Yudhi and Raju Radha Revive One of Sri Lanka’s First Investment Banks
COLOMBO, Asia Capital PLC has taken a major step in strengthening its financial position after successfully securing a LKR 1.5 billion rebate on a LKR 1.8 billion debt owed to Fast Gain International Ltd, marking a significant milestone in the Group’s restructuring and its renewed focus on sustainable long-term growth.
“This was not simply a matter of reducing a number on the balance sheet. It was about protecting the future direction of Asia Capital and ensuring that the Group has the financial resilience to move forward. We have worked through a challenging period with our creditors in a constructive and disciplined manner, and the outcome reflects sustained engagement, careful negotiation and a shared understanding of the importance of a sustainable solution.” — Raju Radha, Managing Director, Asia Capital PLC said adding details of the transaction.
The achievement follows a prolonged period of financial restructuring during which Asia Capital undertook difficult but necessary measures to preserve the business and address its financial obligations.
Asia Capital was once a well-established and sought-after name in Sri Lanka’s corporate and investment landscape. Over time, however, the company incurred losses for a variety of reasons and was compelled to borrow to meet its high operational costs. As the financial pressures continued, the Group downsized its operations and sold selected business portfolios to settle borrowings and streamline the business.
Thereafter, the company relied on funding from its shareholder company, Fast Gain Pvt Limited, to meet operational and capital expenditure requirements. Such expenditure was subject to scrutiny and approval by a designated control team, reflecting the increasingly disciplined approach adopted towards the Group’s financial management.
As this support continued, shareholder borrowings grew, and the company undertook the settlement of bank loans associated with the construction of hotels under negotiated settlement arrangements.
Since 2024, discussions have been ongoing between the company and its shareholder creditors regarding the restructuring of this shareholder debt. Those discussions ultimately culminated in the signing of the rebate agreement on June 30, 2026.*
The agreement, subsequently disclosed to the Colombo Stock Exchange on August 25, represents a substantial reduction of an obligation arising from several composite preference facility agreements entered into by Asia Capital.
Following the rebate, approximately LKR 300 million remains from the original LKR 1.8 billion obligation — an approximately 83% reduction in the debt concerned.
“For Asia Capital, this development represents more than a significant financial adjustment. It provides the Group with a stronger platform from which to pursue its future direction, strengthen its financial sustainability and continue building on its long-standing position within Sri Lanka’s investment and financial-services landscape.” — Raju Radha further said.
The company said the debt rebate forms part of its broader group restructuring programme, aimed at strengthening long-term debt sustainability and providing greater financial flexibility for continued operations and future growth.
The outcome follows sustained engagement with creditors over an extended period and represents the culmination of negotiations undertaken during a particularly challenging period for Sri Lankan businesses.
Rather than allowing financial difficulties to determine the Group’s future, management has sought to address its obligations through a structured process, combining operational rationalisation, portfolio decisions and negotiations with its creditors.
At the centre of that effort has been Managing Director Raju Radha, working alongside Chairman Yudhishtran Kanagasabai and the wider management team.
The successful restructuring now gives Asia Capital an opportunity to turn the page on a difficult financial chapter and focus more firmly on the future.
With its longstanding roots in Sri Lanka’s investment-banking and capital-markets landscape, the Group is seeking to build on its institutional heritage while establishing a stronger and more sustainable financial foundation.
“Asia Capital has been part of Sri Lanka’s investment and capital-markets story for decades, and we intend to remain focused on that future. We are proud of the fact that, even through challenging times, our team stayed focused on finding practical solutions rather than allowing difficulties to define the Group. The agreement reached with our major shareholders and creditors gives us a stronger platform from which to pursue the next phase of Asia Capital’s development,” Raju Radha highlighted.
The successful negotiation is significant not only because of the size of the rebate, but also because it provides greater clarity around a substantial shareholder-related obligation that had been the subject of restructuring discussions since 2024.
The leadership partnership of Yudhi Kanagasabai and Raju Radha brings together extensive professional experience and a clear understanding of Asia Capital’s historic position within Sri Lanka’s financial-services sector.
The significance of the restructuring will ultimately be measured by what the Group builds from this stronger financial foundation. For an institution with deep roots in Sri Lanka’s investment-banking history, the achievement provides an opportunity to renew its momentum and sharpen its focus on the future.
The LKR 1.5 billion rebate is therefore both a material financial achievement and an important strategic milestone. It reflects sustained negotiation, constructive engagement with creditors and a management commitment to finding solutions during difficult circumstances.
With a substantially reduced debt obligation and a clearer platform for its next phase, Asia Capital now moves forward with renewed financial flexibility and a continued focus on sustainable long-term growth.
For Asia Capital, the focus now shifts from addressing the legacy financial burden to building a sustainable future. With a substantially reduced debt obligation, greater financial flexibility and a renewed focus on its future direction, Asia Capital now enters its next chapter with the opportunity to build upon its heritage and strengthen its position for the years ahead.
About Asia Capital PLC
Asia Capital PLC (ACAP.N0000:CSE) is a listed entity and was founded in the early 1990s as a securities trading company specializing in stock brokering. Asia Capital PLC (ACAP) rapidly expanded its business portfolio to dominate the investment banking market in Sri Lanka. Over the years, the company ventured into diverse industries and sectors, fulfilling its vision of becoming a powerhouse providing value-added investment opportunities and unmatched wealth creation services. Today, ACAP’s operations span leisure, project management, investment banking, corporate finance, and advisory services, along with a presence in property management, real estate, asset management, and information technology services.
For more information:
Raju Radha – Asia Capital PLC 0722 766 720
