Deutsche Bank in Sri Lanka: A conversation on strategy, commitment, and growth

Deutsche Bank Group India and Emerging Asia CEO Kaushik Shaparia – Pic by Sameera Wijesinghe

Germany’s multinational financial services giant Deutsche Bank Group’s India and Emerging Asia CEO Kaushik Shaparia was in Sri Lanka recently and met up with the Daily FT for an exclusive interview. Following are excerpts of the interview in which Shaparia recaps the role of Deutsche Bank in Sri Lanka as it marks 45 years of operations this year and reiterates commitment to further strengthen its role in Sri Lanka as well as in emerging Asia. Deutsche Bank Sri Lanka CCO Niranjan Figurado was also present during the interview.

By Nisthar Cassim

Q: Deutsche Bank has a long-standing presence in Sri Lanka. Could you tell us about your history in the country and how your role has evolved over time?

A: Certainly. Deutsche Bank has had a deep and enduring relationship with Sri Lanka for over four decades. We first established our presence in 1980 and have since been an integral part of the country’s financial ecosystem. Over the years, our focus has been on supporting Sri Lanka’s growth through our strengths in corporate and investment banking, trade finance, and global markets. Even through periods of volatility, including the recent economic challenges, Deutsche Bank has remained committed to the market. We view Sri Lanka as an important partner, not only in the South Asian context but also as part of our broader Asia-Pacific strategy.

Q: What differentiates Deutsche Bank’s operations in Sri Lanka from other international players?

A: Our differentiation comes from two core elements — consistency and capability. We have maintained an uninterrupted presence in Sri Lanka for over 40 years, which is rare among global banks. This continuity has enabled us to build deep client relationships, understand the regulatory environment, and provide stable, long-term support to our clients. Additionally, Deutsche Bank combines global expertise with local execution. We bring in the strength of our international network while tailoring solutions to meet Sri Lankan clients’ needs, whether it’s around trade financing, foreign currency, risk management, or capital market access.

Q: Sri Lanka has gone through a challenging period economically. How did Deutsche Bank navigate the crisis and support the country during that time?

A: The last few years have undoubtedly been difficult for Sri Lanka. But for Deutsche Bank, our approach was one of stability and partnership. We stood by our clients and the Government, continuing to facilitate key financial flows and ensuring that essential trade and corporate activities could continue. Our focus was not on short-term profitability, but on being a responsible and reliable financial partner. We continued to manage payments, foreign exchange, and trade transactions for key sectors, including essential imports such as energy and healthcare. That consistency reinforced our reputation as a trusted institution during turbulent times.

Over the years, our focus has been on supporting Sri Lanka’s growth through our strengths in corporate and investment banking, trade finance, and global markets. Even through periods of volatility, including the recent economic challenges, Deutsche Bank has remained committed to the market. We view Sri Lanka as an important partner

Q: How is Deutsche Bank positioned today as Sri Lanka embarks on its recovery journey?

A: We are cautiously optimistic. The macroeconomic indicators are showing improvement, and international confidence is gradually returning. Deutsche Bank is well-positioned to support both public and private sector clients as they rebuild and attract fresh investment. We are focusing on helping Sri Lanka re-engage with global capital markets, facilitate foreign investment flows, and strengthen its trade linkages. We continue to work closely with multinational clients investing in Sri Lanka, ensuring they have access to global financial solutions within a sound risk and compliance framework.

Q: From your vantage point, what is the investment narrative for Sri Lanka today?

A: Sri Lanka is at an inflection point. Following the debt restructuring and the implementation of key reforms, there is a renewed sense of stability. The country’s strategic location — at the heart of major shipping routes connecting Asia, the Middle East, and Africa — gives it a unique advantage. We believe sectors such as logistics, manufacturing, renewable energy, and tourism have significant growth potential. As investor sentiment strengthens, Deutsche Bank stands ready to facilitate cross-border capital flows, support foreign direct investment, and provide advisory expertise to both domestic and international stakeholders.

Q: How does Sri Lanka fit within Deutsche Bank’s broader Asia-Pacific strategy?

A: Asia-Pacific continues to be one of Deutsche Bank’s most dynamic and strategically important regions. Within this, Sri Lanka holds a meaningful position as a smaller but significant market — particularly for trade, treasury, and institutional banking. Our presence here complements our regional network across India, Singapore, Hong Kong, and Southeast Asia. It allows us to serve clients with regional operations and provide them with seamless banking solutions across geographies. In essence, Sri Lanka is part of a wider Asia growth story that Deutsche Bank is deeply invested in.

Q: How would you describe Asia’s importance within Deutsche Bank’s global network?

A: Asia is central to Deutsche Bank’s global strategy. The region contributes a significant share of our global business and has consistently demonstrated resilience and growth potential. What makes Asia unique is its diversity — both in terms of economic maturity and regulatory frameworks. We see developed markets like Singapore and Hong Kong complementing fast-growing economies such as India, Indonesia, and Vietnam. This diversity allows us to balance growth opportunities with stability.

