Citi Treasury and Trade Solutions, a division of Global Transaction Services, has been appointed primary cash management bank by Mobitel, a mobile telecommunications provider in Sri Lanka. This will enable the Citi to provide Mobitel with a customized solution to manage payments and collections across Sri Lanka.
Reportedly, for Mobitel, Citi will also provide integrated accounts receivable and payables solution to improve the visibility of control funds. The bank has said that in order to achieve this goal, it has created a customized solution comprising numerous services including outsourcing of daily cash and check collection and pooling of collected funds into concentrated account structures.
The bank has further added that the payments processing, which Mobitel had previously executed manually, will now be automated through CitiDirect online banking, a web-based banking platform. Under the solution provided, the bank will integrate both collections and payments into Mobitel’s ERP system for auto-reconciliation. Additionally, the bank will deploy an Easy Pay Kiosk Machine at Mobitel’s shop in Colombo to provide an alternative and convenient payment channel.
Mobitel also required a solution to streamline the issuance of withholding tax (WHT) certificate solutions, which are required by Sri Lankan law. 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.
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. The Citi team successfully structured a solution that enhances processes and provides value creation benefits to Mobitel.”
