The Nation Rebuilding Plan was launched from the deep southern town of Hambantota, 230 kilometers from Colombo.

Work to build 100 houses was commenced under Kumaratunga's participation in Hambantota which is one of the country's 14 administrative districts devastated by the Dec. 26 tsunami tidal waves attack.

The government said 15 such townships are to be built in the south and northeast coastal areas.

Over 6,000 houses are to be constructed in Hambantota which lost nearly 4,500 people.

Addressing the gathering in the company of Prime Minister Mahinda Rajapakse and opposition politicians, Kumaratunga said that it was time to shed all political and other differences and rebuild the nation.

She even called upon the Tamil Tiger rebels to give up their call for separation in the face of the tragedy and assured her co-operation to the rebels in rebuilding the rebel-held areas.

The action plan for rebuilding the nation includes plans to reconstruct and re-plan roads, rail tracks, bus transport, electricity, water supply and sanitation, telecommunication services, ports, education and health sector, social services, housing and township development, industrial sector, tourism environment and judicial institutions -- all destroyed by the killer tsunami.

Sri Lanka lost over 38,000 people with 800,000 others displaceddue to tsunami devastation. The tsunami also destroyed more than 90,000 houses throughout the country.

The government said it needs around 1.5 to 1.8 billion US dollars for the reconstruction and has received massive pledges of international assistance.