Q: Within this regional context, how does Deutsche Bank differentiate itself from competitors?

A: Our strength lies in being a truly global bank with deep local roots. Deutsche Bank’s client relationships in Asia often span decades — relationships built on trust, consistency, and the ability to deliver across market cycles. Unlike some institutions that have entered and exited markets, we have remained committed even through challenging periods. That continuity builds confidence. We also leverage our universal banking model — combining corporate banking, investment banking, and transaction banking capabilities — to offer clients holistic solutions. Another differentiator is our risk discipline and regulatory alignment. Clients value Deutsche Bank’s ability to navigate complex cross-border transactions while maintaining the highest standards of compliance and governance.

Q: Could you elaborate on the client segments Deutsche Bank focuses on in Asia?

A: Our primary focus is on large corporates, financial institutions, sovereigns, and global multinational clients operating across the region. These are clients who require sophisticated cross-border solutions — in areas such as trade finance, global markets, capital raising, and treasury services. In recent years, we have also expanded our engagement with high-growth sectors like renewable energy, infrastructure, and technology, which align with Asia’s long-term transformation agenda. Additionally, we support inbound and outbound investment flows — for example, Asian corporates investing overseas or international clients investing in Asia. Our strong balance sheet and global footprint allow us to facilitate such complex flows seamlessly.

Our differentiation comes from two core elements — consistency and capability. We are not here for a cycle; we are here for the future. Our clients know that we bring global expertise, local understanding, and an enduring sense of partnership. In essence, our goal is to grow with Sri Lanka — responsibly, sustainably, and with a shared vision for progress

Q: How does Deutsche Bank balance global strategy with local market realities in Asia?

A: It’s about achieving the right equilibrium between global consistency and local relevance. Our global strategy defines our risk appetite, product suite, and governance framework. But the way we execute — the client conversations, market engagement, and partnerships — is tailored to each country’s context. For instance, the client needs in Japan or Singapore may differ vastly from those in India or Sri Lanka. So, we empower our local leadership teams to operate with agility while staying aligned to our global standards. This balance enables us to be both globally integrated and locally responsive.

Q: In a region with diverse regulatory frameworks, how does Deutsche Bank ensure strong compliance and governance?

A: That’s an area where Deutsche Bank has always maintained very high standards. We have robust risk and control mechanisms embedded into our operations, and our governance frameworks are aligned with both global and local regulatory requirements. In Asia, we have invested significantly in strengthening our compliance infrastructure — from transaction monitoring and KYC processes to ESG due diligence. Our objective is not merely to meet regulatory expectations, but to anticipate them. This disciplined approach has been critical to sustaining our reputation and enabling us to support clients confidently, particularly in sensitive or high-complexity transactions.

Q: You mentioned ESG — how is Deutsche Bank integrating sustainability into its business strategy in Asia?

A: Sustainability is a core pillar of Deutsche Bank’s global strategy, and Asia is a key focus region in this regard. We are working closely with clients to help them transition to more sustainable business models — through green finance, ESG-linked loans, and advisory solutions. We have facilitated financing for renewable energy, energy efficiency, and social impact projects. Importantly, we also integrate ESG considerations into our own risk and lending frameworks. In Sri Lanka, for instance, we see opportunities in renewable energy and sustainable infrastructure, and we’re exploring ways to align financing solutions with the country’s sustainability agenda.

Q: How does Deutsche Bank view competition in Asia’s evolving financial landscape, particularly with the rise of local and regional players?

A: Competition in Asia is intense and increasingly multi-dimensional. Local banks have grown stronger, regional players are expanding, and Fintechs are introducing new models. For Deutsche Bank, this dynamic is healthy — it pushes us to innovate continuously. Our focus remains on complex, high-value segments where our global expertise, risk management, and cross-border capabilities create real differentiation. We don’t compete on scale alone; we compete on sophistication, trust, and long-term partnership. That’s where our value proposition stands out.

The EU, led by Germany, is showing renewed commitment in trade, defence, and infrastructure. Corporates are also taking active roles. This creates opportunities for countries like Sri Lanka, strategically positioned for maritime trade and with an educated workforce, to benefit from increased European engagement

Q: What has been the key to Deutsche Bank’s longevity and credibility in markets like Sri Lanka, where global players often face volatility?

A: I would attribute it to three factors — commitment, prudence, and partnership. Commitment, because we have never been a fair-weather player. Deutsche Bank has stayed engaged in Sri Lanka through economic highs and lows, supporting the country’s trade flows and corporate needs without disruption. Prudence, because we have maintained disciplined risk management throughout our operations. We have always been careful about portfolio quality, governance, and regulatory compliance — and that’s why our franchise remains strong even in challenging environments. And partnership, because our relationships go beyond transactions. We work collaboratively with clients, regulators, and policymakers — with the goal of contributing to long-term institutional and economic development.

Q: How do you see Deutsche Bank’s role evolving as Sri Lanka continues its economic recovery and reforms?

