Scarcity of coins hits businesses

By Lalin FERNANDOPULLE

The scarcity of coins is adversely affecting small scale businesses and monetory transactions among people. Many retail shop owners said that they are unable to carryout business due to the shortage of coins. Suraj Mendis, a retailer in Pettah said that he cannot pay the exact balance to customers due to the dearth of coins. “Often I have to give toffees or boxes of matches to return a balance below Rs. 10”, a retailer said.

Certain businessmen are making use of the scarcity of coins to sell their products on the pretext that they do not have change. Bus commuters complain that they are unable to pay the exact fare as a result conductors don't give the balance.

Thus commuters lose a considerable sum of money on public transportation. An official of the Central Bank said that there is no shortage of coins and added that adequate stocks are released to banks. “The Bank cannot give coins in bulk to customers. They could issue a certain amount of coins only on prior request” a Bank official said.“Merchants in Colombo request for a large stock of coins daily but we cannot give them as we need to pay other customers”, he said.

“A large sum of money is spent to mint coins of Rs. 10, Rs. 5, Rs. 2, and Rs. 1 denominations”, he said. Central Bank sources said that a large amount of coins are either melted , stored in homes in tills or deposited in temples and churches. Twenty five and 50 cent coins have no value. The value of the rupee has drastically eroded. “There is hardly anything we could buy with one rupee”, a customer said.People have been called upon to use coins in the market to ensure that it remains in circulation.