History

HistoryThe British pound became Ceylon's official money of account in 1825, replacing the Ceylonese rixdollar at a rate of 1 pound = 13⅓ rixdollars, and British silver coin was made legal tender. Treasury notes denominated in pounds were issued in 1827, replacing the earlier rixdollar notes. Rixdollar notes not presented for exchange were demonetized in June 1831.

The Indian rupee was made Ceylon's standard coin 26 September 1836, and Ceylon reverted to the Indian currency area. Pound-denominated treasury notes continued to circulate after 1836, along with the rupee. The legal currency remained British silver and accounts were kept in pounds, shillings and pence. However, payments were made in rupees and annas at the "fictitious par" (fixed accounting rate) of 2 shillings per rupee (i.e., 1 pound = 10 rupees).

The Bank of Ceylon was the first private bank to issue banknotes on the island (1844) and Treasury notes were withdrawn in 1856.

The Indian rupee was formally established as the unlimited legal tender 18 June 1869. The rupee was decimalized 23 August 1871. Thus, the rupee of 100 cents became Ceylon's money of account and sole legal tender effective 1 January 1872, replacing British currency at a rate of 1 rupee = 2 shillings 3 pence.

Coins

In 1872, copper ¼, ½, 1 and 5 cents coins dated 1870 were introduced, followed in 1892 by silver 10, 25 and 50 cents. Production of the ¼ cent ceased in 1904. The large, copper 5 cents coins was replaced in 1909 by a much smaller cupro-nickel coin which was square with rounded corners. In 1919, the fineness of silver used was reduced from .800 to .550.

Between 1940 and 1944, a wholesale change in the coinage was carried out. Production of the ½ cent ceased in 1940, with bronze 1 cent introduced in 1942. Nickel-brass replaced cupro-nickel in the 5 cents in the same year and replaced silver in the 25 and 50 cents in 1943. In 1944, nickel-brass, scalloped shaped 2 and 10 cents coins were introduced.

In 1963, a new coinage was introduced which omitted the monarchs portrait. Coins issued were aluminium 1 and 2 cents, nickel brass 5 and 10 cents and cupro-nickel 25 and 50 cents and 1 rupee. In 1978, aluminium replaced nickel-brass in the 5 and 10 cents. Cupro-nickel 2 rupees and aluminium-bronze 5 rupees coins were introduced in 1984.

The obverse of the coins issued since 1963 carry the Armorial Ensign of Sri Lanka. The reverse of the coin the value in numerals and in Sinhala, Tamil and English below and year of issue at the bottom with SRI LANKA in Sinhala on top. On 14 December 2005, the Sri Lanka central bank issued a new series of coins in the denominations of 25 and 50 cents, 1, 2 and 5 rupees. The lower denominations of 1, 2, 5 and 10 cents, although legal tender, are not seen in circulation and not in general issued by banks.

The observe and reverse designs of the new coins remained identical to the existing circulating coins of the same denominations. However their weights and alloys have been changed for easy identification purposes.

On 5 April 2010 Sri Lanka replaced the 10-rupee note with a coin.

Commemorative coins

The Central Bank of Sri Lanka has issued commemorative coins since 1957.

On December 15, 2010, to mark the 60th Anniversary, the Central Bank of Sri Lanka issued a Frosted Proof crown size multi-colour silver commemorative coin in the denomination of Rupees 5000. It was the first multi-colour coin issued by the Central Bank.

Banknotes

Portraits of former Sri Lankan prime ministers and the incumbent president Mahinda Rajapakse have graced the fronts of Sri Lankan bank notes, while the backs have featured Sri Lankan fauna and flora, Sri Lankan landscapes and industries, and images depicting Sri Lankan culture, history, and achievements.

In 1895, the Government of Ceylon introduced its first paper money in the form of 5 rupee notes. These were followed by 10 rupee notes in 1894, 1000 rupee notes in 1899, 50 rupee notes in 1914, 1 and 2 rupee notes in 1917 and 100 and 500 rupee notes in 1926. In 1942, emergency issues for 5, 10, 25 and 50 cents were introduced and issued until 1949.

In 1951, the Central Bank of Ceylon took over the issuance of paper money, introducing 1 and 10 rupee notes. These were followed in 1952 by 2, 5, 50 and 100 rupee notes. The 1 rupee notes were replaced by coins in 1963.

From 1977, banknotes were issued by the Central Bank of Sri Lanka. 20 rupees notes were introduced in 1979, followed by 500 and 1000 rupees in 1981, 200 rupees in 1998 and 2000 rupees in 2006. Sri Lankan banknotes are unusual in that they are printed vertically on the reverse. The 200 rupee note is printed on a polymer substrate. Banknotes are printed by the De la Rue Lanka Currency and Securities Print (Pvt) Ltd, a joint venture of the Government of Sri Lanka and De La Rue, a printing company in the United Kingdom. In 2011, a series is to be issued to commemorate the country's 60th anniversery.

Heritage series

The Heritage Series saw many revisions throughout its life since 1991 up to 2010. The 1995 revision had an enhanced latent image at the center bottom of obverse sides. The 2001 revision added wider metallic strip to the 500 and 1000 rupee notes.

Current series

On February 4, 2011, The Central Bank of Sri Lanka (CBSL) issued a new series of currency notes on the theme “Development, Prosperity and Sri Lanka Dancers” for circulation.^[3] This is the 11th series of currency notes of the Central Bank to be issued. The new series consists of six denominations Rs. 5,000, Rs. 1,000, Rs. 500, Rs. 100, Rs. 50 and Rs. 20.^[4] The high value Rs. 5000 note issued for the first time in the history of the Central Bank is being introduced to facilitate expansion in transactions that has taken place with the growth of Sri Lanka's