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Old Kuwaiti Dinars Still valid

The Central Bank of Sri Lanka (CBSL) introduced a scheme in October, 1990, with the assistance of local commercial banks, to provide immediate relief to those persons returning to Sri Lanka after the commencement of hostilities in Kuwait, by providing facilities for the partial encashment of Kuwaiti Dinar currency notes that were brought by such persons.

At the inception, commercial banks were requested to pay Rs. 26.25 per Kuwaiti Dinar, subject to a maximum of Kuwaiti Dinar currency notes equivalent of Rs. 10,000 per person. The CBSL also permitted commercial banks to encash at the Colombo International Airport counters Kuwaiti Dinar in the form of currency notes equivalent to Rs. 1000 tendered by passengers arriving from Kuwait to enable them to meet their immediate expenses.

Subsequently, the Central Bank of Kuwait announced the withdrawal of Kuwaiti Dinar currency notes issued and place in circulation up to August 1, 1990 and the issue of currency notes of the new design against those notes withdrawn. The Bank also announced that they will not accept certain series of old Kuwaiti Dinar currency notes in different denominations in exchange of new currency notes so issued. The final date of the conversion into new design notes of valid old Kuwaiti Dinar currency notes, held abroad by individuals and banks was 30.09.91.

The CBSL with the assistance of the Ministry of Foreign Affairs and commercial banks operating in Kuwait took steps to repatriate old Kuwaiti Dinar currency notes which had been deposited by commercial banks and held by the CBSL for conversion into new design Kuwaiti Diner currency notes in accordance with the guidelines given by the Central Bank of Kuwait.

The Central Bank of Kuwait, after verification of currency notes forwarded to them by the CBSL through its correspondents, informed that a ceratin portion of the currency notes forwarded to them were of the series invalidated by them and that the proceeds were remitted only against those Kuwaiti Dinar currency notes accepted by them for exchange for new design currency notes.

Accordingly, the CBSL issued necessary instructions to commercial banks to release the balance due to their customers (at Rs. 53/84 per Dinar) who deposited Kuwaiti Dinar currency notes with them on the basis of the total realized value received from the Central Bank of Kuwait.

Later on, the Central Bank of Sri Lanka submitted a claim to the United Nations Compensation Commission (UNCC) regarding the Kuwaiti Dinar currency notes not accepted by the Central Bank of Kuwait for conversion UNCC accepted portion of the claim and proceeds have now been remitted. Accordingly, the CBSL has issued necessary instructions to commercial banks to release the funds received, to their customers who deposited Kuwaiti Dinar currency notes with them, on the basis of the amount realized/received from the UNCC on a pro-rata basis. On the basis of the realized value for old Kuwaiti Dinar currency notes, the Rupee payment to be made would be Rs. 184.32 per Dinar.

Members of the public who have deposited their old Kuwaiti Dinar currency notes with commercial banks and received partial payment and those who have not received any payment against their Kuwaiti Dinar currency notes are hereby informed that they can obtain the entitled payments on a pro-rata basis from the respective commercial banks by producing the documents pertaining to their deposits.

Please note that the decision of the respective commercial bank with regard to the entitlement if any, of each claimant, is final.

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