The Central Bank of Sri Lanka has reportedly placed an order to purchase a specialised machine valued at Rs. 700 crore (approximately seven billion rupees) from German company Giesecke+Devrient (G&D) to detect counterfeit and soiled currency notes in financial transactions. The move has drawn attention due to its unusually high cost and the fact that the identity of the local representative facilitating the purchase has not been officially disclosed, though sources suggest the intermediary is a prominent businessman.
At present, the Central Bank already operates a similar machine for currency verification purposes. This has led to internal discussions among some economic experts within the institution, who are questioning the need for an additional system at such a significant expense, especially at a time when financial transactions are increasingly being conducted through low-cost digital platforms and code-based payment systems.
Further scrutiny has emerged regarding the approval process for the purchase. Although the Central Bank of Sri Lanka maintains that it functions as an independent institution, existing regulations reportedly require any procurement exceeding Rs. 100 million to be approved by the Cabinet through a designated tender committee. However, it remains unclear whether the necessary approvals have been obtained for this transaction, according to Central Bank sources, raising additional concerns about procedural compliance and transparency in the decision-making process.
