Ceylon Banknotes : King George VI 1951 Issue

The 1951 issue of Ceylon banknotes represents a significant milestone in the monetary history of the island nation, now known as Sri Lanka. Following the establishment of the Central Bank of Ceylon, these banknotes were among the first to be issued under the new monetary authority, reflecting both the colonial heritage and the country's nascent journey towards financial independence. This article delves into the background, design, and historical significance of these banknotes, providing a comprehensive overview for collectors and enthusiasts.

Dominion of Ceylon

The Dominion of Ceylon was officially established on 4 February 1948, after the British Parliament passed the Ceylon Independence Act on 10 December 1947. This act led to the creation of the 1947 Constitution, which allowed Ceylon to become a self-governing country, while still recognizing the British monarch as the head of state, represented by a Governor-General in Ceylon.

During the dominion period, which lasted until Ceylon became a republic in 1972, many important political and economic changes took place. One key development was the establishment of the Central Bank of Ceylon.

Central Bank of Ceylon

Formation and Objectives

The Central Bank of Ceylon was established by the Monetary Law Act No. 58, enacted on 16 December 1949. The name of the bank in Sinhalese is Lanka Pradana Bankuwa.

Based on known banknotes essay from 1 Rupee to 1000 Rupee dated 1 January 1950 but made in February 1949, which had the issuer name of Reserve Bank of Ceylon, it is likely that the same name was initially planned but according to the Monetary Law Act No. 58, the Central Bank was adopted instead.

The objectives of the Central Bank included maintaining monetary stability, managing foreign reserves, issuing currency, and acting as the banker to the government. These roles were essential in creating a stable economic environment conducive to development and growth.

Commencement of Operations

The Central Bank of Ceylon commenced operations on 28 August 1950. This date marks a pivotal moment in Ceylon’s financial history, as it signaled the beginning of a new era of monetary policy and economic management. The Central Bank’s responsibilities encompassed a wide range of functions critical to the country's financial stability, including the issuance of banknotes, which would soon become a tangible symbol of the new authority.

1951 Ceylon Banknotes Series

Intended Full Series of Banknotes

The full series of banknotes intended for the 1951 issue included denominations of 1, 2, 5, 10, 50, and 100 Rupees. This comprehensive range of currency notes was designed to cover all levels of transactions, from everyday purchases to larger commercial dealings. The planning for these denominations is evidenced by the watermarked papers of this series of the Portals archive.

Issued Denominations

Despite the initial plans for a comprehensive series, only the 1 Rupee and 10 Rupees notes were ultimately issued for circulation.

Unissued Denominations

The other denominations, although prepared, were not released. Specimens of the unissued 5 Rupees and 100 Rupees notes do exist, as well as, archival photographs of the 1, 2, 5, 10, 50, and 100 Rupees are also known. The specimens and archival photographs provide a glimpse into what the complete series would have looked like.

Printer, Signature, and Other Designs

Printing by Bradbury, Wilkinson & Co.

The earlier issue of George VI paper money of Ceylon was printed by India Security Press Nasik, but the 1951 issue was printed after India obtained independence so a new printer was to be chosen. The task of printing the 1951 Ceylon banknotes was entrusted to Bradbury, Wilkinson & Co., a renowned British security printing company.

Watermark Design of Banknotes

The watermark used for the 1951 features a Ratanapura lion facing left on its hind legs holding a bent whip using its right paw. The watermark is similar to the one used in the previous George VI series issued from 1941 onwards. The watermark design is different from the lion shown on Sri Lanka's flag which has a sword instead. It is believed that the Ratanapura lion watermark design is from the 18th-century Royal Kandy period flag. Even though only the 1 Rupee and 10 Rupee notes were issued for circulation, watermarked papers for 1, 2, 5, 10, 50, and 100 Rupees, intended for a complete issue in 1951, are known. The known set from the Portals archive is probably unique.

Signatures of the Minister of Finance and Governor

The signature on the left side of the banknotes is that of Junius Richard Jayewardene, who served as the Minister of Finance. Jayewardene was a prominent political figure in Ceylon and served in various posts, including, the Prime Minister of Sri Lanka from 1977 to 1978 and the second President of Sri Lanka from 1978 to 1979.

