Defaced currency notes worthless after Dec 31 | Sunday Observer

Defaced currency notes worthless after Dec 31

Adhering to their previous notice, the Central Bank will not accept any altered or defaced currency notes and it will no longer have any value from January 1, Deputy Governor, Dr. Nandalal Weerasinghe told the Sunday Observer. In June this year, the Central Bank gave notice to the public that banks and the public should not accept defaced or altered currency notes from next year, as it will not bear any value.

The Central Bank of Sri Lanka (CBSL) requests the public to exchange willfully altered or defaced currency notes from a commercial bank immediately. Such notes will not be accepted by commercial banks after December 31.

“This step has been taken to discourage the public from writing on currency notes and to encourage the circulation of clean notes,” said Dr. Weerasinghe.

Under the Monetary Law Act No. 58 of 1949, mutilation, alteration or defacement of currency notes is an offence punishable by imprisonment or a fine or both.

Dr Weerasinghe said that despite the existence of this law, it was not implemented thus far.

“This motion will see the implementation of that law since a loss of value of currency notes will disincentivise the public from defacing it,” he said.

Dr Weerasinghe added that the CBSL has given notice to the public for more than a year, which provided ample time to exchange altered or defaced currency in their possession.