Mar 12, 2013 (LBO) – Sri Lanka has cut coin issue costs from 2013 by allowing more international coin producers to bid for minting contracts, Central Bank Governor Nivard Cabraal said. “We widened the criteria for bidding, and we have made substantial savings,” Governor Cabraal said.
“We got very good prices.”
From 2013 to 2015, Mint of Finland Ltd, the Royal Dutch Mint of the Nederlands and Mincovna Kreminica of the Slovak Republic will produce 1,2,5 and 10 rupee coins.
Sri Lanka has traditionally minted coins at the Royal Mint in Britain.
The Central Bank said it will also carry out campaigns to put idle coins back into circulation.
Dollar inflation and currency depreciation tends to push up the cost of coin production above the metal value of coins, making coin issue a loss to a central bank.
When the metal value increases substantially people may also melt them and produce goods and take them out of circulation.
Sri Lanka’s 10 and 5 cent brass coins that circulated from the time of independence from British rule were melted during the high inflation of the early 1980s to make screws and were replaced with cheaper aluminum coins.