The Treaty of Westphalia paved the way for the emergence of the modern Nation-State consisting of four major components of the state: territory, population, sovereignty, and geography, out of which sovereignty and security are treated as the major components of the Nation States. At the same time, the importance of traditional security that dictates terms of territory security through military and armed force remains to shrink and be put back by non -traditional security like the science, technology, and economy in the 21st-century modern globalized world. So it is not wondering to say present world territory, as well as the economy, plays a key role in prolonging of security of a nation, and the breach of this puts threats towards the nation’s security, the appreciable example is Srilnka’s Financial crisis. This financial crisis not only leans an internal security threat in the country but brings political instability the result being Srilanka’s downfall in world politics. In this scenario, this paper aims to examine security threats through the financial crisis by taking into account the study of the financial crisis in Sri Lanka and aims to discuss India’s response to the tropical island nation of Srilanka. In this paper historical, analytical, and descriptive methods will be used, and secondary data sources like newspaper analysis, journal articles, web pages, blogs, etc taken into consideration for further analysis.