COLOMBO, July 31, 2025 —
At a high-level policy forum titled “Geopolitics & International Trade: A Sri Lankan Perspective” held in Colombo on Tuesday, former Foreign Secretary Ravinatha Aryasinha offered a candid assessment of Sri Lanka’s role in global trade dynamics, stating that the country has “limited leverage” amid evolving geopolitical pressures.
Speaking to an audience of diplomats, economists, and academic experts, Aryasinha emphasized that Sri Lanka’s geographic location gives it visibility, but not necessarily influence, in broader trade and strategic affairs.
Global Realities and Domestic Constraints
“While we are strategically placed in the Indian Ocean, that alone does not grant us negotiating power,” Aryasinha said. “Trade leverage is earned through consistent policy, economic competitiveness, and the ability to adapt to global supply chains — areas where we still have considerable work to do.”
He added that geopolitical alignments — especially those involving regional powers like India and China — are increasingly shaping the nature of trade flows, investments, and even aid distribution, leaving smaller nations like Sri Lanka to navigate carefully without alienating key partners.
The China-India Balancing Act
Aryasinha noted that Sri Lanka’s balancing act between China and India, particularly in terms of port access, infrastructure loans, and investment deals, has drawn international attention but also increased diplomatic pressure.
“Our biggest challenge is not choosing sides, but proving that we are capable of acting in our own long-term interest, independent of external coercion,” he said.
A Call for Institutional Strengthening
The former Foreign Secretary also called for Sri Lanka to strengthen its diplomatic institutions and trade negotiation capacity. “We need more than just good will and geography,” he warned. “If we are to play a constructive role in the evolving global trade order, our institutions must be equipped with technical expertise, foresight, and policy continuity.”
Outlook
As the world faces trade fragmentation and shifting geopolitical alliances, Sri Lanka’s policymakers are being urged to take a pragmatic approach, focusing on economic reform, regional cooperation, and rebuilding investor confidence.
Aryasinha concluded his remarks by emphasizing that the country’s future will depend not on how it is perceived externally, but on how effectively it builds resilience and competitiveness from within.
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