Even today, Sri Lanka has become a point of interest in the Indian Ocean due to geo strategically attractive position. Because Sri Lanka being a small state strategically placed between two powerful states India and China. The research topic is, an analytical study examines Sri Lanka’s geostrategic significance within the intensifying power rivalry between India and China. This research problem is Why is Sri Lanka’s geostrategic location important in the ongoing power rivalry between India and China? The main purpose of this writing research paper critically examine how Sri Lanka’s geostrategic influences and shapes the power rivalry between India and China. In additional sub purposes are examine the importance of Sri Lanka’s geographical and maritime contexts, specially within the Indian Ocean Region, analyze the strategic values of China and India such as military, economic and political interests in Sri Lanka., compare India- China strategic competition in Sri Lanka and how Sri Lanka balance its relationships both India and China. The writing of this article uses qualitative method. Under the qualitative method using literature resources for this. Specially analysis technique based on previous researchers’ findings. The island of Sri Lanka is a main center for communication, global trade naval movement military and Maritime security in Indian Ocean. After analyzing data, these findings can be identified regarding why Sri Lanka’s geographic location is important to the power rivalry between India and China.