Michael Delaney, assistant US trade representative for central and south Asia, said IP rights protection and software piracy were some of the issues discussed with Sri Lankan authorities during his visit this week.
"There has been a tremendous amount of progress," Delaney said, referring to US demands for Sri Lanka to crackdown on software piracy.
"We sense a very strong desire and determination to build on Sri Lanka's record. We're happy with the co-operation we are receiving," he told a news conference.
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"But there's still some work to do. Obviously our goal is 100 percent and we're not there yet.
Delaney said IP rights are "extremely important" to the United States.
"We have been evolving our economy during the last few decades towards a knowledge and service-based economy, de-emphasising industrial manufacturing.
For the policy to be viable there has to be a fairly effective regime of IP protection in the world, he said.
Delaney was in Sri Lanka for the eighth r