Stallion deploys Rs. 400 m to acquire and re-launch ACAP as part of a strategic move to strengthen Sri Lanka’s capital markets and attract foreign investment into listed equities. The initiative signals renewed confidence in the Colombo Stock Exchange’s growth potential.
Stallion deploys Rs. 400 m to acquire and re-launch ACAP, targets foreign inflows
Stallion-backed ACAP Stockbrokers has formally re-entered the market following a comprehensive acquisition, recapitalisation and restructuring process valued at close to Rs. 400 million. The brokerage, acquired for approximately Rs. 200 million, received an additional Rs. 150–200 million injection to address capital adequacy requirements, reinforce compliance frameworks and restore operational capacity.
The transaction, completed around five months ago, was not publicly disclosed at the time due to ongoing restructuring within a regulated environment. Market observers note that such phased disclosures are not uncommon in financial services, particularly when firms undergo significant internal transformation prior to re-entry.
The re-launch of ACAP comes after a deliberate effort to rebuild institutional capability. This included strengthening research functions, enhancing documentation standards and implementing robust internal processes. A new execution team has also been assembled to support trading operations and client servicing.
Managing Director Malik Fernando indicated that the firm adopted a measured approach before returning to active operations. He emphasised that rebuilding expertise and research depth was prioritised to ensure long-term sustainability and credibility in the market.
Chairman Stefan Abeysinghe outlined an ambitious growth strategy centred on mobilising foreign capital into Sri Lanka’s equity market. The firm is targeting $ 100 million in inflows over the next 24 months, with a focus on high-net-worth investors in Switzerland, Austria, Japan and Australia. These markets, he noted, are familiar to the firm, with over 15 years of experience in capital raising and investor engagement.
The strategy involves directing capital into a curated portfolio of approximately 40 listed companies, particularly those generating foreign currency earnings. This approach aligns with broader Colombo Stock Exchange investments trends, where export-oriented firms and businesses with dollar and euro revenue streams are increasingly attractive to international investors seeking currency hedging and growth exposure.
Abeysinghe highlighted that the relatively modest size of the Sri Lankan equity market—estimated at around Rs. 8.5 trillion—creates an environment where incremental capital inflows can significantly influence valuations and liquidity. In this context, even moderate foreign participation has the potential to drive market depth and investor confidence.
Director Dr. Manil Fernando stated that regulatory compliance was a central focus during the restructuring phase. The firm undertook extensive efforts to align with regulatory expectations, ensuring that governance structures, reporting standards and operational frameworks meet current market requirements. This groundwork was essential to restoring credibility and enabling sustainable operations post re-launch.
The broader vision underpinning the move reflects a growing emphasis on foreign investment Sri Lanka equities, particularly as the country continues its economic recovery and seeks to attract stable capital inflows. Market participants have increasingly recognised the importance of institutional-grade research and transparent processes in drawing international investors back into the market.
Beyond its brokerage operations, Stallion’s diversified portfolio spans several sectors. Its investments include Dynamic AV Technologies Ltd. in the audio-visual systems space, as well as a medical equipment business linked to global brand Arthrex through Ortho Lanka Ltd. The group is also involved in Serdaka Global Ltd., a bunkering venture in partnership with a Singapore-based firm, operating from the World Trade Centre and preparing to expand its maritime capabilities.
Looking ahead, Stallion is evaluating opportunities to expand into portfolio and wealth management services. Discussions with regulators are currently underway, although this is positioned as a medium-term objective rather than an immediate priority. The move would allow the firm to broaden its offering from execution-focused brokerage services to include advisory and asset management solutions.
Abeysinghe underscored that the investment thesis behind ACAP is closely tied to improving market depth and facilitating capital flows. By combining high-quality research with targeted investor engagement, the firm aims to create a structured channel for foreign funds to enter Sri Lanka’s equity market.
The re-entry of ACAP Stockbrokers comes at a time when Sri Lanka’s financial markets are gradually stabilising, supported by ongoing reforms and macroeconomic adjustments. Analysts suggest that initiatives such as this could play a pivotal role in enhancing liquidity, improving price discovery and strengthening the overall resilience of the capital market.
The move also reflects a broader shift towards institutionalisation within the brokerage sector, where compliance, research capability and investor outreach are becoming increasingly critical differentiators. As competition intensifies, firms that can effectively bridge local opportunities with global capital are likely to gain a strategic advantage.
In this context, Stallion deploys Rs. 400 m to acquire and re-launch ACAP represents more than a single transaction; it signals a broader effort to reposition Sri Lanka’s equity market as a viable destination for international investment. If execution aligns with strategy, the targeted inflows could contribute meaningfully to market expansion and long-term capital formation.