NEW DELHI: A Red Cross investigation has found no evidence to support claims that a staff member in Sri Lanka demanded sex from a war-displaced woman in return for a housing grant sponsored by the Indian government, an official said on Thursday.

The Sri Lanka Red Cross Society (SLRCS) began a probe in early October after receiving a written complaint from a woman accusing a technical officer of demanding sexual favours in exchange for speedy dispersal of a grant to rebuild her home.

Mahieash Johnney, Sri Lanka communications manager for the International Federation of Red Cross and Red Crescent Societies (IFRC), said a panel interviewed the complainant and 15 other people but found "no credible evidence to support the complaint".

The five-member panel of SLRCS and IFRC members instead found proof that wrangling between former and current staff at a local Red Cross office was behind the false allegation, he said.

"During the investigation the panel found credible evidence that this entire episode was fuelled by internal issues of the Kilinochchi Branch. Evidence was there that ex- and present employees have been behind this entire episode," he said.

The accused staff member, who took voluntary leave during the probe, has returned to work but in another branch to "stop unnecessary confrontations," he added.

Johnney said the complainant "did not 100 percent agree" her claim was false, so the Red Cross had given the panel's findings to the Ministry of Law for a third party inquiry if deemed necessary.

Tens of thousands of people were killed and hundreds of thousands displaced during the Indian Ocean island's 26-year civil war which ended in May 2009. Many buildings and infrastructure were destroyed in the fighting between government forces and Tamil separatists.

Neighbouring India has been providing humanitarian aid to Sri Lanka, including funds to build 25,000 houses in the former war zone in the island's north.

The funds, given in instalments to families displaced by the fighting, are managed by humanitarian agencies including the Red Cross, which is responsible for 17,500 homes.

Johnney said false allegations could damage the reputation and hard work of staff and jeopardise donor funding for houses required for 60,000 more families.

"However, we believe that our actions from the inception ... have showcased that we are ready to tackle issues like these head on," he told the Thomson Reuters Foundation.

Officials from the Indian High Commission in Colombo were not immediately available for comment.