The United States said on Wednesday that it would ease some of its toughest sanctions against Burma in response to the southeast Asian nation's fledgling transition toward democracy after decades of military rule.

US Secretary of State Hillary Clinton said in Washington on Wednesday that the Obama administration would loosen restrictions that prevent American companies from investing in and providing financial services to the resource-rich nation.

However, she said the administration would be moving forward slowly, as the reform process has "a long way to go."

In addition to easing sanctions on Burma, the US announced it would name an ambassador to Burma after an absence of two decades. Some senior Burmese officials would also be given travel visa for the US.

Long road to reform

Clinton hailed the recent wave of reforms implemented by former general President Thein Sein which have led to the release of political prisoners and the signing of truces with rebel groups.

In elections on Sunday, democracy activist Aung San Suu Kyi won her first seat in parliament while her party, the National League for Democracy, won 43 of the 45 seats it contested.

"This is an important step in the country's transformation," Clinton said. "While there is much to be done, and significant tests lie ahead, we applaud the president and his colleagues for their leadership and courage and we congratulate … Aung San Suu Kyi on her election to parliament."

Some restrictions would remain in place against people and institutions in Burma that oppose democratic progress. The US has had sanctions in place against Burma since 1988, barring most Americans from commercial transactions there. These bans will now start to be rolled back, although Clinton did not provide a timeline. The easing of financial service and investment bans is "part of a broader effort to help accelerate economic modernization and political reform," she said.

The eased restrictions could also open the door for US private aid groups and non-profit organizations to take on democracy building, health, and education projects in Burma.

mz/slk (Reuters, AP)