How Global Trends Affect Sri Lanka
Photo courtesy of Mint
In today’s interconnected world, Sri Lanka finds itself at the heart of many global currents from economic shocks and shifting power rivalries to climate challenges and regional security concerns. In a CPA and Groundviews podcast Shakthi de Silva, lecturer in International Relations, explores how a small island state like Sri Lanka must navigate these changes with agility, foresight and balance. Drawing comparisons with other island nations such as Mauritius and the Maldives, the discussion highlighted the urgency of repositioning Sri Lanka in a fast evolving global order.
A recurring theme is the delicate balancing act between India and China. Both giants exert significant influence over Sri Lanka whether through trade, investment or strategic interests in the Indian Ocean. The Hambantota Port lease and India’s growing presence in Trincomalee serve as reminders of the fine line Sri Lanka must walk, leveraging opportunities without compromising sovereignty. Japan and India also emerge as critical trade partners but questions remain about how Sri Lanka can avoid deepening trade deficits while learning from Vietnam’s example of balancing relations with both.
The conversation further situates Sri Lanka within larger global disruptions. The Russia-Ukraine war, for example, has had ripple effects on its economy from fuel shortages to fertiliser crises, exposing vulnerabilities in both policy and resilience. Similarly, the prolonged US-China trade tensions raise questions about whether Sri Lanka can seize supply chain shifts to South Asia or risk being left behind. These economic challenges are closely tied to its foreign policy stance – whether it maintains strict neutrality or takes bolder steps to engage in regional forums such as the Indian Ocean Rim Association or Quad-linked dialogues.
The podcast does not shy away from reflecting on crises at home. The COVID-19 pandemic laid bare the weaknesses of the health system, offering lessons from countries like South Korea and Cuba on preparedness and innovation. Looking ahead, climate change emerges as perhaps the most pressing issue of all with rising seas, floods and droughts threatening livelihoods and development pathways. Here, too, models such as Bangladesh’s climate resilient farming and the Maldives’ renewable energy investments provide inspiration for Sri Lanka’s future.
The discussion underscores a simple but profound truth: Sri Lanka cannot afford to remain passive. Whether in diplomacy, trade, security or sustainability, the country’s relevance and resilience will depend on how quickly and wisely it adapts to the global shifts shaping the century.
Watch the podcast here:
