The Hon. (Dr.) Harshana Suriyapperuma - Deputy Minister of Finance and Planning

¶ 01 Hon. Speaker, on behalf of the Minister of Finance, Planning and Economic Development, I respond to Question No. 127/2024.

¶ 02 (a) (i) Since the Presidential Election held in 2024, the Central Bank of Sri Lanka has awarded the annual currency note printing order for 2024 on 20.10.2024. However, no consignment thereof has yet been received by the Central Bank of Sri Lanka. Accordingly, no notes have been printed since the Presidential Election in 2024 up to now. (ii) Not applicable. (iii) Not applicable. (iv) Not applicable. Generally, under Section 44 of the Monetary Law Act, No. 16 of 2023, the exclusive right and authority to issue currency in Sri Lanka is vested in the Central Bank. Under Section 52, all notes and coins unfit for circulation for any reason shall be withdrawn by the Central Bank and, as soon as practicable and subject to regulations made by the Monetary Board, shall be replaced by new notes and coins fit for circulation. Further, under Section 54, to ensure an adequate supply of currency notes and coins, the Central Bank shall maintain and manage working stocks of currency. (v) In terms of Sections 44 and 50 of the Monetary Law Act, the Central Bank has the authority to enter into agreements, in Sri Lanka or abroad, for the printing of notes and minting of coins. Accordingly, approvals for note printing and coin minting orders are granted by the Monetary Board of the Central Bank of Sri Lanka. (vi) Under Section 47(1) of the Act, all currency notes and coins issued by the Central Bank are legal tender in Sri Lanka for the payment of any amount. Under Section 47(2), all transactions between residents shall be in Sri Lanka Rupees unless otherwise authorized under the Foreign Exchange Act, No. 12 of 2017. Therefore, currency notes and coins are used to meet domestic transactional demand.

¶ 03 (b) (i) Yes. Subject to the Central Bank’s statutory duty to ensure adequate currency for the economy, future production and issuance of notes and coins will be based on demand. (ii) Based on the Central Bank’s continuous demand forecasts, annual or semi-annual orders will be placed for the required quantities of notes and coins.

¶ 04 (c) Does not arise.