Reacting to a local media report in this regard, visiting Foreign Secretary Nirupama Rao said there was no truth in it and that only local help was being utilised for construction activities in the region.
She asserted that the construction work would take place with the help of locals only.
Rao, who arrived here on Monday night on a three-day trip, visited Mullaitivu today and lauded the people there for meeting the challenges during the LTTE war and beginning life anew.
The top Indian bureaucrat hailed the people of Mullaitivu for being "resilient like steel" and said "India is ready to open its heart to help resettle, rebuild and restore their livelihood."
"We will not only build houses but also repair them. We want to participate in their recovery and progress," Rao said during her visit to the Mullaitivu administrative district.
Rao, during her interaction with the resettled people, also applauded the courage of the single mothers and their efforts.
At Trincomalee, she met Eastern Chief Minister Pillayan and discussed construction of houses in the province. She said the beneficiaries have to be identified, noting that "we have widows, the old and the handicapped."
Rao also visited Thirukoneswaram temple in Trincomalee during her visit. The Foreign Secretary is scheduled to hold discussions with Tamil and other leaders. Besides, she is expected to meet President Mahinda Rajapaksa and Foreign Minister G L Peiris tomorrow before flying home.
Rao was accompanied by Indian High Commissioner Ashok Kanta and Deputy High Commissioner Vikram Misri during her visit to the north and east of Sri Lanka. During her visit to some northern areas yesterday, she expressed hope that Sri Lankan government would do its best to address the problems faced by internally displaced people.