Abstract
The unprecedented financial crisis of the South Asian island country Sri Lanka proved that lacking economic policy framing and implementation, corruption, misgovernance, and overdependence on foreign debts are equally very dangerous for the economy of any developing country. The civil war-affected Sri Lankan economy had suffered due to a lack of investment for a long time. The infrastructural damages due to the civil war made the country’s economy to weaken. The acute financial crisis in Sri Lanka made some unexpected consequences. The financial uncertainty has broken the law and order of the island country. The president and prime minister have left the country, and the international funding agencies have not given any commitment to bail out the country from this situation. This chapter aims to critically delineate the causes and consequences of the Sri Lankan financial crisis. This chapter will further attempt to investigate the response of the international community, and funding agencies, especially Japan, to the Sri Lankan financial crisis.
Keywords
- Sri Lanka
- Financial crisis
- Civil war
- Misgovernance
- Corruption
- Foreign debts
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Nandy, D., Abdullah-Al-Mamun, Akon, S. (2023). Financial Crises in Sri Lanka: In Search of Reasons, Sufferings, and Way Forward. In: Gupta, C.M. (eds) Financial Crimes. Springer, Cham. https://doi.org/10.1007/978-3-031-29090-9_4
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