There is increased competition between the global big powers in the India Ocean. The four main protagonists are India, the United States, China and Japan. The challenge to Sri Lanka is how to maximize the benefit to itself from this situation without being overwhelmed by pressures that may be brought to bear upon it. Sri Lanka can become a beneficiary of competition as it has in the case of the USD 480 million grant from the Millennium Challenge Corporation of the United States. However, each of the global powers will see a threat to itself if Sri Lanka were to favour one over the other. The threat perception will grow if Sri Lanka were to permit any one of them a foothold within the country, especially in military terms, that is significantly bigger than what they already have.