The History of Gold as a Form of Security in Sri Lanka.
Gold, a symbol of wealth and security, has been deeply intertwined with the cultural and economic fabric of Sri Lanka for centuries. This blog post explores the rich history of gold in Sri Lanka, highlighting its enduring role as a form of security for loans and financial transactions.
Sri Lanka's relationship with gold dates back to ancient times. Known historically as the 'Island of Gems', Sri Lanka was famous for its precious stones and metals. Ancient Sri Lankan kingdoms, such as Anuradhapura and Polonnaruwa, were known for their wealth in gold. Gold coins from these eras, found in archaeological excavations, testify to the metal's use as a currency and a symbol of prosperity.
In the heart of Sri Lanka's history, gold has not just been a treasure but a trusted guardian of wealth and security.
Gold was not only a medium of exchange but also held significant cultural and religious value. It was used in religious ceremonies, crafted into exquisite jewelry for the nobility, and played a central role in traditional Sri Lankan weddings, symbolizing wealth and social status.
Colonial Era and Gold
The colonial period saw a shift in the use of gold. The Portuguese, Dutch, and British colonizers recognized the value of Sri Lanka’s gold reserves, which led to increased mining and exportation. However, during this time, gold also began to be used as a form of security. People started pawning their gold in exchange for loans, a practice that was particularly useful for farmers who needed capital to invest in their crops.
- After gaining independence in 1948, Sri Lanka underwent significant economic transformations. However, the use of gold as security remained prevalent. With the establishment of formal banking systems, gold mortgages became a common practice. This system allowed individuals to obtain loans by mortgaging their gold assets, thereby providing financial security and flexibility.
- Today, gold continues to be a vital form of security for loans in Sri Lanka. This practice is deeply rooted in the country's culture and economy. It offers a quick and reliable way for individuals to access funds, often with more favorable terms than traditional bank loans.
Conclusion of This Blog
The history of gold in Sri Lanka is a testament to the metal's enduring value and versatility. From ancient times to the present day, gold has served as a symbol of wealth, a medium of exchange, and a reliable form of security for loans. Its role in the cultural and economic landscape of Sri Lanka is not just a relic of the past but a continuing legacy.
Comments
Jayalath Suraweera
29 Oct 2024Your exploration of its journey from ancient times to its current use in gold mortgages is very informative. Keep up the great work with these types of blogs!