Ancient Sri Lanka was known by many names, including the well-known epithet, “the pearl of the Indian Ocean.” More recently, it has been termed a “bead” in China’s “String of Pearls”. China’s accelerated economic growth and military modernization has proclaimed to the world that the former “sleeping giant” is awakening. The 21st century has been referred to as the “century of the Indian Ocean”. In this context, China’s recently developed strategic partnerships with the countries of the Indian Ocean region have fuelled the suspicions and apprehensions of both regional and world powers. With the end of Sri Lanka’s civil war, her realignment with China is a fact which has been noted globally and attracted a great deal of attention. This book analyses the trends in economic, military and diplomatic relations between the two countries and evaluates the systematic expansion of China’s role in post-war Sri Lanka. It also looks at the reasons behind this expansion and the advantages and the disadvantages which this developing relationship could pose for each country.