Bitter Melon
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Our power projection has obviously left much to be desired of. However, the reason I differentiated Pak from Sri Lanka is the obvious shared history and the religious element that seems to enable extreme behavior. These factors tend to disrupt common sense thinking and lead to atrocious decision making.
It just seems silly for the Sri Lankans to sell themselves just to try to rival India in any meaningful way. Maybe its the LTTE and its aftermath for that does it for them.
Anyway, I am not really bothered about the people of either of these countries. Whom they elect (at least in case of Sri Lanka) and what decision their leaders take is their business. I am just wondering about the impact on India.
Sri Lankans were antagonistic to India long before LTTE. They helped Pakistani aircrafts refuel en route to East Pakistan during the 1971 conflict. Contempt for Indian political figures and by extension India were a universal fact then.
Nothing much will happen as far as effect on India goes. They will thumb their noses to the Chinese once they are not able to pay the debt like Venezuela did but not before they undergo significant amount of pain.