US says Sri Lanka must establish two-way FDI and trade

 US Embassy Chargé d’Affaires Jayne Howell outlines Trump-era foreign policy priorities to make US safer and stronger

 Calls for greater imports of US advanced tech, energy, agriculture and digital exports

 Encourages Sri Lankan firms to scale and invest in US via SelectUSA

 ‘Disciplined’ US investment tied to predictable rules, contract enforcement and transparent procurement

The US signalled that deeper economic engagement with Sri Lanka will depend on sustained reforms and reciprocal trade and investment flows, with US Embassy in Colombo Chargé d’Affaires Jayne Howell telling business and Government leaders that American capital will expand where regulations are predictable, contracts are honoured, and procurement is transparent.

Addressing the AmCham Elevate Sri Lanka CEO Forum 2026 in Colombo yesterday, Howell said: “American foreign policy today is grounded in a simple principle: it must make the US safer, stronger, and more prosperous. Stability is the foundation for markets to function and for capital to move.”

She stressed that Sri Lanka’s push to improve its investment environment is essential if private capital, including from the US, is to scale up with confidence.

Acknowledging regulatory unpredictability, bureaucratic barriers, inconsistent standards, and opaque procurement processes, she noted that American firms nevertheless see opportunity in Sri Lanka, bringing advanced technology, innovation, and transparent business practices that generate skilled employment and integrate markets into resilient global supply chains.

“But American investment is disciplined: it flows where contracts are honoured, regulations are predictable, and procurement is transparent. Where those conditions exist, opportunity follows, and the Port of Colombo is a powerful example of how our economic interests converge,” Howell said.

As South Asia’s leading container transshipment hub, the Port’s planned expansion to 15 million containers by 2027 is expected to improve supply chain efficiency for US manufacturers and consumers, while reinforcing Sri Lanka’s position as a high-standard logistics centre in the Indo-Pacific.

She emphasised that the economic relationship is reciprocal. The US, ranked for the 13th consecutive year as the world’s top destination for foreign direct investment (FDI), offers Sri Lankan firms not merely access to a market, but a platform for expansion.

“Sri Lankan companies looking to grow have two pathways to deepen engagement with the US. First, by harnessing American exports—advanced technologies, resilient energy systems, premium agricultural products, and digital infrastructure. Second, by investing in the US itself. Through SelectUSA, Sri Lankan firms can connect directly with State-level leaders, compare incentives, build supply chains, and position themselves inside the world’s largest consumer economy. Together, trade and investment form a reinforcing cycle,” Howell said.

She said the US remains focused on widening trade ties, improving market access for American exports, and supporting private-sector-led growth. Countries that strengthen transparency and uphold the rule of law attract sustained US investment, innovation, and long-term partnership, she noted.

Howell pledged continued advocacy for fair, open, and competitive operating conditions for American firms, adding that the Embassy would work constructively with Sri Lankan authorities to remove obstacles and expand opportunity. The US, she said, would promote two-way trade and investment capable of generating measurable outcomes for both economies.

On post-Ditwah reconstruction, she said rebuilding must extend beyond restoring damaged assets to constructing a modern and diversified economy grounded in predictable and transparent rules. Strengthened market institutions and disciplined reform, she added, would position Sri Lanka as a dependable Indian Ocean trading hub where global supply chains converge.

Recalling the cyclone’s impact, she noted that the US approved $ 2 million in humanitarian assistance within 72 hours, later doubling the allocation, and deployed two C-130 aircraft and logistics teams to deliver over 170,000 kilos of supplies alongside Sri Lankan counterparts. She said the response reflected a focused, time-bound approach to foreign assistance aimed at stabilising critical sectors and reinforcing long-term resilience.