Currency and Nature of Trade in ancient Ceylon before Vijaya's Conquest of Serendip(Serendhepa)

Although historical records are limited about the economic system of Sri Lanka before Vijaya's conquest of Lanka (before the 6th century BC), a general picture can be drawn from archaeological evidence and the study of cultures in surrounding areas.

Currency

Barter System

• Early communities mainly used the barter system.

• Natural products such as grains, fish, pearls, and gems were used as mediums of exchange.

• Small pieces of metal, bones, shells, special stone pieces, clay balls, and pellets ( laṁjā pōdhiti ) may have been used as mediums of exchange.

Early Forms of Money

• Seashells may have been a major medium of exchange.

• Essential goods such as salt, pearls

• Small pieces of gold and silver

Nature of Trade

Internal Trade

• Exchange of grain between agricultural communities.

• Trade between fishing communities and agriculturalists.

• Exchange of paddy products between the Clove communities

• Exchange of handicrafts

External Trade

• Trade relations with South India

• Ceylon as a hub of the Indian Ocean trade routes

• Export of local products such as pearls, jewellery, coal, sandalwood

• Import of metal materials, textiles, vessels

Market Places

• Port cities (on the south and west coasts)

• Trading centres between villages

• Trading centres at the mouths of major rivers

The economy of Sri Lanka during this period was mainly based on self-sufficient agricultural communities, and it appears that there was a mixed economy with limited trading activities.

Vijaya's Conquest of Various Native Peoples

Vijay - Yakshas - Naga nation - Kuveni (Kuvanna)

According to the traditional story mentioned in the Mahavamsa, after King Vijaya defeated the Yakshas and expelled them from the island, the following happened to the other indigenous groups:

Naga Nation

As mentioned in the Mahavamsa, when Vijaya and his party landed in this country, the Yaksha nation was mainly living in this country. Regarding the Naga nation, the Sattva chapter of the Mahavamsa states that they gradually merged with the Sinhalese people of the Arya nation. It is said that the Naga nation completely mixed with the Sinhalese people and merged.

Raksha Nation

Although specific details about the Raksha nation are limited, it is stated that they also previously lived in this country along with the Yakshas, and after Vijaya's arrival, they also mixed with the Sinhalese Arya people.

Fate of Nation

Queen Kuveni bore King Vijaya two children. When King Vijaya asked Kuveniya to leave the palace with her two children, she fled with her children and was killed by her Yakka relatives for betraying her.

King Vijaya – Pandukabhaya – Mutasiva: Money and Trade in Sri Lanka

The Monetary System of Ancient Sri Lanka

(Kahapana, Padamasagara, Veleda)

A description of the monetary and trade systems used in Sri Lanka from the time of King Vijaya to King Pandukabhaya and Mutasiva is as follows:

Monetary System

Primitive Period (Vijaya – Pandukabhaya)

Information regarding the use of money in ancient Sri Lanka can be found in various historical, religious, cultural and archaeological sources, but it is uncertain when and where its exact origin occurred.

Main Methods Used

• Barter System: Humans were the first to start the Barter System

• Commodity Currency: Rice, other grains, micro-organisms, gold, silver, copper were used as currency

• Indian Influence: It is believed that the influence of Indian traders was widely used in the trade activities related to ancient money in this country.

Trade

Domestic Trade

• Trade based on agricultural products

• Exchange of grains, rice, and jewelry

• Trade in handicrafts

International Trade

• Main trade relations with India

• Export of gems, pearls, jewelry

• Import of textiles, metal products

Economic Changes During the Pandukabhaya Era

King Pandukabhaya was the first king to unite Sri Lanka. During his time:

• Creation of the kingdom of Anuradhapura

• Ruled the kingdom for seventy years in the beautiful Anuradhapura, flourishing with all the comforts

• Organization of trade routes

• Establishment of the judicial system

Time of King Mutasiva

A prince named Mutasiva, born to King Pandukabhaya from the womb of Swarnapali, became king after the death of King Pandukabhaya.

During his time:

• Mahamevna Garden in Anuradhapura

• Promotion of trade due to urban development

• More formalization of established monetary systems

General Characteristics

• Monetary units: Use of units such as kahapana, masaka, krama

• Trade centers: Major trading cities such as Anuradhapura, Thambapanni

• International relations: Trade relations with South India, Bengal

• Caste system: 4 types of castes are described. King, Brahmin, merchant and farmer

• The merchant caste played an important role in the monetary system.

Money and trade systems during this time were the foundation of the economic base of modern Sri Lanka, and were also a means of building relations with other parts of the Indian subcontinent.