The signature on the right side of the banknotes belongs to John Exter, the first Governor of the Central Bank of Ceylon. Exter, an American citizen, brought a wealth of experience and expertise to the position. His leadership during the formative years of the Central Bank was crucial in establishing a stable and effective monetary system. The presence of his signature on the banknotes underscores the international influence and collaboration in Ceylon's early financial administration.

Trilingual Text on Ceylon Banknotes

In 1951, the official language of the Dominion of Ceylon was English, so most of the text used on the notes was in English. However, to cater to the diverse population of Ceylon, the banknotes featured value text in three languages: English, Sinhala, and Tamil. This multilingual approach was essential in a country with a rich tapestry of linguistic and ethnic groups.

Legal Tender Text on Ceylon Banknotes

Before 1941, the banknotes of Ceylon had the "Promises to Pay the Bearer ..." text based on promissory notes. In 1941, the legal tender text was adopted. The Reserve Bank of Ceylon essay prepared in 1949 had the promissory note text but this was not adopted by the Central Bank of Ceylon issue.

The Ceylon Bank of Ceylon 1951 issue used the legal tender text as follows: "This note issued on behalf of the Government of Ceylon and is legal tender in Ceylon for the payment of any amount."

Features of the Issued Banknotes

The 1951 King George VI series featured two issued denominations, namely 1 and 10 Rupees, each with a single variety. Thus, the series comprised a total of two varieties for the issued banknotes.

Common Features

Issuer: Central Bank of Ceylon
Printer: Bradbury, Wilkinson & Co
Date: 20 January 1951
Obverse Design: Name of the issuer in English at the top and a portrait of King George VI facing front at the left
Material: Paper
Security Thread: None
Watermark: Lion on its hind legs holding a whip

1 Rupee Banknote

Denomination: 1 Rupee
Dimension: 110 x 60 mm
Color: Blue, orange, and green
Date: 20 January 1951
Reverse Design: Issuer's name in English at the top and an image of the moonstone steps flanked by guard stones in Polonnaruwa
Prefix: A/1 to A/30
Catalog Number: Banknote Book B301; Pick 47

10 Rupees Banknote

Denomination: 10 Rupees
Dimension: 147 x 79 mm
Color: Green and purple
Reverse Design: Guard stone of Naga-raja holding a sprouting branch and punkalasa beneath the hood of cobra heads, with Sankha and Padma at the feet and the issuer's name in English at the bottom
Prefix: L/1 to L/20
Catalog Number: Banknote Book B302; Pick 48

Other Denominations

The death of King George VI in February 1952 had a significant and immediate impact on the release of the 1951 Ceylon banknotes. Before his death, the production of the 1951 series was well underway, with several denominations already designed and ready to be issued. However, the sudden passing of the monarch brought about an abrupt halt to the process.

Known Specimens

Specimens of the unissued 2 Rupees, 5 Rupees, 50 Rupees, and 100 Rupees notes are known to exist and provide a fascinating insight into the design intentions for the full series. The common features are the same as mentioned above for issued notes. The remaining features that differ are as follows:

2 Rupees Banknote

Denomination: 2 Rupees
Dimension: 120 x 66 mm
Color: Brown, violet and green
Reverse Design: The reverse side showcases the lotus stem pillars of Medirigiriya Vatadage in Polonnaruwa and the issuer's name at the top.
Prefix: E/1
Catalog Number: Banknote Book unlisted; Pick unlisted

5 Rupees Banknote

Denomination: 5 Rupees
Dimension: 133 x 72 mm
Color: Purple, orange and green
Reverse Design: Statue of Parakramabahu I, located near the Pothgul Vehera in Polonnaruwa, and the issuer's name in English at the top
Prefix: G/1
Catalog Number: Banknote Book B301.5; Pick unlisted

50 Rupees Banknote

Denomination: 50 Rupees
Dimension: 157 x 88 mm
Color: Blue and red
Reverse Design: Semi-circular moonstone and steps in Anuradhapura and the issuer's name in English at the top
Prefix: R/1
Catalog Number: Banknote Book unlisted; Pick unlisted

