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Julie Chung, the U.S. ambassador in Sri Lanka, said the United States has concerns about the potential impact of the legislation and urged “Sri Lanka to prioritize transparency and ensure any legislation does not stifle the voices of its people .�

“In addition to jeopardizing democratic values, vague and overly restrictive legislation can hinder investment and the development of a digital economy, undermining the economic growth that Sri Lanka needs,� Chung said in a statement posted on her X account.

Critics say the law is an attempt by Sri Lanka’s governing coalition to stifle speech in an election year as the Indian Ocean island nation copes with an economic crisis that required an international bailout.

The media, opposition lawmakers, internet and civil rights groups say the measure would undermine human rights and freedom of expression.

Human Rights Watch said Wednesday that the bill would create a repressive law with broad and vague “speech-related offenses punishable by lengthy prison terms.�

The Asia Internet Coalition, which has Apple, Amazon, Google and Yahoo as members, warned that the bill could undermine potential growth and foreign direct investment into Sri Lanka’s digital economy.

The government said the legislation addresses problems related to online fraud, abuse and false statements that threaten national security and stability. It denied the bill was drafted to harass media or political opponents.

Sri Lanka is struggling to emerge from its worst economic crisis, which hit the island nation two years ago. The country declared bankruptcy in 2022, with more than $83 billion in debt, more than half of it owed to foreign creditors.

The crisis caused severe shortages of food, fuel and other necessities, which fed strident public protests that led to the ouster of President Gotabaya Rajapaksa. After Rajapaksa fled, then-Prime Minister Ranil Wickremesinghe was appointed as president by parliament.

The IMF agreed last year to a $2.9 billion bailout package for the hard-hit country.

, but public dissatisfaction has intensified as the government imposed new taxes on professionals and businesses and raised energy bills.

Rights groups say that with the presidential election coming later this year, Wickremesinghe has sought to stifle dissent by cracking down on anti-government protests and arresting protestors and activists.

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