The latest Investment Climate Report from the U.S. State Department has stirred political debate, noting that Sri Lanka’s investment environment remains “constrained” and that institutional corruption continues under the current National People’s Power (NPP) administration. This turned out to be the ‘talk of the town’ these days. The report is widely seen as a blow to the NPP/JVP government and comes at a politically charged moment, coinciding with Anura Kumara Dissanayake’s high-profile visit to the United Nations.
Following his UN trip, Anura released to the media a photograph with U.S. President Donald Trump, highlighting it as proof of his government’s strong ties with Washington. In his UN address, too, he emphasized his administration’s fight against corruption. Against this backdrop, the State Department’s report has raised questions about the credibility of that anti-corruption stance.
The U.S. role in Sri Lanka’s anti-corruption drive is not new. Back in 2023, when President Ranil Wickremesinghe’s government introduced sweeping anti-corruption laws targeting the assets of politicians and officials, U.S. Ambassador Julie Chung played an active role behind the scenes. Justice Minister Wijeyadasa Rajapakshe, who drafted the legislation, was met frequently by her during that period. Her consistent pressure and strong interest in cleaning up corruption were seen as a boost to the NPP’s rise, reinforced by her statements and meetings with NPP leaders. Although Chung was initially expected to leave Sri Lanka shortly after Anura came to power, she will remain until the end of this year. Observers believe NPP leaders are likely to voice their displeasure to her over the latest U.S. report.
Adding fuel to speculation, diplomatic sources say that during Anura’s UN visit, U.S. Under Secretary Allison Hooker met Sri Lankan Foreign Minister Vijitha Herath and raised objections to plans to hand over the Sapugaskanda oil refinery to China. Herath, however, did not give a positive response, instead he had said that the project had been initiated under the previous Ranil administration. The release of the State Department report shortly afterward has prompted speculation that Washington’s expectations of the NPP government may have been set unreasonably high.
By Upul Joseph Fernando
