The Pura Neguma project implemented by the Economic Development Ministry was earlier known as the Northern and Eastern Local Government Service Improvement Project. Financial provision has been made under this project, since 2010, by the Economic Development Ministry for 79 local government agencies in Jaffna, Kilinochci, Mullativu, Vavuniya and Mannar districts in the Northern Province and Ampara, Batticaloa and Trincomalee districts in the Eastern Province.

The main objective of the project is to render better and more efficient local government services to the people through capacity development of the agencies by strengthening administration to coordinate Pradeshiya Sabhas at rural level.

US $ 86 million will be spent for this purpose, out of which US $ 50 million will be made available though the World Bank as a loan from the International Development Agency, while US $ 18.8 million will be a grant from the Australian Government, with the balance met by the government.(ST/KH)