As the globe transitions through a period of flux, Canadian Prime Minister Mark Carney’s address at the World Economic Forum’s Annual Meeting 2026 in Davos may be remembered as a historic statement of fact about the changing world order. Carney stated what many in the Global South knew for a long time, and the collective West opted not to acknowledge it thus far. That the so-called ‘rules-based order’ the world enjoyed post-Cold War was but a farce. While Europe and the blighted United Nations championed ‘Multilateralism’, which was helpful for many middle powers and small States like Sri Lanka to benefit from the ‘new and fair world order’, the Global South knew that when push comes to shove, Military and Economic Might could easily railroad their interest.

“Today I will talk about a rupture in the world order, the end of a pleasant fiction and the beginning of a harsh reality, where geopolitics, where the large, main power, geopolitics, is submitted to no limits, no constraints,” Carney said, adding that, “It seems that every day we’re reminded that we live in an era of great power rivalry, the rules-based order is fading, the strong can do what they can, and the weak must suffer what they must.” He noted: “And faced with this logic, there is a strong tendency for countries to go along to get along, to accommodate, to avoid trouble, to hope that compliance will buy safety. Well, it won’t,” He further argued that, “For decades, countries like Canada prospered under what we called the rules-based international order. We joined its institutions, we praised its principles, we benefited from its predictability. And because of that, we could pursue values-based foreign policies under its protection. We knew the story of the international rules-based order was partially false, that the strongest would exempt themselves when convenient, that trade rules were enforced asymmetrically. And we knew that international law applied with varying rigour depending on the identity of the accused or the victim.” He lamented the breakdown of multilateralism and the stark realities of nation-States’ face.

In this context, Carney and others are promoting a strategy of “variable geometry”, where middle powers (Russia, India, Canada, Australia, Japan, South Korea, etc.) create new coalitions based on shared values such as human rights, sovereignty, and sustainable development to oppose the “transactional” and coercive tactics of great powers. However, in an era where many middle powers seek strategic autonomy, it is evident that Nation-States, big and small, will need to move quickly to redesign some working multilateral platforms and push for diversification of relationships. This is especially important due to the trade war which the Trump administration has triggered with China, and in response to such protectionism, smaller States like Sri Lanka and others may need to aggressively diversify their trade relationships. Here, Sri Lanka may well benefit from a solid FTA with India and seek inclusion in structures like ASEAN. However, Sri Lanka will need to rethink its protectionism and outdated policies and export culture to really benefit from such linkages. The proposed export economic corridor, which Japan has initiated regarding Sri Lanka, will likely be another avenue which the island can use to grow and become stable. For smaller States to survive, they may need to explore more resilient supply chains that offer such nations an opportunity to bypass larger, protectionist trade blocs.

Small nations will likely face more pressure to join security and trade alliances as the great power competition increases. As such, it is important for nations like Sri Lanka to reach an internal consensus on what our national interests are and what foreign policy objectives come from them. Once this is achieved, Sri Lanka should clearly communicate it in regional and international forums. Given the dynamic world order, Sri Lanka will need to have a bigger voice in the international arena, and this will require a rethinking of our international relations approach, with foreign policy, international visibility and participation given more priority and focus. Sri Lanka must get its house in order to do so. The time for petty politics is over; if we don’t improve our game in the international arena, someone else will make our decisions for us.