This chapter analyzes how Sri Lanka has developed a diversified hedging strategy mitigate attempts at Indian hegemony and to navigate the intensifying contest between China and the US in Asia. The chapter argues, using Putnam’s two-level-games theory, that the country’s narrow domestic win-set, which was reshaped by the recent electoral victory of the National People’s Power (NPP) part, also impacts its external choices. The complexities of Sri Lanka’s foreign policy choices are also discussed using the case studies βof the 2016 SAARC summit, the balancing acts around Hambantota and Trincomalee, maritime security cooperation, and the regional free trade agreements. The chapter proposes three actionable pathways that Sri Lanka can take to improve regionalism, i.e., a Track-1.5 dialogue, a digital mini-lateral, and a Colombo supply-chain initiative, and looks at the role of the media in widening domestic support for regional cooperation. These findings provide a template for small states seeking strategic autonomy amid great-power rivalry.