Since the Dalai Lama became the head of the Tibetan state, he became the political head. As with any politics, Sri Lanka and other countries have to be politically correct and on the right side of the world economic powers. So, they would rather avoid any confrontation with China over the Dalai Lama issue. So, the Dalai Lama and the CTA has to solve this issue and obtain a dialogue with China. More countries will follow in Sri Lanka's footsteps, and the Dalai Lama may find himself very unwelcomed in a lot of countries.
So, the Dalai Lama and the CTA will have to show their genuine and good intention to China to turn the tide.
As for the Dorje Shugden issue, CTA and the Dalai Lama will have to reconsider. Their confrontational attitude is not going to get them anywhere except maybe look good in the Tibetans eyes. Also, as I've always maintained, it is nothing but a spin to distract the poor Tibetans from the real issue which is the inability of their government in exile to do anything to bring them home to Tibet.