DEFINITION of LKR (Sri Lankan Rupee)
LKR is the currency symbol for the Sri Lankan rupee, the currency for the Democratic Socialist Republic of Sri Lanka (Ceylon prior to 1972), an island nation off the southern coast of India. The Sri Lankan rupee is made up of 100 cents and is often presented with the symbol Rp. or Rs., in the form Rp. 50 for 50 rupees.
The rupee can also be presented with SLRp. or SLRs., rather than Rp. or Rs., to differentiate it from other currencies denominated in rupees.
BREAKING DOWN LKR (Sri Lankan Rupee)
The Sri Lankan rupee was first established in 1869, replacing the British pound at an amount equal to the Indian rupee (1 rupee to 2 shillings, 3 pence), and was a decimal currency from 1871. As inflation devalues the currency, new banknotes are released (for example, in 2006 a 2000 rupee note was issued), and although older Sri Lankan (and Ceylon) banknotes and coins remain legal tender, older and smaller notes and coins are rarely seen in circulation.
Notes and coins are distributed by the Central Bank of Sri Lanka, and in 2010, it celebrated the 60th anniversary of the central bank by issuing commemorative coins with a denomination of 5,000 rupees.
The value of the rupee is correlated with its trade balance.