But, he added, it "still has a long way to go."
Newfound freedoms of expression have exposed deep-seated hatred in the predominantly Buddhist nation of 60 million, initially against ethnic minority Muslims known as Rohingyas, and then to Muslims in general, leading to some of the worst sectarian violence the country has seen in decades.
At least 240 people have been killed and another 140,000 forced to flee their homes, most of them Muslims. Many of those responsible for the worst of the bloodshed remain unpunished.
In many cases, security forces stood by as Buddhist mobs chased down their victims with machetes, wooden sticks and iron chains.
"It could take decades to overcome the ingrained prejudices promoted by extremist voices in parts of the country," the visiting Elders said in a statement. "This will require far-reaching cultural changes in all parts of society, including through changes in the education curriculum."
They met with President Thein Sein and other officials, legislators, religious leaders and private groups.
Former South African President Nelson Mandela founded the 13-member group known as "The Elders" in 2007 to work toward peace and human rights.