Fitch Ratings, a global rating agency, said the South Asian and South East Asian countries are divergent in terms of regulatory risk. It says Sri Lanka has the highest risky regulatory environment while the risk is lowest in Malaysia. Buddhika Piyasena, Director in Fitch’s TMT team, said, Sri Lanka’s high regulatory risk score reflects insufficient transparency in the regulatory process combined with the regulator’s strong connection with the political framework. The total regulatory risk score for each market is derived based on three major sub-categories: Political & Social Policy Risk. Industrial Policy Risk.