First Capital Holdings, a full-service investment bank, recently expanded its operating model to target everyday investors. This broadened focus underpins the company’s commitment to expanding access to capital markets and improving financial literacy.
First Capital occupies a leading position amongst non-bank financial institutions in Sri Lanka, adapting its operations to changing market conditions and regulatory developments. While its financial performance in FY2025 was amongst the highest recorded in the firm’s history, its emphasis on governance, ESG oversight, digital innovation, and regulatory compliance supports long-term stability and growth. Dilshan Wirasekara, Managing Director & Chief Executive Officer of First Capital Holdings, and Randinith Madanayake, Assistant General Manager & Head of Marketing of First Capital Holdings, explain the reasoning behind the firm’s goals.
Can you highlight the milestones that paved the way to First Capital’s position as a leader in Sri Lanka’s capital markets?
Dilshan: In the early 1990s, when the Central Bank of Sri Lanka began offering licenses for primary dealers in government securities, First Capital was the first institution to secure this licence. Today, it remains the country’s oldest active primary dealer. The company’s journey began 40 years ago as a money-broking firm, acting as an intermediary for banks trading in foreign exchange and money market instruments. Over time, it steadily expanded its services and evolved into a full-fledged investment solutions provider.
Our expansion continued in the following decade. We secured our license to operate as an investment manager from the SEC, following which we obtained our license to manage unit trust funds. This early transition period was marked by key investments from shareholders including Singer Sri Lanka. The Schaffters acquired a minority stake in 2007, and we formally became a part of the Janashakthi Group in 2018.
First Capital grew significantly after its integration into the Janashakthi Group. It is now a leading primary dealer in government securities, and the firm’s assets under management now exceed Rs120 billion, making it one of the top three fund managers in Sri Lanka. Its corporate finance division is similarly among the top three advisory firms in the country. Last but not least is our smallest entity, the stockbroking arm, which completes our offering and ranks among the top 10 stockbrokers in Sri Lanka.
How does First Capital’s vision, ‘To Improve The Lives Of All Sri Lankans through financial solutions,’ impact your business, clients, and stakeholders?
Randinith: First Capital’s vision to ‘Improve the Lives of All Sri Lankans Through Financial Solutions’ is rooted in creating accessibility through digitalization, educating investors/the public, and product innovation. We are committed to making our research publicly available, enabling Sri Lankans of any background to access and benefit from our work. Transparency levels the playing field, enabling everyone to make informed financial decisions.
Our strategy extends beyond our clients, which is unique in a global context. Sri Lanka benefits when everyone has access to information and education, and an informed investor base is good for the country’s capital markets. In short: a stronger and more knowledgeable financial ecosystem uplifts everyone, which includes our clients and stakeholders.
These efforts may not yield immediate financial returns, but we are not too concerned. Our vision is long-term and country-wide, and our payoff will come as a result of capital market growth. First Capital’s transparent practices also serve to shift public perception of investing, especially regarding the risk involved. We want to change the mindset of Sri Lankans who have been savers all their lives, turning them into smart investors who drive the country forward. For this, they need a deeper understanding of capital market products and financial solutions, and that’s where we come in.
Our vision consists of internal strategies and public-facing efforts, pushing national financial literacy and economic growth at the same time. We see ourselves as a shareholder in Sri Lanka’s future.
In what way is First Capital working to drive inclusive growth and democratise access to capital markets in Sri Lanka?
Dilshan: Originally, the company’s vision was to become the largest investment bank in Sri Lanka. However, this didn’t feel like our true calling. Given our unique position as a market leader, an investment bank with years of expertise, and our comprehensive offering of capital market products, we eventually decided that we should adopt a broader, national agenda. This is where the vision to improve the lives of all Sri Lankans took on a higher purpose for us, and it’s become a part of everything we do.
A core part of our strategy lies in education. Financial literacy is key in making sound investment decisions, so this is one reason the firm makes its research public, and our channels now reach more than 12,000 subscribers. We also educate about the macroeconomics behind investment strategies, principles of investing, risk mitigation, and overall financial management. This helps people understand the long-term implications of their decisions, developing a culture of educated investment.
Randinith: Anyone can access hours of educational content online through First Capital’s digital platforms. We run a monthly educational series called Stock Talk and publish a range of videos that simplify everything from investment opportunities to global economic trends. This approach, which balances financial service with education, drives both inclusive growth and economic transformation in the country.
How do you envision the company’s role in supporting Sri Lanka’s broader economic development goals through capital market innovation?
