BANKING JOURNAL: History of the Currency of Sri Lanka

History of the Currency of Sri Lanka

Sri Lanka’s currency-use can be divided into following periods.

1. Anuradhapura Era

2. Polonnaruwa to Kotte Era

3. Kandy Era

4. Colonial Era

1. Coins used in Anuradhapura Era

· 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.

· Swastika 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.

· Maneless Lion coins

This is a Copper coin. On one side, there is an image of a lion. On the other side, there are three or sometimes four dots. It is likely that these dots indicate the value of the coin. The diameter of this coin is between ½ - ¾ inches and it weighs between 15-40 grains.

· Lakshmi Plaques

Coins with a female figure carved into the face were first circulated in Sri Lanka as early as 3 B.C - 8 A.D. It is believed that the woman on the coin is the goddess Lakshmi. Because of this, the coin is known as the ‘Lakshmi Thahadu (metal sheet)’. These coins were produced in two ways: the coins were either plated or engraved pieces of Copper. They also came in different sizes. The plated kind were 1 ¼ inches in length and ½ inch in width. The coins are a mixture of approximately 60 percent Lead and 15 percent Copper.

· Kahavanu or Lankeshvara coin

A Sinhalese gold coinage known as the 'Kahavanu" had been in circulation in the island from about the 7th to 8th centuries AD. These coins were either gold or gold-plated. They were distinguishable in terms of value as ‘Kahawanu’, ‘Ada Kahawanu’, ‘De Aka’ and ‘Aka’. On the face of the coin there is a human figure standing on a lotus stem. The figure appears to be clad in something similar to a ‘Dhothi’. The figure’s upturned left hand is holding an object against his tilted face. Some believe that the figure is ‘Kuwera’ the God of Wealth. There is a conch and Lotus flower on the flipside of the coin.

· Foreign Coins

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.

2. Coins used in Polonnaruwa to Kotte Era

· 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’.

· Dambadeni Coins / Coins of the Middle Ages

The golden ‘Kahawanu’ was a product of the last stages of the Anuradhapura era. The ‘Kahawanu’ entered the Polonnaruwa era in the form of a Copper coin. Nonetheless, coins that were used from the beginning of the Polonnaruwa era to the Dambadeni era are identified as the ‘coins of middle ages’ or Dambadeni. The ‘Dambadeni Massa’ coin is in fact the same as the Massa minted in the Polonnaruwa era. It is also known as the ‘Sinhala Massa’.

· Lion Coins

A special feature can be observed on coins bearing the name of King Parakramabahu VI (1412 – 1467 AD). To specify, there is an image of a lion to the right of the human figure that appears on the face of the coin. These coins are known as ‘Lion coins’. This particular type of coin is the last of the ones bearing the names of the rulers.

· Cetu Coins

The Cetu was issued in the 13th century under the rule of king Aryachakravarthi who ruled in Jaffna. This coin is a close imitation of the Dambadeni Massa. There is an image of a cow on one side and a standing figure (similar to that on the Dambadeni Massa) on the other. This coin is made of Copper. Majority of these coins were discovered in areas such as Nalloor, Thinnaveli, Kopai, Sandilippai, Sunthoor, Nagarkovil and Maamkulam.

3. Coins used in 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.

4. 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.

Coins used in Portuguese Period

· Saint type coins (St. Thome) - Gold	Tanga
· Malakka - Silver	Cruzado
· Ginimassa - Silver	Cakram
· Panam (Gold/Silver)	Laarins
· Gold Pagodi

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.

Coins of Saints

This series of coins bear the Portuguese Coat of Arms on one side (with GA imprinted on either side) and an image of a Saint on the flipside. Letters such as ST or SF are printed on either side of the image in order to indicate which Saint was being portrayed on the coin. These letterings represent Saint Thomas and Saint Filipe respectively.

Dutch Period (1658–1796)

Coins used in Dutch Period

· Rix Dollar

Duits

· Coins from Zeeland

Hollandaise coins

· Coins from Utrecht

Coins from West freaseland

· Coins from Guilderland

Stuivers

Duits

The coin that was most commonly used in transactions of this period is the Duit. This is a type of very small Copper coin. Due to its size, it was very inconvenient to count large numbers of Duits during transactions. To lessen the inconvenience, in 1737, numbers of Duits were joined together to form strings or chains of Duits.For instance, when 8, 16 or 24 Duits were strung together they represented the values of 2,4, and 6 Thuttu respectively.

However, this measure did not prove to be as successful as anticipated. In the 18th century, the Dutch began to mint their Thuttu coins in Sri Lanka. In 1781, the Ductch established the first coin minting factory and it was located near Kayman’s Gate in Colombo.

Another Dutch coin that was being used in Sri Lanka is the Rix - Dollar. In Sinhalese, these were called Pathaga. The Rix – Dollar was a type of Silver coin.

The Dutch also introduced the Silver one Rupee coin to Sri Lanka. They were minted in 1781 and 1786. On the face of the coin it said: The Colombo Dutch Company’s coin. On the Back of the coin “Lanka Island Currency” is stated in Arabic. The year of release also appears on the back.

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.

British Period (1796–1948)

Coins used in British Period

· Tharaka Pagodi	Farthing
· British Stuiver	Fanams
· Rix Dollar (Silver coin - 1825)	Half Rupee
· Rupee (Indian Rupee)	Quarter Rupee

There are two types of coins the English used for transactions in Sri Lanka. The first was a gold coin minted in Madras known as ‘Tharaka Pagodi’ or the Star Pagodi. One Star Pagodi was the equivalent of 45 Panam or 180 Thuttu. The second type of coin was a Copper one. They were minted in England in 1794 and 1797. It was equivalent to 1/96 (gold coin) and 1/48 (copper coin) of a Rupee. ‘United East India Company’ was printed on one side with the year it was issued. The Royal Coat of Arms and the value of the coin could be seen on the other side of the coin.

They also issued ½ Thuttu and ¼ Thuttu coins in 1801. On one side of these coins there was an image of a tusker and the year it was issued. On the flipside, Ceylon Government is engraved along the edge while the value of the coin can be seen at the center. The value on the Thuttu is 48 and the value on the ½ Thuttu is 96. The value on the ¼ Thuttu is 192. These values illustrate the number of each coin needed to match a Pathaga. Multiple batches of these coins were minted between 1801 and 1804.

Like the Dutch, the English also issued banknotes in addition to coins. The first series was issued in 1800. Up until 1801, monetary quantities were recorded in English publications using the Star Pagodhi system. But this method changed after the areas under British control came under the Chief Secretary in charge of Colonial Regions. From then on, Pathaga, Panam and Thuttu were used in recording monetary quantities. Thus the ¼ Pagodhi became equivalent to 1 Pathaga. (1/4 Pagodhi=1 Pathaga)

From 1808 to 1818, ½, 1 and 2 Pathaga (silver) were minted occasionally and their values appeared on the coins as 24, 48 and 96 respectively. In 1803-1817, the copper coins Panam, Thuttu and Thuttu Deka (two Thuttu) were issued as well.

In the time of British – Sri Lanka, currencies such as Farthing, British Thuttu, Pathaga (Silver Coin), Panam, Indian Rupee, ½ Rupee and ¼ Rupee were in use. The cent, two -cent, five-cent, ten cent, twenty-five –cent and fifty –cent coins were also used as units that had values less than the Rupee.

As a solution for colossal shortage faced in 1815, British took a large number of Duits (worth 37,339 Pathaga) confiscated from the Dutch and re-circulated them as their own currency.