Android : Error starting android studio - getting java.lang.NoClassDefFoundError

I had been using OpenJDK for android studio. Recently I migrated to Oracle JDK 8.

Now, when I try to start android studio using ./studio.sh, I get following error.

Exception in thread "main" java.lang.NoClassDefFoundError: Could not initialize class java.awt.Toolkit at java.awt.Component.<clinit>(Component.java:593) at com.intellij.idea.Main.showMessage(Main.java:237) at com.intellij.idea.Main.showMessage(Main.java:224) at com.intellij.idea.Main.main(Main.java:87)

I have set JAVA_HOME and have verified by putting echo statement in studio.sh file.

Can anybody help to identify problem? Or do I need to go back to OpenJDK or reinstall Android Studio?