Leadership duo Yudhi Kanagasabai and Raju Radha stabilize one of Sri Lanka’s pioneer investment banks to pave the way for long-term revival.

Asia Capital PLC has achieved a major breakthrough in its financial recovery, securing a LKR 1.5 billion debt rebate on a LKR 1.8 billion obligation owed to shareholder creditor Fast Gain International Ltd.

The agreement, executed on June 30, 2026, and disclosed to the Colombo Stock Exchange on August 25, slashes the Group’s corporate preference facility obligations by 83%, leaving a remaining balance of LKR 300 million.

The resolution represents the culmination of complex, multi-year negotiations initiated in 2024 to address legacy debt overhangs. Historically a dominant force in Sri Lanka’s corporate and investment landscape, Asia Capital faced severe operational headwinds in recent years. To meet high overhead costs and honor debt commitments, the Group was compelled to downsize its operations, liquidate non-core assets, and rely on structured shareholder financing to settle historical liabilities, including bank commitments linked to hotel development projects.

Throughout this period of consolidation, operations were placed under rigorous internal oversight to streamline expenditure and protect business continuity. The successful negotiation of the LKR 1.5 billion rebate marks the conclusion of this difficult operational realigning phase and sets the stage for a new corporate chapter.

Under the leadership of Chairman Yudhishtran (Yudhi) Kanagasabai and Managing Director Raju Radha, the management team prioritized long-term balance sheet stability over temporary fixes.

"Securing this rebate marks a decisive turning point for Asia Capital," said Yudhishtran Kanagasabai, Chairman of Asia Capital PLC. "It reflects a disciplined effort alongside our key shareholders to resolve long-standing liabilities cleanly and transparently. By removing this significant financial overhang, we have stabilized the balance sheet and established a solid, sustainable foundation for future corporate governance and growth."

"This process was never simply about reducing a number on the ledger; it was about protecting the institution's future direction," added Raju Radha, Managing Director of Asia Capital PLC. "We navigated a complex, high-pressure period with our creditors in a constructive manner. The outcome provides us with the financial resilience required to refocus on expanding our core footprint across Sri Lanka’s capital-markets landscape."

The substantial debt relief significantly enhances Asia Capital’s balance sheet equity and provides immediate operational flexibility. Rather than being constrained by legacy debt obligations, management can now direct resources toward strategic initiatives and new market opportunities.

Leveraging its decades-long heritage as one of Sri Lanka’s pioneering investment banking institutions, Asia Capital plans to rebuild its presence in wealth management, corporate advisory, and capital market services. With its debt structure realigned and balance sheet restored, the Group enters its next phase of development with renewed momentum and a sharp focus on sustainable, long-term value creation.

Photo Caption: From left:  Asia Capital PLC Chairman Yudhishtran Kanagasabai, Managing Director Raju Radha