Sri Lanka's strategic location in the Indian Ocean has made it a focal point of geopolitical competition among global powers. Positioned at the crossroads of major maritime routes, Sri Lanka is an essential player in the broader geopolitical landscape. Sri Lanka's foreign policy is a balancing act akin to maintaining a relationship with ‘three jealous boyfriends — India, China, and the United States (US)’. Each of these powers has unique interests in Sri Lanka and exerts influence through economic, security, and diplomatic channels. As a small State navigating the ambitions of these global giants, Sri Lanka must carefully balance its policies to maintain sovereignty while maximising economic and strategic benefits.
The complexity of Sri Lanka's foreign policy is not limited to bilateral relationships. It also extends to multilateral engagements, particularly with the European Union (EU), which holds significant influence over trade, human rights, and governance-related matters. By exploring how Sri Lanka interacts with each actor, the analysis reveals the intricate diplomatic tightrope it must walk to secure its national interests while accommodating external pressures.
Historical context
Sri Lanka's foreign policy since Independence in 1948 has been characterised by non-alignment. From the outset, the island nation sought to avoid entanglement in the ideological struggles of the Cold War. This commitment to neutrality was institutionalised through its active participation in the Non-Aligned Movement (NAM), which sought to provide a voice to countries that wished to remain independent from both Western and Eastern blocs. By joining the NAM, Sri Lanka positioned itself as a proponent of global peace and sovereignty, which allowed it to maintain cordial relations with a variety of nations despite the prevailing superpower rivalry.
However, the post-Cold War period ushered in significant changes to Sri Lanka's foreign policy. With the dissolution of the bipolar world order, Sri Lanka transitioned to a pragmatic engagement strategy, recognising the need to cultivate relationships with emerging global powers. Economic liberalisation policies in the late 1970s also played a critical role in this shift, as Sri Lanka increasingly relied on foreign investment and trade to fuel its economic development. The shift from ideological neutrality to practical engagement reflects Sri Lanka's attempt to adapt to a rapidly changing global environment while safeguarding its sovereignty and national interests.
India: Protector and dominant neighbour
India shares historical, cultural, and political ties with Sri Lanka that span centuries. This deep-rooted relationship is further reinforced by geographical proximity, making Sri Lanka a crucial component of India's regional security architecture. India views the island nation as part of its sphere of influence and has historically been sensitive to any external power gaining a foothold in its neighbourhood. This sensitivity became particularly evident during the Sri Lankan internal conflict (1983-2009), when India intervened both diplomatically and militarily to shape the conflict's outcome. The Indo-Sri Lanka Accord of 1987 and the subsequent deployment of the Indian Peace Keeping Force were emblematic of India's desire to maintain influence while promoting a political solution to the ethnic conflict.
Economic and cultural ties between India and Sri Lanka remain strong. Trade agreements such as the India-Sri Lanka Free Trade Agreement facilitate robust economic exchanges, while Indian investments in infrastructure, energy, and tourism sectors continue to grow. However, the relationship is not without its challenges. Sri Lanka's growing ties with China have caused concern in New Delhi, particularly regarding strategic assets like the Hambantota Port. Moreover, domestic political sensitivities, especially concerning the Tamil minority in Sri Lanka, continue to shape India's foreign policy approach. Despite these tensions, Sri Lanka continues to engage with India as a critical partner, balancing its economic needs with regional diplomatic obligations.
China: Econ. powerhouse and strategic partner
China's engagement with Sri Lanka is primarily economic, facilitated through large-scale investments under the Belt and Road Initiative. Over the past two decades, China has emerged as a key development partner, financing major infrastructure projects such as the Hambantota Port and the Colombo Port City. These projects signify China's strategic ambition to secure maritime routes and expand its influence in the Indian Ocean region. For Sri Lanka, Chinese investments provide much-needed financial resources for infrastructure development, which have been critical to its economic growth agenda.
However, the deepening of Sri Lanka-China relations has raised concerns about debt dependency and sovereignty. In 2017, Sri Lanka leased the Hambantota Port to China for 99 years due to its inability to service loans, sparking fears of debt-trap diplomacy. This move amplified geopolitical tensions, with both India and the US viewing China's growing presence as a threat to regional stability. Despite these concerns, Sri Lanka continues to engage with China, driven by its need for economic development and strategic diversification. Sri Lanka's leaders argue that maintaining close ties with Beijing is essential for national development, even as they seek to reassure other partners about the nation's independence.
The US: The global policeman and strategic counterbalance
The US plays a crucial role in Sri Lanka's foreign policy landscape through its emphasis on regional stability, countering Chinese influence, and promoting democratic governance. US-Sri Lanka relations are anchored in trade, security cooperation, and humanitarian assistance. The US has provided significant support to Sri Lanka in areas such as counter-terrorism, maritime security, and disaster relief. Agreements such as the Acquisition and Cross-Servicing Agreement and the now-defunct Millennium Challenge Corporation Compact reflect Washington's strategic interests in maintaining a free and open Indo-Pacific.
Despite this cooperation, tensions periodically surface due to differences over human rights and post-war reconciliation. The US has been a vocal advocate for accountability and transitional justice in Sri Lanka following the conflict. This focus on human rights has led to friction with the Sri Lankan authorities, who view such interventions as infringements on national sovereignty. Nevertheless, Sri Lanka recognises the strategic and economic importance of maintaining a constructive relationship with the US, balancing its engagement with other powers while seeking to manage external pressures on domestic policies.
The EU: The normative power and economic partner
The EU represents a critical partner for Sri Lanka, particularly in the areas of trade, human rights, and governance. Sri Lanka benefits significantly from preferential trade arrangements under the EU's Generalised Scheme of Preferences Plus (GSP+), which provides tariff-free access to European markets for Sri Lankan exports. This economic relationship is vital for Sri Lanka's textile and agricultural sectors, which rely heavily on EU markets for revenue and employment.
However, the EU's engagement with Sri Lanka extends beyond economic interests. The EU actively monitors human rights conditions and democratic governance in Sri Lanka, tying the continuation of GSP+ benefits to compliance with international human rights standards. Periodic concerns over media freedom, minority rights, and post-war accountability have led to diplomatic tensions. Nevertheless, Sri Lanka continues to prioritise its relationship with the EU, recognising the bloc's influence as a global regulatory power and its importance as a trade partner.
Conclusion
Sri Lanka's foreign policy reflects the complexities of navigating relationships with three competing powers, each with distinct interests. The metaphor of "a girlfriend with three jealous boyfriends" encapsulates the tension and strategic balancing required to maintain sovereign autonomy while benefiting from economic and security partnerships. Moving forward, Sri Lanka must adopt a nuanced and flexible foreign policy that preserves its independence while fostering mutually beneficial relationships with all global actors. The inclusion of the EU further complicates this balancing act, as Sri Lanka must simultaneously address economic dependencies and normative pressures. By adopting a pragmatic approach and diversifying its partnerships, Sri Lanka can better navigate the evolving global order while safeguarding its national interests.
(Thilakarathna is a lecturer of law attached to the Colombo University. Gunathilake is an attorney)
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The views and opinions expressed in this article are those of the author, and do not necessarily reflect those of this publication