As a 'long term' foreign resident, I have to say that I have always found Cypriots friendly and helpful; treat with respect and get respect. However, my Sri Lankan friends are most certainly treated and regarded differently - it's a shame - most are hard-working and law abiding but their skin colour and culture sets them apart in many people's eyes.
As an aside, most British people I have met in Cyprus (it may be different in the UK) are pro-Cypriot and non-racist; it seems to be only the other Brits they do not get along with!
Lana