Sri Lanka is a country with a long history and a similarly
long and rich economic history. A study of that history will doubtlessly prove
fruitful not only for economists but for everyone in the society. Coins used
through different time periods of a country play an important role when
studying the history of that country. Although small in size, a coin has the
ability of giving a wealth of information about the economic and cultural
history of the country where it was used, through signs that remain on them.
In the past, Sri Lanka managed to garner the attention of
the world partly due to the fact that it was uniquely placed at the center of
the Silk Road that spanned from Far East Asia to Europe. It was also a doorway
to entering the Overland Silk Road. Traders and explorers from the East and
West would converge on this island. Sri Lanka functioned as a trading center
for these travelers. There are Greek, Roman and Chinese texts that include a
multitude of information that serve as testament to this.
These facts reveal the Economic history of Sri Lanka. Upon
close inspection of the great irrigation projects of those times, it becomes
clear that the disciplines of engineering and agriculture were highly developed
in Sri Lanka. The island also had an efficient trading system in place.
Information detailing these endeavors can be found in
epigraphs, ‘Vansha Katha’ (Chronicles of Dynasties), ancient texts and letters
as well as in archeological evidence. Coins and epigraphs have a special place
among this evidence. Being primary pieces of evidence regarding the economic
history of Sri Lanka, these coins and epigraphs can be found in large numbers
scattered across the island. Aside from local sources, afore mentioned records
by international traders and foreigners also provide information about the
trade mechanisms of Sri Lanka’s past. This information is extremely
advantageous in the attempt to construct a timeline for the history of Sri
Lanka’s economy.
Sri Lanka’s currency-use can be divided into following
periods.
- Anuradhapura Era
- Polonnaruwa to Kotte Era
- Kandy Era
- Colonial Era
- Post-Independence Period since Establishment of the Central Bank of Ceylon
Coins used in
Anuradhapura Era
- Kahapana
- Swastika coins
- Maneless Lion coins
- Lakshmi Plaques
- Kahavanu or Lankeshvara coin
- Foreign Coins
- Kahapana
Kahapana
The earliest unit of currency known in the island is
referred to as a Kahapana. They are called puranas in Sanskrit and eldings in
English. They are commonly known as punch marked coins, due to the marks or
symbols that had been struck either on one side or both sides of the coin.
Kahapanas are reckoned to have been produced by cutting strips of metal from
hammered sheets. The known coins have been of many shapes, such as round,
square, rectangular or oblong. Their weight had been adjusted by clipping the
corners. The metal of the Kahapana has been found mostly to be silver.
Swasthika Coins
Apart from the ‘Kahapana’ coin with its many markings, other
types of coins were also used during the Anuradhapura era. The tusker and
swastika coin is one such type. It is a small Copper coin. A chosen few
markings that occasionally appeared on the ‘Kahapana’ were added in the making
of this particular coin.
On one side of the coin, there is an image of a walking
tusker, a stupa drawn using three half moons, a swastika and a Bo tree with
three branches inscribed in a square. On the flipside, there is a swastika, a
trident and a stupa. However, when considering the coin as a unit of currency,
it is probable that it was in the same category as a ‘Kahapana’.
Foreign Coins to
Anuradhapura
Clear proof that Sri Lanka was a functioning naval base in
the past comes from the foreign coins used during the Anuradhapura era. A great
number of Greek, Roman, Chinese, Arabic and Indian coins used in international
trade were found in Anuradhapura, Mihintale, Sigiriya, Kurunegala, Matara,
Akurugoda and Badulla.
Chinese Coins
These coins are made of Copper or Copper-rich alloys. Coins
minted in different eras are different in size as well. The coins are circular
with a squareshaped hole in the center. The Chinese Emperor’s name is engraved
in Chinese calligraphy along the four sides of the square. There are no
markings or images on the flipside of the coin.
Arabic Coins
These coins are minted using metals such as copper and
silver. On the face, there are devotional phrases in Arabic. The year of issue
is inscribed on the flipside.
Polonnaruwa to Kotte
Era
Coins used in Polonnaruwa to Kotte Era
1.
Massa Coins
2.
Dambadeni Coins / Coins of the Middle Ages
3.
Lion Coins
4.
