Sri Lanka and the Geopolitics of Indo-Pacific: Perceptions, Opportunities and Challenges

Abstract

Sri Lanka occupies a unique strategic location in the Indian Ocean that attracts major powers such as China, the United States (US), India and most recently, Japan and Australia. The paper explores how Sri Lanka confronts the struggle of power between major powers, mainly the US and China. This study examines the geopolitical and geo-economic interaction in the Indo-Pacific. It discusses the importance of global value supply chains, implications of China's political presence in the region, and the role played by multinational firms. Although Sri Lanka is a small country, it is concerned about the great powers' interactions due to its strategic location and geopolitical significance. The paper finds a mixed impact of the geopolitics in the Indo-Pacific on the foreign relations of Sri Lanka in relation to China and India in particular and Indo- Pacific in general. The study further finds that geopolitics act on geo-economic relationships directly and indirectly. Sri Lanka should take more seriously the geopolitical development in the Indo-Pacific region in crafting its foreign policies. The trend creates many opportunities for Sri Lanka. The island requires a substantial expansion and upgrading of its infrastructure and better connectivity to regional markets and value chains.