Dilshan: One of First Capital’s foremost goals is to connect capital with opportunity, achieved by empowering investors, advising enterprises, and mobilising funds across diverse sectors. Our pivot to a retail-led model in asset management and stockbrokering is deliberate, driving public participation in capital markets. The country is on a path of economic recovery, so if we can turn domestic savings into productive investments, Sri Lanka’s prospects would improve.
For our part, we have been enhancing digital access to our services. By focusing on the customer experience, we can deepen broader investor confidence, which in turn builds a more resilient capital base.
First Capital has also moved its core of investment banking, which is the Corporate Finance and Advisory arm, into a distinct legal entity, in line with regulatory requirements. This eliminates conflicts of interest and improves transparency and credibility. This entity will take the lead in promoting access to capital for SMEs and cross-border enterprises. In turn, funds are channelled into sectors with a high developmental impact.
This is a glimpse of the actions we have taken, showing how capital market innovation can support macroeconomic stability, job creation, and sustainable, broadbased growth, especially when paired with governance and inclusion.
How does First Capital leverage its research capabilities and regional reach to provide unique market insights and investment opportunities?
Dilshan: In Sri Lanka’s investment landscape, First Capital stands out for its integration of three areas of research: macroeconomic analysis, fixed income, and equity markets. Firms typically focus on macroeconomics or equity research, but it is rare for them to be combined with in-depth fixed income analysis.
First Capital’s fixed income research is a strength, given that Sri Lanka’s capital markets are heavily influenced by government securities, and much of First Capital’s business is built around this asset class. Our debt structuring and government securities operations rely on an understanding of economic cycles, particularly the future of interest rates.
How is First Capital embracing digital innovation to transform the investor experience and financial service delivery?
Dilshan: Customers universally demand digital options for any transaction. Digital access is now the standard. First Capital introduced e-onboarding as early as 2022, a customer can open an account without visiting us in person or meeting with an agent.
At the time, the biggest obstacle was that regulations required us to meet the client to verify their identity, but this has changed. Today, technology allows us to speak with you over a video call while securely connecting to Sri Lanka’s Department of Registration of Persons, verifying your identity remotely and conveniently.
Many of our services have been transformed by the digital-first approach, and we are working on innovations that will exceed the current offerings of digital banking platforms. Mobile users have already seen one of these innovations in action; we are the first in Sri Lanka to allow transactions through WhatsApp. As we proceed, we will revolutionise how clients interact with their investments.
What steps has the company taken to enhance financial literacy and inclusion amongst underserved or first-time investors in Sri Lanka?
Randinith: An investor’s financial decisions may be influenced by a misunderstanding of basic macroeconomics. To address this, we focus on educating underserved and first-time investors in two main groups: university students and corporate employees.
Last year, we conducted more than 12 seminars at universities across the island, reaching over 2,000 students. This is the best time to teach future investors, broadening their understanding of market forces before they start earning and managing money. On the other hand, our work in the corporate sector allows us to engage with employees who struggle with making sound financial decisions. Stock Talk explores a variety of investment topics and fundamentals, sharing insights in a simple, relatable manner, and our videos likewise touch on financial products, global economic conditions, credit card usage, and so on. In the future, we intend to lobby the government to embed this type of financial education in the school curriculum.
What are First Capital’s core strategic priorities for the next five years in a rapidly evolving financial landscape?
Dilshan: Our digital initiatives and AI implementation are our top priority. The digital space is evolving faster than anywhere else, and we need to keep pace with that. The technology we have today will be obsolete in two years, so understanding and responding to that trajectory is critical.
Parallel to this, we strive to make customer service the foundation of every product we offer.
Many companies need to work harder to deliver the quality of service they advertise, and I don’t believe this is too difficult to do. All it takes is having the right processes in place, and the right mindset amongst your staff. We’ve already set ourselves on this path, where we at First Capital are constantly moving towards leadership in the customer service space.
Our third area of focus lies in learning where robotic process automation (RPA) can empower our team’s efforts. We want to eliminate routine tasks and free them up for more value-adding work. It’s about figuring out how we can get economies of scale to work for us.
Finally, First Capital believes that financial literacy is essential to advancing the national agenda. Education has the power to drive progress across all sectors, and finance is no exception. Unfortunately, many Sri Lankans find it difficult to understand basic financial management, legal principles, and even the Constitution itself.
At First Capital, we are committed to addressing this gap. By improving financial literacy, we aim to help solve some of the country’s most pressing challenges, paving the way for greater financial inclusion and sustainable wealth creation for all.
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