Perspective Paper – Small Nations, Big Impact: The Significance of Sri Lanka’s Strategic Position in Indian Ocean Trade and Geopolitics
Abstract
Known as the ‘pearl of the Indian Ocean’, Sri Lanka boasts a rich history dating back over 2,500 years. This South Asian nation holds a crucial position along international sea routes, affording it a distinct advantage in global trade. However, since ancient times, this very factor has affected Sri Lankan industries and society both positively and negatively. The aim is to contribute to a deeper understanding of the Island’s trading activities and involvement in international trade, geopolitics, and the socioeconomic implications of Sri Lanka’s location in the Indian Ocean. We have conducted a historical analysis spanning from ancient times until the end of the colonial period, using archaeological evidence, information from ancient texts, and other published literature. By identifying historical trends, we have provided valuable insights and guidance for decision-makers on how to leverage Sri Lanka’s strategic location and capitalise on its resources for future socioeconomic development.
Keywords: Geopolitics, Indian Ocean Trade, International Trade, Sri Lanka, Strategic Location
Volume 16, Issue 1
June 30, 2025
Pages: 127-159
DOI:https://doi.org/10.4038/cbj.v16i1.207
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Suggested citation:
Tennakoon, H. (2025). Small nations, big impact: The significance of Sri Lanka’s strategic position in Indian Ocean trade and geopolitics. Colombo Business Journal, 16(1), 127-159. https://doi.org/10.4038/cbj.v16i1.207
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Hemamali Tennakoon
Brunel Business School, Brunel University of London, United Kingdom
hemamali.tennakoon@brunel.ac.uk
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