100 Rupees Banknote

Denomination: 100 Rupees
Dimension: 170 x 98 mm
Color: Brown and violet
Reverse Design: Fresco of two women with lotus flowers at Sigiriya or Sinhagiri, an ancient rock fortress located in the northern Matale District, and the issuer's name at the top.
Prefix: V/1
Catalog Number: Banknote Book B302.5; Pick unlisted

Archival Photographs

In addition to the specimens, archival photographs of the 1, 2, 5, 10, 50, and 100 Rupee notes with different designs from the issued notes and specimens of unissued denominations exist. The archival photographs, even though they were likely to be prepared before the issued notes, were dated 1 March 1951 and 1 June 1951. On some denominations, King George VI is shown at the left, and on others, he is shown at the right.

The archival photographs provide valuable historical records of the design process and the various considerations that went into the creation of the 1951 series. They are an important resource for researchers and collectors, shedding light on the evolution of banknote design in Ceylon.

Historical Context and Transition

The 1951 banknote issue holds a unique place in Ceylon's monetary history, bridging the colonial era and the post-independence period. King George VI's portrait on these notes symbolizes the continuing influence of the British monarchy, even as the country was moving towards greater autonomy.

King George VI passed away on 6 February 1952, marking the end of an era. His death led to the ascension of Queen Elizabeth II, prompting a subsequent series of banknotes featuring her portrait. This transition underscores the historical significance of the 1951 issue as the last series to feature King George VI.

Subsequent Issues

Following the death of King George VI, the Central Bank of Ceylon issued a new series of banknotes featuring Queen Elizabeth II. This new series included the complete range of denominations that were initially intended for the 1951 issue. The next article will delve into the details of this subsequent series, highlighting the changes and continuities in Ceylon's banknote designs.

Conclusion

The 1951 issue of Ceylon banknotes is a fascinating chapter in the island’s monetary history. Despite the preparation of a complete series of 1, 2, 5, 10, 50, and 100 Rupees currency due to King George VI's death in February 1952, only the 1 Rupee and 10 Rupees notes were issued, this makes the study and collection of this series including the available specimens, archival photographs and watermarked papers even more interesting.

Following the death of King George VI, the Central Bank of Ceylon issued a new series of banknotes featuring Queen Elizabeth II. This new series included the complete range of denominations that were initially intended for the 1951 issue. The next article will delve into the details of this subsequent series, highlighting the changes and continuities in Ceylon's banknote designs.

Frequently Asked Questions (FAQs)

Q: Which institution was responsible for issuing the 1951 series of Ceylon banknotes?

A: The Central Bank of Ceylon, established by the Monetary Law Act No. 58, commenced operations on August 28, 1950, and became the issuing authority for the 1951 series of Ceylon banknotes.

Q: Which denominations of the 1951 Ceylon banknotes featuring King George VI were actually issued for circulation?

A: Despite initial plans for a comprehensive range, only the 1 Rupee and 10 Rupees notes from the 1951 King George VI series were ultimately issued for general circulation. Specimens and archival photographs exist for the unissued denominations.

Q: What kind of watermark was featured on the 1951 Ceylon banknotes?

A: The 1951 Ceylon banknotes featured a watermark of the Ratanapura lion. This lion was depicted facing left on its hind legs, holding a bent whip with its right paw, a design believed to be inspired by an 18th-century Royal Kandy period flag.

Q: Who were the key signatories on the 1951 Ceylon banknotes?

A: The 1951 Ceylon banknotes bore two signatures: Junius Richard Jayewardene as the Minister of Finance (on the left side) and John Exter as the first Governor of the Central Bank of Ceylon (on the right side).

Q: Why were some denominations of the 1951 King George VI banknote series never issued for circulation?

A: The production of the full 1951 series was abruptly halted due to the death of King George VI in February 1952. Although several denominations were already designed, his passing led to the decision to issue a new series featuring Queen Elizabeth II instead, making the remaining 1951 notes unissued.