Cetu Coins
Massa
Coins
King Vijayabahu I who was responsible for
toppling of the Chola dynasty, uniting the country and the inception of the
Polonnaruwa Kingdom; also produced ‘Kahawanu’. He added his name to the face of
the coin. Thus he is the first Sinhalese King to have had his name engraved on
coins that were issued during his reign. This coin was known as ‘Massa’.
The practice of engraving the name of the
King on coins continued from the beginning of the Polonnaruwa era until the end
of the Dambadeni era. The coins that belonged to the period of the Polonnaruwa
Kingdom bore the name of the King responsible for their production in ’Naagari
Akshara’ or ‘Naagari characters’. Thus the name of King Vijayabahu appeared on
the coin as Sri Vijayabahu, King Parakramabahu as Sri Parakramabahu, Chodaganga
as Sri Chodagangadeva, Queen Leelawathi as Sri Raja Leelawathi, King
Sahassamalla as Sri Sahasamalla, Dharmashoka as Sri Dharmashokadeva, and
Bhuwanekabahu as Sri Bhuwanekabahu. But King Nishankamalla’s name appeared as
Sri Kaligalakeja.
When names of kings Vijayabahu and
Parakramabahu appear on coins, there is no specification as to which Vijayabahu
or Parakramabahu it was. Only the name appears in same way in Naagari letters.
In particular, Queen Leelawathi was in power in three different periods but
there is no way of knowing which coins bearing her name came from which of the
three periods.
Coins produced under Chola kings such as
Rajaraja I (985-1016 A.D), Rajendra I (1012-1044 A.D) and Rajadhiraja I
(1018-1054) as well as under Pandya Kings were used during the Polonnaruwa Era.
In addition, the use of coins minted under the kings of the Chinese Sun dynasty
as well as the use of Arabic coins during this era indicates that Sri Lanka
engaged in international trade in the Polonnaruwa era just as it did in the
Anuradhapura era.
Kandy Era
- Angutu Massa/Koku Coins/ Laarin
- Dambadeni kasi
- Salli
- Indian ‘Waragama’
- Tuttu
- Panama
- Tangama
In the 10th century, a gold coin known as
‘Masuran’ was used in transactions. Because gold is a rare and precious metal,
the ‘Masuran’ gradually went out of use.
Therefore by the 13th century, the term
‘Masuran’ referred instead to a type of copper coin.
By the end of the 16th century, two types
of Silver coins ‘Ridi (Massa)’ and ‘Panama’ came into use. But by this time,
the gold coins ‘Ran Panam’ and ‘Ran massa’ were somewhat already in use. Later
the ‘Thangam Massa’, ‘Podi (small) Thangama’, ‘Ridiya’ came in to use. In the
18th century, the Indian ‘Waragama’ was utilized in Sri Lanka.
Around the same time, the copper coin
‘Salli’ was also used for transactions. One ‘Ridiya’ was worth 64 ‘Salli’
coins. Another contemporary coin was the Dutch ‘Stuiver’ which was used in the
Hill Country Kingdom. The people of Sinhale called these coins ‘Thuttu’.
Source: “Udarata Maha Keralla” – Professor Tennakon Wimalananda.
In addition, a large variety of coins such
as Larin, Dambadeni coins and Thangama were in use during the Kandy era.
Angutu Massa coin was in use during the Kandy
and Kotte periods and had a silver finish. It is believed that these
hook-shaped coins were brought to Sri Lanka by vendors from Persia. These
Persian coins were also known as “Laarin”. Records of Robert Knox’s experiences
in Sri Lanka mention that these coins were minted and circulated by Kings of
the Kandy era.
Colonial Era
Even though we divided Sri Lanka’s past
into eras such as Anuradhapura, Polonnaruwa and Kandy; in all those eras, the
entirety of Sri Lanka was never governed by one King. In different instances,
the island was invaded by foreign powers. However, until the Kotte Era, the
only invaders were the Chola. Despite such instabilities, we were able to make
profits through international trade (via the Silk Road), win praise and
maintain our splendid international reputation. But in 1453 A.D, the situation
changed as a consequence of the fall of Constantinople (Capital of the
Byzantine Empire). Europeans began to seek a route to the East over the great
ocean. Eventually, the Europeans were victorious in the East and the West. As a
result, Sri Lanka was colonized by the Portuguese, the Dutch and the English
respectively.
