In pictures: Tsunami rehabilitation

Once complete, this settlement will be a big improvement over the previous one, say the residents. The plans include building a pre-school and a health clinic. There is even a plan to build a recreation hall with a library. Built along the key coastal highway, many think the future of Palana is very bright.

"I'd say we are the lucky ones," says Titus. "There are many people still homeless and living in transit camps. But we now have a roof over our heads. We thank the Lord everyday."