Abstract

In recent years, Sri Lanka has undergone a profound political and economic crisis, culminating in the exodus of President Gotabaya Rajapaksa in July 2022. This article examines the crisis through the International Relations (IR) theory framework, specifically Realism, which emphasises state power, self-interest, and survival. This study investigates domestic and international reasons leading to the deterioration of governance and economic stability, encompassing internal mismanagement, reliance on foreign loans, and regional geopolitical rivalry. Particular emphasis is placed on the roles of China and India, which capitalised on the crisis to advance their strategic objectives in the Indian Ocean region. Ultimately, conclusions are derived for small states facing analogous issues, highlighting the importance of debt diversification, effective governance, and equitable diplomacy. Keywords: Political crisis, governance collapse, foreign loans, geopolitical competition, economic mismanagement.