Mazagon Dock acquires controlling stake in Colombo shipyard for $26.8 million, a move that will help counter China’s control of Lanka’s ports
NEW DELHI: India’s premier defense shipbuilder Mazagon Dock Shipbuilders Ltd (MDL) has acquired a 51% controlling stake in Colombo Dockyard PLC (CDPLC) for about Rs 249.5 crore ($26.8 million) in its first international acquisition.The deal, which brings Sri Lanka’s largest shipyard under its operational control, marks a transformative step in India’s maritime expansion strategy, the Mumbai-based defense public sector announced in a statement on April 9. The deal is said to involve the acquisition of a stake in Japan’s Onomichi Shipyard.The acquisition is strategically important for India to counter China’s growing maritime footprint in Sri Lanka. Beijing has a 99-year lease on the Hambantota port and regularly docks naval ships in Colombo, which has sounded alarm bells for New Delhi. MDL’s acquisition of a controlling stake in CDPLC is also seen as a geopolitical response to China’s growing influence in the Indian Ocean Region (IOR). CDPLC said this ownership structure further strengthens the institutional and strategic ties between the Indian and Sri Lankan maritime industries.“The Board of Directors of CDPLC has been reconstituted with nominees from MDL: Capt Jagmohan (Retired), CMD, MDL, appointed as Non-Executive Chairman (effective April 7, 2026), Mr. Biju George, Director (Shipbuilding), MDL, Mr. Ruchir Agrawal, Director (Finance), MDL, Mr. Thimira S. Godakumbura who continues as Managing Director and CEO of CDPLC and Govindasamy, Vice Chairman, Vish Sunshine Holdings PLC serves as a nominated director of MDL,” an official statement said.Captain Jagmohan (Retd), CMD of MDL and current Chairman of CDPLC, said, “The acquisition of CDPLC by MDL is a landmark moment, not only for both our organizations but also for maritime cooperation between India and Sri Lanka. The signing of the DCI MoU and our continued engagement with SCI is the first tangible outcome of this partnership. We are confident of achieving 20% growth in the revenue and profits of CDPLC during the current financial year.”“Listed on the Colombo Stock Exchange, CDPLC is the flagship player in Sri Lanka’s maritime industry, servicing a wide range of commercial and government clients in Asia, West Asia and Africa.MDL’s strategic support enabled CDPLC to secure the largest shipbuilding contract in its 52-year history, a $150 million contract with Orange Marine for the construction of two advanced cable laying and maintenance vessels.Additionally, CDPLC and Dredging Corporation of India signed a memorandum of understanding on April 7, establishing CDPLC as DCI’s preferred dry docking, repair and maintenance partner. The MoU was signed in the presence of Indian High Commissioner to Sri Lanka Santosh Jha.The statement further said that MDL is also actively discussing with Shipping Corporation of India (SCI) to hand over ship repair and modification work to CDPLC to further strengthen the India-Sri Lanka maritime services corridor.
