Abstract:
Since the ancient period, India is Sri Lanka’s closest neighbor due to the geographical location as well as
religious and cultural links between the two countries. Recently, China also becomes a close friend of Sri
Lanka mainly in commercial ties. Despite of Sri Lanka, in Indian Ocean there is a competitive rivalry in
between the two Asian giants, India and China. The main objective of the study is “to identify the position of
Sri Lanka in between the rivalry among Indian and China in South Asia”. Specially, the objective of the
study want to find out the policy that Sri Lanka should follow in conducting firm relations with the both
countries. The methodology that has used for the study is qualitative in nature and only based
on secondary data. And descriptive analysis used for the analyzing part. According to the study, for Sri Lanka
Indian as well as China both are significantly important in their sustainable development. Recently, even
though China has became the in the first place of financial supporter, India also assist Sri Lanka especially
after the humanitarian operation. In order to maintain the role of Sri Lanka in between the rivalry between
the rivalry if the two Asian giants in South Asia, Sri Lanka need to maintain a neutral position in conducting
relations with both India and China. The most important factor is that the Indian is the most immediate
neighbor rather than China to Sri Lanka.