SriLanka, Oct. 1 -- In what appeared to be a damning report, the U.S. Department of State, in its latest report, says the country's investment climate remains challenging despite recovery from the 2022 economic crisis with a five percent growth last year exceeding expectations.

The report' 2026 Investment Climate: Sri Lanka', the Department says the sweeping electoral victories of President Anura Kumara Dissanayake and his National People's Power (NPP) parliamentary coalition in late 2024 had provided political stability.

However, it says the NPP's commitment to the country's $3 billion, four-year (2023-2027) Extended Fund Facility IMF programme reassured investors, but many remain wary given the NPP leadership's mixed messages on the o...