A: As Sri Lanka continues on its reform path, Deutsche Bank’s role will be to facilitate re-engagement with global markets, support the inflow of capital, and enable trade growth. We see opportunities to help the Government and private sector access new forms of financing — including sustainability-linked instruments and structured solutions that attract international investors. At the same time, we will continue to play our traditional strengths — trade finance, treasury solutions, and risk management — which are essential to stabilising and strengthening the economy’s external sector. Ultimately, our role is to be a bridge — connecting Sri Lanka’s aspirations with global financial markets and investors.

Q: Given the evolving global environment, what opportunities and challenges do you foresee for Deutsche Bank in Asia?

A: The opportunities are substantial. Asia continues to be the world’s growth engine, driven by demographics, consumption, and innovation. Sectors such as digital infrastructure, energy transition, and cross-border investment will define the next decade. For Deutsche Bank, this means we can play to our strengths — providing financing, advisory, and risk management solutions that enable growth across these sectors. The challenges, of course, include navigating a complex geopolitical landscape and managing regulatory divergence across markets. But our diversified presence and disciplined approach give us the resilience to adapt. We are confident that our franchise in Emerging Asia will continue to grow in both relevance and scale.

Q: How does Deutsche Bank balance profitability with purpose — especially in developing markets like Sri Lanka?

A: For us, profitability and purpose are not in conflict — they are interdependent. Long-term profitability comes from building relationships founded on trust and delivering value that supports economic growth and social progress. In Sri Lanka, for instance, we are not just facilitating financial transactions; we are contributing to the country’s recovery story. Every trade we finance, every payment we process, every client we advise — these activities have a real-world impact. Purpose also extends to how we conduct business. We invest in local talent, promote sustainability, and uphold the highest governance standards. That’s how we define responsible banking.

Q: What is your long-term outlook for Deutsche Bank’s presence in Sri Lanka and the broader region?

A: Our outlook is one of cautious optimism, anchored in commitment. We see Asia continuing to be a major growth engine globally, and Sri Lanka — with the right reforms and stability — can position itself as a regional hub for trade and investment. Deutsche Bank will continue to play a long-term role in that journey. We are not here for a cycle; we are here for the future. Our clients know that we bring global expertise, local understanding, and an enduring sense of partnership. In essence, our goal is to grow with Sri Lanka — responsibly, sustainably, and with a shared vision for progress.

 

Q: What differentiates Deutsche Bank in wholesale banking?

A: Our edge lies in international trade and finance. Before China became the world’s largest exporter, Germany held that position—not just through well-known DAX-listed firms like Daimler or BASF, but also through the Mittelstand. These mid-sized companies, with revenues ranging from one to four billion euros, are the hidden champions of global trade. Almost every Fortune 500 company has German technology embedded in its supply chain, much of it sourced from these firms. These companies operate in more than 150 countries and need a bank that understands their international needs. Deutsche Bank plays that role. We are not just a financier, but a partner who helps clients navigate complex cross-border requirements.

Q: Do you see the shift from retail to wholesale banking affecting competition?

A: Competition is part of the business, and it only makes us sharper. Banks that step away from retail may lose the benefit of low-cost liabilities, which could limit their ability to serve corporates competitively. For us, the focus remains clear: we want to be our clients’ first point of call.

Q: What does it mean when Deutsche Bank calls itself a ‘Global Hausbank’?

A: It reflects our ambition to be the first port of call for clients—whether for advice, financing, or navigating opportunities and risks across markets. We support clients both locally and globally, delivering consistent service wherever they operate. That seamless global coverage is what defines a Hausbank.

Q: How do you see Europe’s renewed focus affecting Sri Lanka and Asia?

A: Europe has historically focused inward, but recent geopolitical changes have been a wake-up call. The EU, led by Germany, is showing renewed commitment in trade, defence, and infrastructure. Corporates are also taking active roles. This creates opportunities for countries like Sri Lanka, strategically positioned for maritime trade and with an educated workforce, to benefit from increased European engagement.

Q: What advice would you give Sri Lanka for accelerating growth?

A: Policy clarity is critical. Structural reforms, digitalisation, and prudent infrastructure investment are essential. Equitable social spending alongside infrastructure development ensures the country is positioned efficiently for business. Strengthening regulatory processes and financial governance is also vital for long-term confidence and growth.

Q: How has Sri Lanka’s sovereign rating impacted Deutsche Bank’s operations?

A: While external ratings were initially challenging, we remained committed, focusing on the country’s credible recovery plan. Sri Lanka has surpassed expectations in meeting its obligations and maintaining fiscal discipline. We adopt a forward-looking perspective, evaluating long-term plans rather than short-term setbacks.

Q: Are there any specific plans for the bank in Sri Lanka next year?

A: Our global board will announce strategic plans later this year. Once those are confirmed, we will define regional priorities and focus areas. We will prioritise key initiatives to ensure meaningful execution rather than dispersing efforts across too many fronts, ensuring measurable impact for our clients and the market.