The United States has named Sri Lanka as a country with many challenges that are not conducive to starting a business.

The US State Department has issued a warning in its 2021 investment climate forecast.

The report states that Sri Lanka has an environment with unpredictable economic policies and that the inefficiency of the public service and the irregularity of the government’s procurement system are contributing factors.

It also explains why corruption in the public sector poses a serious challenge to investors in starting a business.

It states that the kinship of the public service, as well as the legal system affecting foreign investors, is a serious obstacle.