Unnerved by growing Chinese influence in Sri Lanka, India is seeking to strengthen ties with the Colombo government through economic cooperation as the Indian Ocean island nation assumes increasing importance as a regional trading hub in one of the world’s busiest sea lanes.

Increased international interest in the Indian Ocean comes at a convenient time for Sri Lanka, as the country continues to recoup after the end of its decades-long civil war which ended in 2009. The island nation is being courted (and courting in turn) by various major powers, each seeking a stake in developing Sri Lanka’s strategic location midway between the Middle East and the Straits of Malacca. While opportunities present themselves, all this attention also comes with its own set of complications.

HAMBANTOTA, Sri Lanka — The answer to why a state-of-the-art port exists in a remote part of one of Asia’s smallest nations lies a short distance out in the Indian Ocean.

A critical sea lane is a reason China built the little-used Hambantota port in the first place, and why — besides a long-­standing regional humanitarian mission — the U.S. military was keen to visit for nearly two weeks this month.

Analysts specialized in predicting the course relations between India and China may take, have recently followed a scenario unravelling around the small town of Hambantota, located in the south of the Republic of Sri Lanka (formerly Ceylon).

India’s Prime Minister, Narendra Modi, has been relatively quiet when it comes to Tamil issues in Sri Lanka, although now would be a good time for the prime minister to reconsider his low-key approach. Modi visited Sri Lanka in March 2015, the first time an Indian prime minister had travelled to the island nation in nearly thirty years. He even went to Jaffna in the country’s north, a symbolically significant move.

It would not necessarily be a bad thing if healthy competition between China and India in the Sri Lankan market could be further stirred up. While China and Sri Lanka ramp up efforts to finalize a free trade agreement (FTA) this year, India is pushing for the signing of the Economic Technology Cooperation Agreement with Sri Lanka to broaden the scope of its existing FTA. It seems that neither China or India wants to be left behind in boosting its presence in the island nation.