Abstract
Sri Lanka is a small state strategically placed between two powerful States India and China, the island nation is significant for India as its closest maritime neighbor and on the other hand China has become an all-weather friend to Sri Lanka who has not interfered into the internal political issues and a supporting character in international politics. Sri Lanka has been sandwiched between the great power politics of these powerful nations since the U.S. is carrying out its strategy using the strategic alliance of the United States, India, UK, Japan, and Australia to counter the growing influence of China. Most importantly, Sri Lanka being a small state, having balanced relations with the big powers is effective to foster the development goals of the countries. Having understood this paper discusses Sri Lanka’s strategic location and foreign policy response towards India and United States on Chinese investments in Sri Lanka. This paper further discusses external and internal factors, core issues, and intentions of above mentioned powerful nations and Sri Lankan foreign policy towards these powerful nations by fostering closer ties in world politics with two regional giants and the United States.
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