We also conducted an array of awareness programmes for the general public on our clean note policy. Going forward, to improve currency operations and processes, the construction of a new secure storage facility has been initiated at the Centre for Banking Studies premises in Rajagiriya. The facility is expected to be operational from 2019. As a medium-term solution to improve operational efficiency and increase processing capacity of currency notes, we are planning 33  to redesign the current operational flow with the introduction of new machinery and equipment. We plan to issue a new note series, in 2021, with a view to enhancing the quality of currency notes. We are also planning to establish a proper mechanism to distribute coins and to introduce coin vending machines. Further, we intend to enhance contingency storage capacity for currency with selected Regional Offices, while introducing a stronger monitoring system for Cash in Transit (CIT) companies. Public Debt Management As the fiscal agent of the government, we continued to issue, service and manage public debt during 2018 with transparency and prudence and initiated several policies to ensure that the government’s financing requirements are met at the lowest possible cost with a prudent degree of risk, while ensuring debt sustainability. During 2018, we encountered several challenges in government debt management due to interest rate normalisation in the US, the skewed government financing requirement as well as uncertainties in the political sphere.

With the view of enhancing the transparency and tradability in the secondary market, measures are being taken to introduce a new primary issuance system for Treasury bills. A distinct electronic trading platform, with a central counter party (CCP) arrangement for government securities, along with required legal 35  reforms to deepen and broaden the secondary market for Treasury bills and Treasury bonds, as well as a mechanism to disseminate secondary market information on debt instruments through the proposed e-trading platform and a clearing house are to be established. In addition, the Medium Term Debt Strategy (MTDS) is to be further streamlined with the assistance of multilateral agencies. Further, we will introduce amendments to the Local Treasury Bills Ordinance (LTBO) and Registered Stock and Securities Ordinance (RSSO) to ensure smooth and efficient functioning of the debt management system. In view of the increased volatility in global financial markets, we also intend to reduce the threshold for foreign investment in rupee denominated Government securities from 10 per cent of the outstanding Government securities stock at present to 5 per cent. Management of the Employees’ Provident Fund In discharging powers and duties vested with the Monetary Board in relation to the largest superannuation fund in Sri Lanka, Employees’ Provident Fund (EPF), the Central Bank has strived to improve the services provided to its stakeholders, while ensuring the enhancement of the return to members and the safety of the Fund. During 2018, the EPF continued its fund management activities to enhance returns by aligning the investment strategy with market conditions.