German Chancellor Gerhard Schroedersaid Wednesday that his country will contribute to long-term disaster relief efforts in tsunami-hit countries.

"We must not restrict our efforts to immediate relief," Schroeder told a press conference. "We must commit ourselves to long-term development aid."

The German government earlier increased its aid pledge to 500 million euros (660 million US dollars). But Schroeder said it is yet to be decided on how to use the money.

"This can only be determined when there is an overview of projects which make sense," he said, noting that he preferred clean water, health care and children welfare as priority.

A powerful earthquake off the Indonesian island of Sumatra on Dec. 26 triggered a devastating tsunami that swept across the coastal countries of the Indian Ocean, wiping off villages and killing nearly 160,000 people.

It is estimated that more than 1.8 million people in the tsunami-hit regions need food aid and 5 million have been made homeless.