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US warns Sri Lanka over unstable investment climate

The Daily Guardian

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October 01, 2025

The US Department of State stated that Sri Lanka’s foreign investment policy is inconsistent, burdened by excessive regulations, legal uncertainties, and slow bureaucracy, highlighting Adani Group's withdrawal from a $400 million renewable energy project in the country.

In its 2025 Investment Climate Statements, the department said Sri Lanka is showing signs of recovery from its 2022 economic crisis, with GDP growth hitting 5 per cent in 2024 -- exceeding expectations. However, “the investment climate remains challengin

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