The power struggle between India and China is significant in contemporary world politics.Since2009 military victory of Sri Lankan government against separatist movement of Tamil minority, its relationship with India turned out to be controversial as the latter emphasized for political solution while China addresses economic development of the county which was more attractive for then government and majority Sinhalese masses. On above context it is expected to find out the implications of China and Sri Lanka relationship on Indian aspirations and one of the main objectives is to identify India and China’s geostrategic interests and another objective is to identify China’s strategies and their implications on India. To that end documentary analysis and descriptive analysis has been used on secondary data gathered from data triangulation method. Descriptive statistics describe main features of the data in the study providing simple graphical analysis. China invested heavily in Sri Lanka and other rim states to achieve all round opening up and establishing landscape of economic cooperation. China’s overwhelming intimacy with Sri Lanka in terms of trade, investments and diplomatic relations creates fear psychosis in India so as to consider China as a threat to India. Indian continuous emphasis on political solution for Sri Lanka’s ethnic crisis resulted Sri Lanka’s tilt towards China who dint interfere its domestic politics. Indian aspirations over Sri Lanka indicate comparatively unstable condition with China. Sri Lanka needs to reevaluate Chinese projects and should have second thought on the role of India for a balanced triangular relationship.