By: Staff Writer
October 30, Colombo (LNW): Sri Lanka’s Cabinet has approved a major overhaul of the Central Bank’s currency management system, awarding a contract to Giesecke & Devrient Asia Pacific Ltd., a Hong Kong-based subsidiary of the global currency technology group Giesecke+Devrient (G+D), to modernize the island’s banknote operations, monitoring, and circulation management.
The decision, announced by Acting Cabinet Spokesman Vijitha Herath, follows a two-stage international procurement process aimed at selecting a specialized institution with proven expertise in secure currency systems. Out of four initial bidders, Giesecke & Devrient emerged as the most qualified after a comprehensive technical and financial evaluation conducted by the Higher-Level Standing Procurement Committee.
The proposal was submitted by President and Finance Minister Anura Kumara Dissanayake and approved by the Cabinet on Monday, marking a significant step toward the Central Bank’s broader modernization strategy.
According to officials, the contract will focus on enhancing the Central Bank’s capacity for real-time currency monitoring, improving operational efficiency, and ensuring greater security and durability of banknotes. It will also introduce digitalized tracking and forecasting systems to better manage cash demand, reduce counterfeiting risks, and optimize the cost of currency printing and distribution.
Giesecke & Devrient, headquartered in Munich, Germany, operates across 30 countries and provides secure currency and identity solutions to more than 145 central banks worldwide. Its Asia-Pacific arm, based in Hong Kong, has supported central banks in Singapore, Thailand, and the Philippines in adopting smart cash circulation and high-security printing systems.
Analysts say Sri Lanka’s move reflects an urgent need to modernize its cash management infrastructure, which has faced challenges including rising currency printing costs, aging banknote stock, and inefficiencies in distribution networks. The Central Bank spends nearly Rs. 7–8 billion annually on note printing, including imports of high-security paper and inks.
Officials emphasize that the partnership will also enhance currency traceability and data analytics, helping the Central Bank detect counterfeit flows and monitor circulation patterns more effectively. The system will integrate with the institution’s ongoing digital currency management initiatives, paving the way for a more transparent and secure monetary framework.
The project, to be implemented in phases starting early 2026, is part of Sri Lanka’s broader financial-sector modernization agenda supported by international partners and is expected to improve public confidence in the stability and integrity of the rupee.
