Asia Asset Finance PLC has announced a Rs. 1.5 billion Rights Issue, marking a step towards strengthening its capital position and accelerating the company’s next phase of growth.

In a disclosure to the Colombo Stock Exchange, the company stated that its Board of Directors, at a meeting held on 10th June 2026, resolved to recommend a Rights Issue of Ordinary Voting Shares to existing shareholders. The issue will comprise 45,162,012 Ordinary Voting Shares at Rs. 33.30 per share, amounting to Rs. 1,503,894,999.60.

The Rights Issue will be offered on the basis of four new Ordinary Voting Shares for every eleven existing Ordinary Voting Shares held. The company’s current shareholding stands at 124,195,533 Ordinary Voting Shares.

The main objective of the Rights Issue is to strengthen the company’s Tier 1 Capital in line with Central Bank of Sri Lanka regulatory requirements. Beyond compliance, the new capital is expected to support increasing business volumes, improve lending capacity and enable the company to serve more customers.

Commenting on the announcement, Rajiv Gunawardana, Chief Executive Officer of Asia Asset Finance PLC, said: “This Rights Issue reflects our confidence in the future of Asia Asset Finance PLC and our commitment to building a stronger, more resilient financial institution. Strengthening our Tier 1 Capital is not merely a regulatory requirement; it is a strategic investment in our growth, our customers and our shareholders. With this enhanced capital base, we will be better positioned to expand our business, serve more customers and deliver sustainable long-term value.”

Asia Asset Finance PLC continues to stand as one of Sri Lanka’s trusted finance companies, supported by 55+ years of legacy in the financial services sector. With an asset base of over Rs. 50 billion, a 117-branch island-wide network and a Fitch A+(lka) rating, the company has continued to demonstrate stability, strength and customer confidence.

The company is further strengthened as the only Sri Lankan subsidiary of Muthoot Finance, one of India’s largest and most respected financial services groups. This backing provides financial heritage, regional expertise and added credibility in the Sri Lankan market.

With a diversified portfolio covering gold loans, leasing, , fixed deposits, mortgage loans, business finance and other customer-focused solutions, Asia Asset Finance PLC continues to support individuals, entrepreneurs, SMEs and communities island-wide.

The proposed Rights Issue is subject to in-principle approval from the Colombo Stock Exchange and shareholder approval.

At a time when capital strength, trust and resilience are vital, Asia Asset Finance PLC’s latest move sends a clear message. The company is positioning itself for disciplined expansion, stronger customer service and sustainable long-term growth.