US State Department Highlights Adani Pullout and Investment Challenges in Sri Lanka's Inconsistent Economic Climate

Sep 30, 2025 08:11 pm CST

The US State Department's 2025 Investment Climate Statements details Sri Lanka's inconsistent foreign investment policies, citing Adani Group's $400 million renewable energy project withdrawal as a prime example. Despite 5% GDP growth in 2024, Sri Lanka's investment environment remains challenging due to regulatory unpredictability, bureaucratic hurdles, and policy reversals. The current government's mixed messages about privatization and investment priorities continue to deter potential large-scale foreign investors despite public rhetoric supporting international business engagement.