Earlier this year, Adani pulled out of a wind project in Sri Lanka, citing prolonged negotiations. (Photo: Envato) Show Quick Read Summary is AI Generated. Newsroom Reviewed

Sri Lanka's foreign investment policy is inconsistent and is marred by unnecessary regulations, legal uncertainty and poor bureaucratic responsiveness, the US Department of State said, citing Adani group's pullout of a $400 million renewable energy project in the island nation.

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% in 2024 -- exceeding expectations. However, 'the investment climate remains challenging'.

This despite improved political stability following the sweeping 2024 electoral victory o

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