Abstract:
China has become the world’s second largest economy. Sri Lanka is a small economy that is ranked as a lower middle income country. China and Sri Lanka have extensive historical links, religious and cultural, economic and also diplomatic. The strategic location of Sri Lanka, with key shipping lanes, ‘String of Pearls’, has significantly enhanced the two countries’ relations in recent years. Sri Lanka’s strategic location has attracted China’s attention recently due to its strategic interests. Diplomatic ties that have lasted for 60 years between the two countries have mutually benefited both countries. The main objective of this article is to investigate the reasons for this relationship. Other specific objectives can be mentioned as to examine whether there are any hidden agenda, to evaluate the impact of the diplomatic relationship between these two countries and to analyze the outcome of this relationship. The analysis is based on secondary data, such as published and unpublished books, journals, research and etc. The method that is used to analyze the data is descriptive analysis. The findings will be redounded to the future researchers. For instance there are so many hidden objectives for giving funds to Sri Lanka. For instance, because China is a rising power funding Sri Lanka will help to increase its power I Asia Based on the analysis although Sri Lanka does not geographically share borders with China, China regards its relationship with Sri Lanka as an important part of its good neighbor policy. Sri Lanka appears to have forged closer relations with China. Sri Lanka welcomed Chinese investment in building a port in Hambantota, arms from China for use in its civil war, to construct Bandaranaike Memorial Conference Hall (BMICH), highways, Lotus tower and “dialogue partner” status in the Shanghai Cooperation Organization. The two countries have the consensus to work together for a bright future through the bilateral relationship, which will not only benefit the two peoples but also the whole world.