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New Country Head and CEO of CitiBank Dennis Hussey yesterday reaffirmed the global giant’s commitment to Sri Lanka though he opined that the country has lot to do to become a true financial hub in the region.

In an exclusive interview with The Bottom Line Mr. Hussey said the global giant was committed to banking in Sri Lanka. “We have been here since 1979 and we do intend to grow and stay in Sri Lanka,” he added.

Though it has been a longstanding facilitator of previous state borrowing from foreign capital markets, CitiBank failed to secure the joint lead manager slot for the US$ 500 million sovereign Bond Issue of the Government.

“We wish all the very best for the bond issue. This will be very important to Sri Lanka and the issue would take 12 to 18 months to materialize,” Hussey added.
Asked as to whether Sri Lanka had the potential of becoming a financial hub as envisaged by policy makers, Hussey said that plenty of work were needed to be done in spheres of legislation and regulations.

The Bank would continue to look into local securitisation as well debt securitisation activities in the country, Hussey added.
On Monday Citi, one of the first foreign banks to enter Sri Lanka since liberalization, structured a solution for Ceylon Petroleum Corporation (CPC) to manage its price volatility and to provide relief in prevailing market conditions for a part of its oil imports.

Concerned with the inflationary impact that high oil prices were having on the economy, the Central Bank of Sri Lanka (CBSL) had encouraged CPC to explore ways of mitigating this risk. In this light, the management team at CPC has adapted a structured risk mitigating strategy that includes fuel hedging. At the request of CPC, Citi closely examined the company’s requirements and specific market views, and using its global expertise , has structured a product that utilizes CPC’s view on oil prices (crude and refined products), while providing participation to an extent in falling prices. The creative collaborative effort by the senior management teams at CPC and Citi, working across countries and time zones to provide a quick turnaround in a volatile market, sets apart this trade for its innovation, teamwork and results.

Citi was one of the key banks that worked closely from the very beginning with the stakeholders to provide solutions to manage exposure to high oil prices. Since 2004, Citi has been regularly bringing in a number of risk management experts to Sri Lanka to share their experiences with regulators; financial institutions and corporate, and has conducted various training programs in this context. In late 2006, the Central Bank recommended mitigating inflation through managing risk on fuel prices, a move that was endorsed by the Ministry. CPC started hedging oil prices in early 2007.
CitiBank N.A. Sri Lanka Branch commenced its operations in December 1979 as a full service branch of CitiBank N.A. New York and has been a part of Sri Lanka’s active financial market since inception.

Fitch Ratings (Lanka) Ltd rated CitiBank N.A. Colombo Branch AAA (Ika) in 2003 making CitiBank the first ‘AAA’ rated Commercial Bank in Sri Lanka. It has thus maintained this rating for 4 consecutive years.

CitiBank N.A. Colombo offers a full range of Corporate Banking products including Cash Management, Trade Financing, Corporate Finance, Treasury and Liquidity Management solutions to Local Corporates, Multi National Corporations, Financial Institutions and Institutional customers including Non-Governmental Organizations, meeting their most complex requirements through flexible, structured and cost effective solutions.