Colombo Dockyard, established in 1974 and located at the Port of Colombo, has been a key player in the region’s shipbuilding and maintenance industry. The facility was previously under the control of Japan’s Onomichi Dockyard, which had been seeking new investors for its stake in the company.
The acquisition is expected to be finalized within four to six months, subject to necessary regulatory clearances from relevant authorities in both India and Sri Lanka. Once completed, MDL will take over majority control, bringing the shipyard under Indian management.
This development follows other recent efforts by Indian entities to strengthen their presence in Sri Lanka’s maritime infrastructure. Earlier this year, Adani Group, India’s largest port operator, began managing a container terminal at the Port of Colombo, further expanding Indian engagement in regional logistics.
Colombo Dockyard is strategically positioned along key international shipping routes and plays a central role in the Indian Ocean’s maritime operations. The facility offers ship repair, newbuilding, offshore engineering, and conversion services. It has served both domestic and international clients and contributes significantly to Sri Lanka’s shipbuilding sector.
For MDL, the acquisition is part of a broader strategy to extend its footprint beyond India and enhance its commercial capabilities in ship repair and construction. Known for building warships and submarines for the Indian Navy, MDL brings technical expertise and industry experience that could support Colombo Dockyard’s future development and expansion.
This transaction is also expected to bring potential opportunities for technological collaboration, workforce training, and increased operational capacity at the Sri Lankan facility. It may enhance the overall competitiveness of Colombo Dockyard in the regional and global maritime market.
The agreement reflects a growing trend of regional cooperation in infrastructure development and maritime logistics, with increased interest from various nations in the Indian Ocean region. The move by MDL aligns with India’s broader approach to strengthening economic and maritime ties with neighboring countries through investment and collaboration in key sectors.
Pending final approvals, the transition is expected to proceed smoothly, and both parties have expressed confidence in the strategic value of the partnership. The acquisition positions MDL to take a more active role in international shipbuilding and service operations.
