A high-value Central Bank procurement has triggered serious scrutiny, with experts questioning transparency, approval procedures, and the necessity of a costly currency detection system in Sri Lanka’s evolving digital financial landscape.
The Central Bank of Sri Lanka has reportedly placed an order to purchase a specialised currency verification machine valued at Rs. 700 crore, approximately seven billion rupees, from German firm Giesecke+Devrient. The system is designed to detect counterfeit and soiled currency notes within financial transactions, but the scale and timing of the deal have sparked a wave of concern across financial and policy circles.
Attention has intensified due to the unusually high cost of the procurement, alongside the lack of clarity surrounding the identity of the local representative involved in facilitating the transaction. While official disclosures remain limited, sources indicate that a prominent businessman may be acting as the intermediary, raising questions about procurement transparency and governance standards.
At present, the Central Bank already operates a similar machine for currency verification purposes. This has led to internal debate among economic experts, some of whom are questioning the need for an additional system at such a significant cost. The concerns are particularly relevant at a time when financial transactions are increasingly shifting toward low cost digital platforms and code based payment systems, reducing dependence on physical currency handling.
Further scrutiny has emerged over the approval process linked to the purchase. Although the Central Bank maintains its position as an independent institution, existing procurement regulations reportedly require any transaction exceeding Rs. 100 million to receive Cabinet level approval through a formal tender committee process. However, it remains unclear whether such approvals were obtained in this case, according to internal sources.
These uncertainties have amplified concerns regarding procedural compliance and decision making transparency within one of Sri Lanka’s most critical financial institutions. As discussions continue, the deal is now seen as a test case for accountability, regulatory adherence, and the broader direction of financial modernization in Sri Lanka.
