Tarek Mitri, head of the U.N. mission in Libya, told the U.N. Security Council this week that "it goes without saying" that Tripoli needs to do more to address national security.
Dalton told the BBC, however, that despite obvious challenges, the country isn't on a reverse political course.
"Libya has got a lot going for it still because its people are determined to protect the new freedoms that they have," he said.
A new government came to power after the death of Libyan leader Moammar Gadhafi in 2011.
British Prime Minister David Cameron made a surprise visit Thursday to Tripoli after stopping in neighboring Algeria.
Cameron said the British government offered training and military support to the new Libyan government.
"The British people want to stand with you and help you deliver the greater security that Libya needs," he was quoted by the BBC as saying.
The British government recently warned that it was aware of specific threats against Western interests in Libya. A terrorist attack on a natural gas complex in neighboring Algeria, meanwhile, was said to include militants who crossed over from the Libyan border.