Foreign Affairs
Challenges in Sri Lanka’s India-China Strategic Balancing

Colombo, Sri Lanka

Sri Lanka, situated at the crossroads of vital sea routes, is facing a complex diplomatic dance with India and China due to its strategic location along maritime routes connecting the Middle East, Africa, and East Asia. The island nation’s historically close ties with India have been influenced by its geographical proximity and cultural affinities.

However, China’s expansion in Sri Lanka over the past two decades has presented both economic opportunities and security concerns for the island nation. The complex relationship between the two Asian giants presents both opportunities and challenges for Sri Lanka’s diplomatic efforts.

Sri Lanka’s strategic balance between India and China is a complex and evolving geopolitical challenge, with implications for the region’s security and stability. As global dynamics evolve, Sri Lanka’s ability to maintain equilibrium will be tested, and its choices will have consequences beyond its shores. The world watches closely as Sri Lanka navigates these treacherous waters.

The China Factor

China’s economic engagement with Sri Lanka has been significant. The construction of the Hambantota Port and the Colombo Port City are prominent examples of Chinese investments in Sri Lanka’s infrastructure. These projects have brought much-needed development to Sri Lanka but have also raised concerns about the country falling into a debt trap.

Sri Lanka’s growing reliance on China has sparked unease in India, which views its southern neighbour as part of its sphere of influence. India has legitimate security concerns regarding China’s presence in the Indian Ocean, particularly the Chinese Navy’s frequent visits to Sri Lankan ports. This has led to increased scrutiny of Sri Lanka’s foreign policy choices by its Indian counterparts.

The Indian Dilemma

India has sought to counterbalance China’s influence in Sri Lanka by deepening its engagement with the island nation. India has provided economic assistance, engaged in defence cooperation, and bolstered cultural and people-to-people ties. However, New Delhi’s attempts to exert greater influence in Sri Lanka have at times been met with resistance from Colombo, as Sri Lanka aims to maintain its strategic autonomy and avoid becoming overly dependent on any single power.

Navigating the Diplomatic Tightrope

Sri Lanka’s challenge lies in maintaining a delicate balance between its relationships with India and China. The island nation is keen to capitalize on the economic benefits of its partnerships with both countries while avoiding being dragged into their geopolitical rivalry. Colombo’s policy of non-alignment and “friendship with all, enmity with none” has been its guiding principle.

However, achieving this balance is no easy task. Sri Lanka’s internal political dynamics, including shifting leadership and domestic pressure, further complicate its foreign policy choices. Moreover, the broader international context, such as the U.S.-China rivalry and the Indo-Pacific competition, adds another layer of complexity.

Future Prospects

Sri Lanka’s strategic balancing act will continue to be tested in the coming years. The island nation must carefully manage its relationships with India and China to safeguard its sovereignty and promote its economic development. Finding common ground with both powers, especially on matters of security and regional stability, will be crucial.

Economic Dependence on China

One of the primary challenges Sri Lanka faces in balancing its relations with India and China is its growing economic dependence on Beijing. China has poured billions of dollars into Sri Lanka’s infrastructure projects, including the Hambantota Port and the Colombo Port City. While these investments have the potential to boost the country’s economy, they also raise concerns about Sri Lanka’s ability to navigate the geopolitical minefield effectively. Critics argue that this economic reliance on China may tilt the balance in favour of Beijing.

India’s Security Concerns

India has historically viewed Sri Lanka as part of its sphere of influence. The proximity of the two nations has made India sensitive to developments in Sri Lanka, particularly those involving China. India’s security concerns have been exacerbated by China’s expanding presence in the Indian Ocean, which it views as a challenge to its regional dominance. Consequently, India closely monitors Sri Lanka’s foreign policy decisions and expects a degree of strategic alignment.

Sri Lanka’s Diplomatic Challenges

Sri Lanka’s leadership faces the daunting task of satisfying both Indian and Chinese interests while safeguarding its own sovereignty. Striking a balance between these competing powers is akin to walking a tightrope, and missteps can have severe consequences. Sri Lanka’s recent decision to grant China a 99-year lease on the Hambantota Port in 2017 raised eyebrows in India and caused concern among regional stakeholders.

Future Implications

The challenges Sri Lanka faces in maintaining a delicate equilibrium between India and China have significant implications for regional stability. Any perceived tilt towards one power could trigger a regional power struggle, potentially undermining Sri Lanka’s security and economic prospects. Furthermore, it could contribute to further militarization of the Indian Ocean, making it a flashpoint in global geopolitics.

Challenges in Sri Lanka's India-China Strategic BalancingChinaChina FactorEconomic Dependence on ChinaFuture ImplicationsFuture ProspectsIndiaIndia's Security ConcernsNavigating the Diplomatic TightropeSri LankaSri Lanka's Diplomatic ChallengesThe Indian Dilemma