Sri Lanka rupee closes weaker to dollar; bond yields steady

Wednesday May 6, 2026 12:58 pm

ECONOMYNEXT – ACAP Stock Brokers (Pvt) Ltd has pivoted to a boutique advisory model focusing on research-driven foreign direct investment (FDI) after a five-month restructuring under its new owner Stallion Consultancy.

It is now positioning itself as a gateway for foreign investors into the Sri Lankan capital market, specifically targeting Japan, Australia, Switzerland, and Austria.

“We aim to create meaningful opportunities for both local and international investors to succeed in the Colombo Stock Exchange,” Manil Fernando, Director, ACAP Stock Brokers told Economynext, noting that the CSE closed 2025 as one of Asia’s best-performing frontier markets with returns exceeding 40%.

The company has sought regulatory approval to appoint a Swiss national to its board, with plans to include Japanese and Malaysian directors to bolster investor confidence.

However, the firm acknowledged structural hurdles, such as the ‘tricky’ process of foreign nationals opening Special Investor Foreign Currency Accounts (SIA).

Management indicated they are working to streamline these processes to prevent the frustration that often leads foreign capital to faster markets like Singapore.

The company, previously under Asia Capital, is now majority owned by Stallion and Chairman Stefan Abeyesinhe, with a Malaysian investor holding a minority stake.

Following the acquisition, management opted for a ‘measured and organic growth strategy’ over rapid expansion, prioritizing the clearing of ‘old baggage’ and ensuring full regulatory compliance, the company said.

“We are a small company. We are very aware of that,” Stefan Abeyesinhe, Chairman, ACAP Stock Brokers, told reporters, adding that the company will focus on offering personalized services.

“I’ve always been very pro Sri Lankan capital markets, because I think we’ve always punched above our weight.”

Abeyesinhe, who previously led Asia Securities, noted that while the Colombo Stock Exchange (CSE) is small at roughly 1.5 trillion rupees, it offers significant growth potential with a Price-to-Earnings (PE) ratio of 10.5-11.

A key pillar of ACAP Stock Brokers’ restructure involves reactivating a largely dormant client base. Of its 3,000 registered clients, only 1,200 are currently active.

“We have about 3,000 clients already in our portfolio, out of which about 1,200 are active. So our initial focus is to reactivate the other 1,500,” Fernando said.

Abeyesinhe said that despite concerns over currency volatility and recent security breaches in the financial sector, the pitch to foreign investors remains focused on market valuations and resilience.

“The entire US markets, people are minting money. You know, some get hammered, some make money. It’s volatility that makes the market attractive to most,” he observed.

To differentiate itself from larger competitors, ACAP is emphasizing ‘bespoke research’ and analytics.

Fernando said the firm aims to move beyond generic reports to provide clear, actionable intelligence for both local and international investors. (Colombo/May06/2026)