CITI WINS MARQUEE SRI LANKA CASH MANAGEMENT MANDATE
Colombo - August 19, 2009 – Citi Treasury and Trade Solutions, a division of Global Transaction Services, has been appointed primary cash management bank by Mobitel (pvt) Ltd., the leading mobile telecommunications provider in Sri Lanka. By winning this landmark mandate, Citi will provide Mobitel with a customized solution to enhance visibility and control of payments and collections across Sri Lanka.
For Mobitel, Citi will provide a fully integrated accounts receivable and payables solution to enhance visibility of control funds, while also enhancing reconciliation. To achieve this goal, Citi created a customized and innovative solution comprising of numerous services including outsourcing of daily cash and check collection and pooling of collected funds into concentrated account structures.
Payments processing, which Mobitel had previously executed manually, will now be automated through CitiDirect® Online Banking, Citi’s web-based banking platform. Under the solution provided, Citi will also fully integrate both collections and payments into Mobitel’s ERP system for auto-reconciliation.
Additionally, to facilitate further efficiencies for its clients, Citi will deploy an Easy Pay Kiosk Machine at Mobitel’s flagship shop in Colombo to provide an alternative and convenient payment channel.
When tendering this mandate, Mobitel also required a solution to streamline the issuance of withholding tax (WHT) certificate solutions, which are required by Sri Lankan law to be returned to payers as proof of purchase. To maximize efficiencies for its withholding taxation requirements, Citi tailored an outsourcing solution for Mobitel that allows for streamlined issuance of withholding tax (WHT) certification issuance. Under this solution, Citi enabled Mobitel to obtain the WHT certificate at the time of payment issue, eradicating time-consuming and manual processes of offsetting tax bills.
The mandate announcement comes at an important period for Mobitel in Sri Lanka. The company is currently undergoing a rapid expansion in this market and required a single cash management bank to maximize its cash cycle, enhance working capital and improve visibility of funds to support its network and technological development in this market.
For Citi, the deal is significant in demonstrating its ability to innovate, customize and understand the needs of an evolving and rapidly expanding client. Additionally, by providing a customized solution, Citi has displayed its knowledge of local Sir Lankan regulations and requirements of clients in this market.
Nishantha Weerakoon, Senior General Manager, Finance and Procurement at Mobitel said: "Citi’s customized solution for Mobitel demonstrates a complete understanding of our requirements and goals. Through experience and innovation, the Citi team successfully structured a solution that truly enhances processes and provide value creation benefits to Mobitel."
Dilshan Seneviratne, Global Transaction Services Head for Sri Lanka said: "We are truly honored to partner with Mobitel in providing a customized value enhancing solution for its cash management needs. Citi's strategic partnership with Mobitel is an important cornerstone of the solutions we provide to the telecom Industry and we look forward to building on the relationship between our two world class organizations."
Sri Lanka Telecom Mobitel, the National Mobile Service Provider, is a wholly owned subsidiary of Sri Lanka Telecom. In January 2004, the company launched its fully-fledged 2.5G GSM network that is EDGE/GPRS enabled and designed to operate on dual band. In December 2007, the company launched its 3.5G HSPA network - the first Super 3.5G network in South Asia. Investments committed to date in the 3.5G/2.5G networks and service offering amounts to over US$300 mn. The company plans to increase its number of base stations to 2000 by the end of 2009.
Citi, the leading global financial services company, has approximately 200 million customer accounts and does business in more than 140 countries. Through its two operating units, Citicorp and Citi Holdings, Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, and wealth management. Additional information may be found at www.citigroup.com or www.citi.com.