Seven months after coming under new ownership, ACAP Stockbrokers (ASB) is attempting to reposition itself as a more internationally connected and research-focused player within Sri Lanka’s capital markets.
Backed by Stallion Group’s experience, the firm is focused on attracting new foreign investment into the Colombo Stock Exchange while expanding access to investment insights for a wider range of investors. In this conversation, we spoke with Stefan Abeyesinhe, Chairman, Malik Fernando, Managing Director, and Dr. Manil Fernando, Director, at ASB about the firm’s transformation, its strategy for attracting international capital, and its long-term vision for growth.
When the new management took over ASB, what was the vision for the company, and how has that transformation progressed?
Stefan Abeyesinhe: About seven months ago, Stallion acquired ASB as part of its expansion into a new industry. Stallion already operates across several sectors, and we saw strong long-term potential in the capital markets space. Our first priority after the acquisition was to stabilise and strengthen the business. We recapitalised the company, ensured compliance, streamlined operations, addressed operational issues, and brought in a new yet experienced team.
We wanted to build a solid foundation before actively going to market. Over the past six months, that has been our main focus. Now we are looking to grow the business with a refreshed team and stronger research capabilities.
Strategically, our vision differs slightly from many traditional brokerage houses because we see significant untapped potential in attracting foreign investment into Sri Lanka. We believe the combination of Stallion’s broader capabilities and the ASB platform puts us in a strong position to help bring new investors into the market.
How are ASB reaching wider audiences and driving more investment into the CSE?
Dr. Manil Fernando: We already have an established network of clients and relationships in markets such as Japan, Singapore, and Australia. Combined with our private equity background, this shapes how we engage with investors and position opportunities in Sri Lanka.
A major part of our strategy is attracting foreign investment into the CSE through overseas networks, consulates, and institutional connections. In mature markets like Australia and Japan, investors are increasingly looking for new growth opportunities, and Sri Lanka is becoming part of that conversation.
When presenting Sri Lanka, we highlight the strength of the regulatory framework, the quality of several established listed companies, and the market’s attractive valuations. From there, our role is to identify investors with the right risk appetite and support them with detailed research, market intelligence, and the broader long-term growth story of the country.
Why has research been such a central priority for ASB under the new management?
Malik Fernando: Good research gives investors insight into a company’s performance, valuation, growth potential, and direction. While markets will always react to rumours and speculation, our focus is on building a more research-driven approach.
The question for us was how to differentiate ourselves in a market that already has strong broking firms and capable analysts.
Our answer was to make quality research more accessible. Whether someone is investing a few hundred thousand rupees or several million dollars, we want them to receive the same level of insight and support. That is especially important for retail investors, who often rely on speculation because they lack access to meaningful research. We want to democratise that access and help a wider group of investors make informed decisions with confidence.
At the same time, we want our research to be more responsive and tailored. We aim to provide more bespoke insights based on a client’s interests, sector focus, or investment size. Because we are still a lean operation, we also have the agility to respond faster and work more closely with clients.
Over time, we plan to use AI tools where appropriate to lower the cost of producing high-quality research and make that level of analysis accessible to even more investors.
ASB positions itself as a bridge between the CSE and international investors. How large is the opportunity, and what is the firm’s strategy to capture it?
Malik: For diaspora and international investors, the main concerns are currency stability, repatriation, transparency, and clarity. We’ve spoken to many overseas Sri Lankans, and there is a clear interest in participating in Sri Lanka’s capital markets. Many have built successful lives abroad but still want exposure to Sri Lanka and to be part of its growth story.
What we’ve also learned is that investors are far more comfortable when they have a point of contact in their own market. Whether they are in Australia or elsewhere, they want direct access to someone they can speak to and trust. That emphasis on transparency and accessibility has shaped our overall approach.
As a result, our strategy is focused on simplifying the investment process through easier account opening, stronger investor education, and detailed research so investors understand not just what to buy, but also why.
At the same time, the opportunity extends well beyond the diaspora. Sri Lanka’s market already includes several major listed companies and strong businesses across banking, finance, manufacturing, exports, conglomerates, and tourism. Equally important is the regulatory framework led by the Central Bank, CSE, and SEC, which gives international investors greater confidence in the market.
Taken together, these factors give us strong confidence in Sri Lanka’s long-term potential. Internally, our target is to attract around US$100 million in fresh capital over the next 24 months. For a firm of our size, we believe that it is ambitious but achievable.
Where do you see ASB in the next three to five years?
Stefan: Right now, we are still a relatively small firm, and building a brokerage business takes time, capital, and consistency. When we acquired ASB, the first goal was to become relevant again, and I believe we are on track to achieve that.
Over the next two to three years, we want to establish ourselves as a genuine option for anyone looking at Sri Lanka’s capital markets. Long term, our ambition is to break into the top 10 within the next five years. We plan to get there by focusing on strong customer service, accessible research, long-term client relationships, and creating better access for international investors into the CSE.
We also recognise that many investors today are looking beyond financial returns and are increasingly conscious of the social and economic impact of their investments. Part of our role is helping connect them with opportunities that deliver both financial value and meaningful impact, whether through job creation, business expansion, or wider economic growth.
We believe that it will become an increasingly important part of attracting international investment into Sri Lanka.