Colombo, Sept. 28 (Daily Mirror) – The United States has cautioned that Sri Lanka’s regulatory unpredictability, bureaucratic red tape and selective transparency are discouraging broader participation of American firms, despite strong interest in sectors such as ICT, energy, aviation and defence.
The U.S. Department of State’s 2025 Investment Climate Statement on Sri Lanka, released this week, paints a familiar picture of an economy with promise but weighed down by systemic obstacles. It notes that abrupt policy shifts, opaque procurement practices and delays in approvals continue to frustrate investors, undermining confidence in the stability of the investment environment.
Although Sri Lanka has pledged reforms under its IMF programme and announced plans to lure foreign capital, the report underscores that tangible progress has been slow.
“High-profile energy projects have already stalled amid disputes over tariffs, while aviation and defence firms cite complex licensing procedures and inconsistent enforcement as reasons for hesitation,” it said.
The statement comes at a time when the government is seeking to reignite growth and court foreign investment. Yet, according to Washington’s assessment, without greater transparency, streamlined processes and consistent rules, Sri Lanka risks missing out on deeper U.S. business engagement at a critical stage of its recovery.
