Sri Lanka central bank extends deadline for bad banknotes
ECONOMYNEXT – Sri Lanka’s central bank has extended a deadline to exchange mutilated currency notes to March 31, following difficulties faced by the public in exchanging noted by a December 31 deadline.
"Central Bank of Sri Lanka (CBSL) in considering the immense requests from the general public and the difficulties that the general public is facing in exchanging willfully defaced currency notes at Licensed Commercial Banks (LCBs), has decided to extend the time period for such exchange of currency notes at LCBs up to 31 March 2018," the monetary authority said in a statement.
There had been concerns that the independence of the central bank had been undermined by the President, after a statement that he had given instructions for the central bank to extend the deadline.
However sources at the central bank said the decision extend the deadline had been made yesterday after learning of the problems faced by the public.
They were unware that the President had tried attempted to undermine the independence of the monetary board by issuing "special instructions" to the central bank. (Colombo/Dec31/2017)