Sri Lanka’s Foreign Policy amid Geopolitical Transformations: 1990-2024 – Part III

Since the 16th century, global power has largely been concentrated in the West, driven by European colonial expansion, industrialisation, and later, US dominance.

- BY GAMINI KEERAWELLEA

However, in the 21st century, this balance is gradually yet profoundly shifting. This global power shift is evident in four key trends that have shaped the post-Cold War era: the relative decline of the United States, a renewed Cold War-style rivalry between China and the US, Asia’s resurgence, and the US policy shift—its pivot to Asia and the Indo-Pacific. Sri Lanka’s foreign policy must navigate these structural shifts, which carry significant implications for economic partnerships, security alliances, and geopolitical positioning.

Relative Decline of the United States

The relative economic and political decline of the United States, in the new millennium, marked a pivotal turning point in global power dynamics. The US leadership interpreted the end of the Cold War as an ideological victory for liberal democracy. The Cold War did not end through a violent military confrontation, but rather as a result of the voluntary dissolution of the Soviet Union. In the immediate aftermath, the United States emerged as the world’s sole superpower, the self-styled leader of the global order. However, over time, the US began to face mounting challenges from both internal and external factors. The 2008 financial crisis, the rise of Islamic fundamentalism, the protracted wars in Iraq and Afghanistan, and increasing domestic political polarization all contributed to a decline in US global influence.