🇱🇰Center of sea lanes and power plays: What makes Sri Lanka rising node in South Asia 👇

📍Strategic Location

Sri Lanka lies near the vital Hormuz–Malacca corridor, through which 60% of global oil trade flows.

Western shipping lines view Sri Lanka as a fallback logistics hub amid disruptions in the Suez/Red Sea corridor.

💵 Economic Outlook

After the 2022 crisis, Sri Lanka is steadily rebounding — with inflation down and GDP growth projected at ~5% in 2024.

India played a key role in the recovery, providing $4B in aid and emerging as its most reliable economic partner.

🇮🇳🇨🇳India-China balance

Sri Lanka utilises similar balancing strategy as Nepal — welcoming Chinese investment while deepening cooperation with India on defense, culture, and infrastructure.

India is boosting road-and-rail links, aviation, and digital links under BIMSTEC.

At the same time, Sri Lanka is one of the most visibly impacted by the China's BRI (Belt and Road Initiative).

Some towns like Hambantota (China-backed) and Kankesanthurai (India-backed) are symbols of geopolitical competition — with Indian and Chinese projects just kilometers apart.

🤝Trade

Sri Lanka exports apparel, tea, and rubber to Latin America and Africa — increasingly bypassing Western markets.

The Adani-led Colombo Port terminal, backed by Indian and Japan, is framed as a strategic alternative to Chinese port infrastructure.

It's positioning itself as a South–South trade node, especially with Indian logistical support.

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