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1. Introduction 2. Sri Lanka and the 21st-Century Maritime Silk Road2.1 The Unique Geograpical Location of Sri Lanka in the Silk Road2.2 Strategic Considerations of Sri Lanka's Participation in the 21 st-Century Maritime Silk Road2.3 The Attitudes of the New Sri Lankan Government towards the 21 st-Century Maritime Silk Road 3. Dynamics of the Sri Lankan Economy and Potential MacroeconomicRisks3.1 Basic Features of the Sri Lankan Economy3.2 The Structural Problems of Sri Lanka's Economy3.2.1 Sri Lanka's Fiscal Deficit Risks3.2.2 External Debt Risks3.2.3 Internal and External Imbalances and Risks of Policy Failure3.3 Economic Policy Challenges for the New Government of Sri Lanka 4. Sri Lanka's Diplomatic Balancing Strategy4.1 Sri Lanka's Relationship with India4.2 Sri Lanka's Relationship with Japan4.3 The New Government's Policy Shift and Implications for China 5. The Negotiation of Sino- Sri Lanka FTA5.1 The Role of Sino- Sri Lanka Free Trade Agreement5.2 The Negotiation Progress of the Sino-Sri Lanka Free Trade Agreement 6. Behind the Interruption of the Colombo Port City Project6.1 The Colombo Port City as a Flagship Project of the 21 st-Century Maritime Silk Road6.2 Reasons of China's Port City Interruption6.3 Prospect of the Colombo Port City Project 7. Conclusions Referenees