Exchange altered notes by Dec 31- CBSL

The Central Bank has requested the general public to exchange, mutilated or altered currency notes in their possession, through a licensed commercial bank, on or before the 31st of this month.

Full Statement:

The Central Bank of Sri Lanka (CBSL) has drawn attention of the general public for implementation of its Clean
Note Policy and regulation on the willfully mutilation, alteration or defacement of Sri Lanka currency notes. The
Clean Note Policy has been introduced by 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 the efficiency of processing currency notes.
Willfully mutilation, alteration or defacement of Sri Lanka currency notes is an offence under the Monetary Law
Act No. 58 of 1949, and is punishable by imprisonment or fine or both. Under the Regulation E of the Monetary
Law Act, no claim in respect of the willfully mutilated or altered notes shall be entertained and such notes shall
be retained by CBSL. The holder of these currency notes will have to suffer the loss of face value of such notes.
Moreover, 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. CBSL, therefore, has no obligation to entertain claims in respect of deliberately mutilated,
altered or defaced currency notes.
Accordingly, CBSL advised and requested the general public to refrain from practice of mutilation, alteration or
defacement of Sri Lanka currency notes and to exchange such currency notes available on their hand with the
nearest branch of Licensed Commercial Banks on or before 31.12.2017. However, CBSL wishes to inform the
general public that currency notes that are not willfully mutilated, altered or defaced but damaged due to normal
wear and tear during circulation can continue to be exchanged at CBSL and Licensed Commercial Banks as is
the current practice.
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.