The United States has warned that international concerns over the perceived ‘judicial harassment’ of Nobel laureate Muhammad Yunus could negatively impact Bangladesh's prospects for Foreign Direct Investment (FDI).

Last month, Yunus was handed a six-month jail sentence for violations of labour laws and is now facing fresh graft charges from the Anti-Corruption Commission.

Matthew Miller, a spokesperson for the US Department of State, addressed Yunus's mounting legal woes during a press briefing in Washington on Tuesday.

"So we continue to closely monitor developments in the case against Dr. Yunus. We have expressed our concern that these cases may represent a misuse of Bangladesh’s labor laws to harass and intimidate Dr Yunus.," he said.

Despite being convicted on Jan 1, Yunus, the head of Grameen Telecom, was not immediately jailed as he was granted a one-month bail to appeal the decision. US Department of State also worried that the perceived misuse of labor and anti-corruption laws could raise questions about rule of law and dissuade foreign direct investment.

“We will continue to encourage the Bangladeshi Government to ensure a fair and transparent legal process for Dr. Yunus as the appeals process continues, but I don’t have any actions to preview,” added Millar.