Economic Diplomacy, Asian Century and Sri Lanka`s Foreign Policy

Abstract

The 21st century has been widely regarded as the Asian century and this global power shift is characterized by unprecedented economic growth, investments and enhanced regional cooperation. This global power shift continues to underscore the importance of economic diplomacy. Today we are living in a highly complicated and interconnected world where economic diplomacy knits the fabric of international relations. Thus, in a situation of worldwide acceptance of global power shift from West to East coupled with the rising importance of economic diplomacy, as an Asian country, Sri Lanka certainly has great opportunities of yielding greater results of these developments in the international arena. Against this backdrop, this study looks into Sri Lanka’s current foreign policy trends to understand and analyze how Sri Lanka has adopted itself to welcome these developments in the international arena. The main objective of this study is to understand and critically evaluate the new developments in country’s foreign policy over the last three years. It looks into what measures Sri Lanka have already taken and what more can be done in order to maximize the benefits from this global power shift. This is a qualitative case study research which takes into account both primary and secondary data. The study remains significant as this shift in country’s foreign policy has yet to be addressed adequately. The study reveals that the country has made great strides in its foreign policy approach in the context of adjusting itself to the developments in the international arena. A significant reorientation of country’s foreign policy is observed, particularly in terms of strengthening ties with Asia while effectively balancing its ties with China and India.