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Currency Management
Parameters for Sorting of Currency Notes of Sri Lanka


In terms of section 49 of the Monetary Law Act (MLA) No. 58 of 1949, the Central Bank of Sri Lanka (CBSL) has the sole authority to issue currency notes and coins in Sri Lanka. Accordingly, CBSL is entrusted with the responsibility of ensuring the availability of currency notes and coins in required volumes and maintaining the integrity and quality of currency in circulation.

Quality currency notes help distinguish between genuine notes and counterfeits. Further, it creates a better image of the country and promotes efficient and effective note processing activities.

The quality of a currency note can deteriorate due to the frequency of usage and the manner in which they are used. Such deteriorated currency notes should be identified and replaced with new currency notes regularly in order to maintain the quality of currency notes in circulation.


“Parameters for Sorting of Currency Notes of Sri Lanka” is introduced to provide a clear benchmark and standard for determining the quality of currency notes that should be in circulation and to guide Licenced Commercial Banks (LCBs) to separate currency notes into fit (serviceable) or unfit (unserviceable) categories. Accourdingly, all LCBs shall verify and sort currency notes deposited by customers to ensure the genuineness and the quality of the notes before reissue.


The Central Bank of Sri Lanka maintains and supplies the commercial currency with adequate currency notes / coins in order to meet the demand from the public and businesses and returns them to the Bank in the form of bank deposits. These currency notes are verified by the Currency Verification, Counting and Sorting System (CVCS) through high-speed note processing machines and the unfit notes are shredded online. Serviceable notes are processed on line and re issued to commercial banks. Notes counted by cashiers using desktop counting machines are also issued to commercial banks for circulation, while unserviceable notes are destroyed by the Bank.


Fit (Serviceable) Currency Notes
Fit or Serviceable means genuine currency notes in good condition which are not exceeding the sorting parameters introduced by this publication and hence they can be recirculated.

Unfit (Unserviceable) Currency Notes
Unfit or Unserviceable means the currency notes which have exceeded the sorting parameters and hence unsuitable for recirculation.

Currency Note Quality Standards

In order to maintain the quality standards of the currency notes, currency notes shall be kept in circulation only if they are evaluated as fit. The fitness test is carried out by visual or machine inspection of the currency notes.

A Currency note is considered as fit for further circulation if it is:
• Genuine
• Free from excessive soiling
• Not limp or faded
• Free from stains, tears, holes, or missing portion
• Free from significant defacing
• Not damaged

If a currency note has exceeded any one of the following parameters, it is considered as
unfit for recirculation.

Parameters for Sorting of Currency Notes of Sri Lanka >>

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