Currency Management
The Central Bank of Sri Lanka has the sole right and authority to issue currency in Sri Lanka which includes both currency notes and coins as stipulated in the Central Bank of Sri Lanka Act No.16 of 2023. In fulfilling this task, the Bank is entrusted with designing, printing/minting and distributing of Sri Lanka's bank notes and minting of coins. The purpose of currency management is to build and maintain public confidence in the currency by preserving its value and integrity and by making available adequate stocks to meet the demand for currency, which is essential for the proper functioning of the economy.
Design and Production
It takes several months to design notes / coins when it is a new series. Notes / coins are designed by persons appointed by the Central Bank or the note printers / mints and it is mandatory to obtain approval from the Governing Board of the Central Bank and the concurrence of the Minister of Finance for the denominations, designs and other characteristics for bank notes and for prescribing metals, weight, size, design, denominations and other characteristics for coins. Once the designs are approved, the Bank contracts the printing of the notes / minting of coins to a currency note printing / coin minting company after adhering to approved procurement procedures and guidelines.
Distribution
The Central Bank of Sri Lanka maintains and supplies adequate currency notes / coins in order to meet the demand from the public and businesses while commercial banks return currency to the Central Bank of Sri Lanka in the form of currency deposits. These currency notes are verified by the Currency Note Processing System (CNPS) through high-speed note processing machines and the unfit notes are shredded online while serviceable notes are processed and reissued to commercial banks. Notes counted using desktop counting machines are also issued to commercial banks for circulation, while unserviceable notes are destroyed by the Central Bank of Sri Lanka.
Clean Note Policy
In order to ensure notes in circulation are of good quality Central Bank of Sri Lanka implemented the clean note policy and conduct awareness programmes to educate public on good handing practices of currency. As a result the quality standards of currency in circulation have improved to a satisfactory level.
Good Handling Practices of Currency Notes
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• Keep notes in the wallet/purse without folding/crushing according to the order of denomination to identify and handle them easily. • Do not place notes in places where they can be exposed to dampness or heat conditions or harm by insects. • Do not touch or handle notes with dirty hands. • Do not damage or deface notes by cutting, drawing or writing on notes. • Use clean notes for transactions and let others feel how concerned you are about cleanliness. • Clean notes build and preserve a good image of our nation. |
Good Handling Practices of Coins
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• Maintain a special container at home to keep coins received on daily transactions. • Carry those coins in the container for daily transactions. • Exchange accumulated coins with a grocery store from where you purchase regular needs or deposit with banks or Central Bank Head Office. • Educate children of the importance of financial discipline for a successful future. |