In the annals of world history, the Indian Ocean has emerged as a key site of rivalry, manifesting a complex algorithm of global power politics. Sri Lanka, an Indian Ocean state, with geo-strategic significance, has faced major internal and external challenges. While these strains have transformed Colombo into a state of perennial dependence, the imperative of maintaining its strategic autonomy and balanced relations with both India and China—two influential neighbors—without compromising sovereignty or economic stability, has come under scrutiny. In this context, the chapter situates the rationale of Sri Lanka’s policy vis-à-vis China within the framework of the realist and neorealist theories and seeks to analyse whether Sri Lanka's geographical location has emerged as a double-edged sword, serving both as an advantage and a source of vulnerability; analyse whether Sri Lanka’s domestic issues have contributed toward weakening its prosperity and strategic autonomy; discuss the complex engagement between Sri Lanka and the United Nations Human Rights Council (UNHRC) highlighting the former’s response to UNHRC resolutions in the post-civil war period; discuss the impact of China’s influence, mainly through the Belt and Road Initiative, on Sri Lanka’s foreign policy choices and regional dynamics; and conclude with an analysis of the strategic significance of the Indian Ocean region for Sri Lanka’s domestic policies.