A new great game has begun between India and China to bring Maldives and Sri Lanka under their respective sphere of influence in the Indian Ocean region. After Myanmar and Bangladesh, to complete the "arc of influence" in South Asia, China is determined to enhance military and economic co-operation with Maldives and Sri Lanka. China's ambition to form a naval base at Marao in the Maldives, its recent entry into oil exploration business in Sri Lanka, development of port and bunker facilities at Hambantota, strengthening military co-operation and boosting bilateral trade with Colombo, are all reasons for worry to Indian policy makers.