Sri Lanka, Sept. 28 -- 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 u...