Malacca
The Portugal Coat of Arms appears on one
side of the Malacca coin. On either side of the seal the letters AM, MA or DM
can be seen. AM is the abbreviation for Asian Malacca. Similarly, MA and DM are
abbreviations for Malacca and De Malacca respectively. To indicate that it is
Thangam;, the letters A and T appear superimposed on the flipside of the coin.
On the same side, the year of production is also stated.
The Portuguese minted some of these coins
in Goa specifically to be used in Sri Lanka. These particular coins have the
Portuguese Coat of Arms flanked by the letters GA on one side and the letters
DS (superimposed) on the opposite side. DS is an abbreviation for ‘De Seylao’
which was the term used for Sri Lanka.
Gini Massa
The coin ‘Gini Maessa’ is commonly known as
‘Gini Massa’. There is an inscription of a gridiron on its flipside. Therefore
this coin should be known as “Gini Maessa” which means gridiron in Sinhala. The
Portuguese landed on this island in 1505 A.D. Before their immediate departure,
they had a small fortress
constructed in Colombo in the name of Saint
Lawrence. He had departed this life while burning on a gridiron. Therefore Gini
Maessa coins were minted and issued in memory of his final moments. It is possible
that this was the first commemorative coin issued by people of the West in Sri
Lanka. Gini Maessa coins were issued as Thangama coins in 1640 and Dvi Thangama
coins in 1645.
The First Bank Note
Up until the last half of Dutch Sri Lanka,
only coins were used in transactions. But in the final years of the 1700s,
Dutch security expenditure increased exponentially. The expenditure vastly
surpassed income and almost emptied the treasury. The birth of the banknote
took place against this backdrop.
So on March 19, 1785 banknotes equivalent to
25,000 Pathaga were authorized for printing. Accordingly, Sri Lanka’s first
series of banknotes was issued on the 10th of May, 1785. The first notes had
values equivalent to 50, 100, 500 and 1000 Pathaga. Afterwards, notes of
1,2,3,4,5,10 Pathaga were also printed. These notes contained the signatures of
three government officials.
During the British period, notes were issued
by three authorities
1.
Notes Issued by the General Treasury (1827 – 1855) - Pound Notes
One pound
Two pounds
Five pounds
2.
Notes issued by the Private Banks, namely, (1844 – 1884)
The Oriental Bank Corporation
The Chartered Mercantile Bank of India, London and China.
Hong Kong and Shanghai Banking Corporation
Asiatic Banking Corporation
(i)
Pound notes
(ii)
Rupee notes
3.
Notes issued by the Board of Commissioners of Currency (Under Government
of Ceylon) (1884 – 1950)
The Board of Commissioners consisted of
The Treasurer
Colonial Secretary
Auditor General
Post Independence Period Since Establishment
of the Central Bank of Ceylon
The Central Bank of Ceylon was established
on 28th August 1950 in terms of the Monetary Law Act No. 58 of 1949. The
Monetary Law Act provided for establishment of a Monetary Board to administer,
among other things, the issue of currency, which included both notes and coins.
Coins issued by the Central Bank of Ceylon
The notes issued by the British were used
in Ceylon up to 1951 and the coins were used up to 1963. The first Sri Lankan
coin series was introduced in 1963. The Emblem of Ceylon was introduced in the
obverse of this coin series. This series consisted of coins in the
denominations of:
- One cent (aluminium)
- Two cents (aluminium)
- Five cents (brass)
- Ten cents (brass)
- Twenty-five cents (copper / nickel)
- Fifty cents (copper / nickel)
- One rupee (copper / nickel)
- Rupees 5 (nickel / brass) and Rupees 2 (copper / nickel) circulation coins were introduced in 1984 instead of the five rupee and two rupee notes.
In 2005, the Central Bank issued a new series
of circulation coins of Rs.5 and Rs.2 by changing their weight and alloy, while
Re. 1, Cts 50 and Cts.25 coins were issued by changing the size, alloy, weight
and colour. These new coins are
circulating along with the previous issued coins.
