Colombo
Indian government-owned Mazagon Dock Shipbuilders Limited (MDL) has introduced its resolution to buy controlling stakes in Sri Lanka’s Colombo Dockyard in a $52.96 million deal.
The proposed acquisition, MDL’s first worldwide enterprise, would give the Mumbai-based ship constructing yard 51 % fairness in the Sri Lankan PLC that’s grappling with persisting losses. A widely known ship restore, ship constructing, heavy engineering and offshore engineering facility in Sri Lanka, CDPLC has been saddled in debt through the years (over LKR 28 billion, or roughly ₹ 8 billion, in quick and long run debt), Sri Lankan enterprise newspaper the Daily Financial Times reported on Saturday (June 28, 2025), terming the Indian firm’s acquisition “highly beneficial” for India and Sri Lanka. The transaction is anticipated to be accomplished in six months.
“Located in the Port of Colombo, Colombo Dockyard PLC (CDPLC) gives MDL a strategic foothold in the Indian Ocean Region– a key maritime corridor,” the MDL mentioned in a press release. Colombo Dockyard was not instantly out there for remark.
Last yr, Japanese firm Onomichi Dockyard, which held majority stakes in Colombo Dockyard, determined to exit from the agency. Colombo “urgently requested” New Delhi to “encourage Indian investors” to contemplate investing in Colombo Dockyard fearing the implications of a default, in accordance to official sources from the Indian aspect. As per the due course of adopted for a listed firm, Mazagon Dock Shipbuilders Ltd was shortlisted based mostly on their expertise in shipbuilding and monetary energy, the sources mentioned.
The growth, of an Indian firm buying controlling stakes on the facility situated inside the Colombo Port, comes amid New Delhi’s preoccupation with apparently rising Chinese outreach in the area. Over the previous couple of years, India raised concern with Sri Lanka a number of instances, over Chinese analysis vessel visits to its ports, prompting Colombo to impose a moratorium on overseas analysis vessels. President Anura Kumara Dissanayake’s authorities has mentioned it could evolve a brand new nationwide coverage on the go to of overseas vessels.
MDL will not be the primary Indian agency to enter the Colombo Port. In April this yr, Adani Ports and Special Economic Zone Limited commenced operations on the Colombo West International Terminal (CWIT) that it’s collectively growing with the Sri Lanka Ports Authority and Sri Lankan Conglomerate John Keells Holdings, adjoining to the China-backed Colombo International Container Terminal (CICT) on the Colombo Port.