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Central Bank clarifies its position on wilfull defacement of currency notes

Press Release: The attention of the Central Bank of Sri Lanka (CBSL) has been drawn to misinterpretation of the facts contained in the newspaper advertisements published by the CBSL in implementation of its Clean Note Policy. The Clean Note Policy has been introduced by the CBSL aiming at maintaining the quality standards of the currency notes and thereby helping to distinguish between genuine notes and counterfeits. It is also expected through this policy to enhance image of the country and promote efficient and cost effective currency notes processing activities. Wilfull mutilation, alternation or defacement of currency notes are offenses punishable under the Monetary Law Act.
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Moreover the CBSL has to increase its note printing to replace such willfully mutilated, altered or defaced currency notes requiring it to incur large amount of public funds which otherwise could have been spent for more meaningful purposes. The CBSL has no obligation to entertain claims in respect of deliberately mutilated, altered or defaced currency notes.
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Accordingly the advertisements under reference were published to educate the general public that after 31 December 2017, no fresh currency notes will be issued in exchange of such wilfully mutilated, altered or defaced currency notes. However, the CBSL wishes to inform the general public that currency notes that are not wilfully mutilated, altered or defaced but damaged due to normal wear and tear during circulation can continue to be exchanged at the CBSL and Licensed Commercial Banks as is the current practice.
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The CBSL also wishes to invite the general public to assist to preserve the value and integrity of the country’s legal tender by adhering to the Clean Note Policy.
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