United States Department of State

Sri Lanka is a constitutional, multiparty republic. In 1978, it shifted away from a socialist orientation and opened up to foreign investment, although changes in government have often been accompanied by reversals in economic policy. Former President Rajapaksa followed a statist economic policy advocating government control of strategic enterprises and expanding the role of the state. The Rajapaksa administration also followed a substantial government infrastructure development program, largely financed with Chinese loans. Most of these projects bypassed the government tender process, and Sri Lanka's corporate sector or non-Chinese foreign investors played little to no role in the projects. The projects, valued at approximately USD 3-6 billion, range from construction of major ports, international airports, and power stations, to expressways, reclaimed land, highways, railways, and telecommunication towers. President Sirisena's administration has suspended work on many of these projects pending review, and some contracts are being renegotiated.

The Government of Tanzania (GOT) generally has a favorable attitude toward foreign direct investment (FDI) and has had considerable success in attracting it. Tanzania has attracted USD 1.87 billion of FDI inflows since 2013, a 72 percent increase from the previous year and the highest in the East Africa region. The UN Conference on Trade and Development's (UNCTAD) 2014 World Investment Report listed a total of USD 12.72 billion of FDI stock currently in Tanzania. In recent years, the government has sought to attract investment in both productive and extractive sectors, including agriculture with the Kilimo Kwanza (agriculture first) strategy and the development of the Southern Agricultural Growth Corridor of Tanzania (SAGCOT), and mining, with both sectors eligible for 100 percent capital expenditure deductions.

The Government of Dominica strongly encourages foreign direct investment, particularly in industries that create jobs, earn foreign currency, and have a positive impact on its citizens. Through the Invest Dominica Authority (IDA), the government has instituted a number of investment incentives for businesses considering the possibility of locating in Dominica, encouraging both domestic and foreign private investment. Government policies provide liberal tax holidays, duty-free import of equipment and materials, exemption from value added tax on some capital investments, and withholding tax exemptions on dividends, interest payments and some external payments and income. Fiscal incentives are provided under various laws to encourage the establishment and expansion of both foreign and domestic investment.

Ecuador is relatively open to foreign investment (FDI) in most sectors. Its overall investment climate remains challenging and uncertain as Ecuador's economic, commercial, and investment policies are often contradictory and subject to change. The regulatory framework has specifically targeted the banking and media sectors, negatively affecting these industries. Frequent changes in Ecuador's tax code make business planning difficult. In general, the legal complexity resulting from the inconsistent application and interpretation of existing laws complicates enforcement of contracts and increases the risks and costs of doing business in Ecuador. Business disputes with U. S. companies can become politicized, especially in sensitive areas such as the energy sector. Several high level investment disputes involving U. S. companies, mostly linked to the energy sector, are under international arbitration.

Romania actively seeks foreign direct investment, and offers 19 million consumers, a relatively well-educated workforce at competitive cost, a strategic location, and abundant natural resources, making it an attractive marketplace. To date, favored areas for U. S. investment include IT and telecommunications, energy, services, manufacturing, especially in the automotive sector, and consumer products. Romania has taken steps to strengthen tax administration, enhance transparency, and create legal means to resolve contract disputes expeditiously. Mergers and acquisitions are subject to review by the Competition Council. The Competition Law allows Romania's Supreme Defense Council to review strategic mergers and acquisitions, in addition to review by the Competition Council. To date, the Supreme Defense Council has not acted on any merger or acquisition. Romania's accession to the European Union (EU) on January 1, 2007 has helped solidify institutional reform. However, judicial, legislative, fiscal and regulatory unpredictability continue to negatively affect the investment climate.

The Government of Rwanda (GoR) understands that private sector development is critical if Rwanda is to achieve its aim of reaching middle-income status by 2020, and reducing the country's reliance on foreign aid. Over the past decade, the GoR has undertaken a series of pro-investment policy reforms intended to improve the investment climate, expand trade in products and services, and increase levels of foreign direct investment. Rwanda enjoys strong economic growth-which averaged 7 percent annually from 2010 to 2014-high rankings in the World Bank's Doing Business report (#46 out of 189 countries in 2015, third best in Africa behind Mauritius and South Africa), and a reputation for low corruption. The country presents a number of opportunities for U. S. and foreign direct investment, including in clean and renewable energy, infrastructure, agriculture, tourism, mining, and information and communications technology.