Financial Times

Central Bank mulls demand to lift ban on colour photocopiers
By Duruthu Edirimuni
The Central Bank is considering a request from vendors to lift the embargo on the import of colour photocopiers which have been banned because they can be used to counterfeit currency notes.

Central Bank Deputy Governor W. A. Wijewardena said that till the 'colour copy line' feature on currency notes is introduced, the regulator will not be in a position to give the go ahead for the colour photocopiers.

"When a 'colour copy line' feature is incorporated into a note, the line will appear in a different colour from the original colour when photocopied and this is a part of the security feature incorporated into the colour photocopiers to discourage counterfeit frauds," he said. This is primarily deployed for brand protection to help combat counterfeit products and illegal trade by acting as a deterrent.

The Office Automation Vendor's Association argues that the colour photocopiers currently manufactured have in-built features to prevent counterfeiting.

It has lobbied the case through the Superintendent of Currencies and had made several representations to the Central Bank for years. They complain that the case gets thrown from pillar to post and the monetary authority is non-committal, whereas the Interior Ministry and the Crime Detection Bureau is not keen on the idea.

The Metropolitan Group of Companies is one company that has made representations to the Central Bank to lift the embargo. J. J. Ambani, Chairman Metropolitan Group of Companies, said that the colour photocopiers currently in the market posses in-built safety features against manufacturing fake notes adding that Sri Lanka is the only country that has banned the colour photocopiers.

"Nowadays there are many devices that can be used to print currency notes such as a simple computer and a colour printer and multi colour photocopiers will not make much difference," he said. He said that companies looking to carry out multi colour photocopier businesses could increase their revenue by 25 to 20 percent, if the colour photocopiers business line is opened up.

S. Wijesinghe, Superintendent of Currencies, said that the request to lift the restriction on colour photocopiers is under consideration. "We are making inquiries from the neighbouring nations to get an insight on their policies," he said. Wijesinghe said that India has incorporated the 'colour copy line' feature into their currency notes.

When asked about the issue of using a computer to counterfeit notes, he said that it is a longer process as one needs a computer, a scanner and a printer, and to print the notes via a colour photocopier is more straightforward than through a computer.

"With the colour photocopiers there is only one stage to print fake notes and it is much easier to use as there is a better alignment ," he said. Wijesinghe said that De La Rue, a British company, the world's largest commercial security printer and paper maker, has declared that the 'colour copy line' feature is not 100 percent foolproof. De La Rue is involved in the production of over 150 national currencies and a wide range of security documents such as travellers cheques and vouchers.

"It does not mean that all colour photocopiers that are imported will have this feature," Wijesinghe said. Importers of colour photocopiers can be genuine, but the purchasers may not be so. "It is a risk that we cannot take," he said. He added that Sri Lanka does not have the ability to ensure that every colour photocopier has this security feature.

Back to Business