Police say there has been an increase in counterfeit currency notes of especially Rs.500, Rs.1000 and Rs.5000.
Police warned the public to be vigilant of the watermark on banknotes during transactions.
Meanwhile, a suspect in possession of 17 counterfeit Rs.500 notes was arrested in Pudukuduirippu, Mullaitivu.
Police said the 41-year-old woman was arrested by Police Special Task Force officers attached to the Mullaitivu base.
Police requested the public to promptly hand over any counterfeit notes they receive to the nearest Police Station.