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• What is a Financial Crisis.

• Examples of Financial Crisis

• Reasons for Financial Crisis in Sri Lanka.

• How financial Crisis Effected in Sri Lanka

• Measures that has been taken to control Financial Crisis

• Recovery of the Sri Lankan Economy


What is Financial Crisis.
*A situation which the value of financial institutions
or assets drop rapidly.

*A financial crisis often associated with a panic or a


run on the banks ?
* The Argentinean Banking crisis of 1980–82

* The Chilean Banking Crisis during 1981–83

* The Mexican Economic Crisis during 1995–97

* The Asian Financial Crisis in 1997–98

* The US Sub-prime Mortgage Crisis Starting from 2007


* The US crisis was the latest * The SL Nationals who have
financial crisis which impacted on migrated abroad for employment
economic growth of Sri Lanka. couldn't send their valuable
foreign currency.

* Funds Invested by Foreigners in * The export of Tea, Rubber,


Treasury Bonds & Bills flowed out Coconut, Spices, Jewelry,
from Sri Lanka. Garments have badly affected.
* Exports Declined

* Economic Growth

* Tourism Sector

* Unemployment

* Inflation
* Exchange Control Measures.
(The restrictions on movements of foreign capital flows in Sri Lanka
such as permitting the deposits in foreign currencies under specific
schemes)

* Bank Supervision Measures.


The issuance of some directions to financial institutions
The Strict guidelines for maintenance of Nonperforming loans (NPL)
The CBSL also placed limits on the borrowings of Commercial Banks.

* Other Measures.
(Under its monetary Policy, the CBSL took several measures.)
* Thedrops in exports and Imports in
2009 has been recovered in 2010.

* The banking sector was resilient to


external and domestic developments

* Unemployment rate declined to 4.9%


in 2012 and economic Growth 8% in
2010.

* External reserve Position improved.


Here we attempted to explain,
(The basis of Financial Crisis, Types of Financial Crisis & some
examples of Financial Crisis.)

But as per our main topic "Financial Crisis In Sri Lanka we


mainly focused on the Reasons of Financial Crisis In Sri
Lanka & briefly discussed the affected areas.

Later we discussed the Measures that has been taken by the


Government & the Recovery of the Sri Lankan economy.

As a conclusion,
we can't completely avoid the Financial Crisis, but
through the continuous implementation of appropriate polices
we can avoid the adverse impacts.
Presented By :-
- - O.H.Azeem Omer.
- K.G.Mahalekam.
- H.M.J.B.Herath.
- P.H.M.B.S.B.Abeyrathna.
- U.J.C.Kumarasinghe.