Following a damning US State Department report which warned investors of the risks they faced in Sri Lanka, US Ambassador to Sri Lanka, Alaina B. Teplitz, raised concerns over the legislation covering Colombo’s Port City.
“I continue to be concerned about some aspects of that (Port City) legislation. Because there appears to be openings for either corrupt influences or potential of illicit financing, money laundering and things like that. US companies are going to be wary of that,” Teplitz stated.
Whilst she maintained that the US had not discouraged American companies from investment, she further noted that the US has imposed sanctions on a Chinese company involved in the Port City Project. She added that “doing business with that company might not be advisable”.
Teplitz also raised concerns over the investment environment in Sri Lanka for any company and not just American companies. Teplitz statement comes as the European Union is set to review its favourable trading agreement, the GSP+ agreement, with Sri Lanka. Last month the EU parliament passed a resolution calling on the EU council to repeal the GSP+ trading agreement given Sri Lanka’s deteriorating human rights conditions and refusal to repeal the Prevention of Terrorism Act.
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