India’s state-run Mazagon Dock Shipbuilders Limited (MDL) has announced its first international acquisition by securing a controlling 51% stake in Sri Lanka’s Colombo Dockyard for $52.96m. The Sri Lankan yard had previously been controlled by Japan’s Onomichi Dockyard which had been looking for investors to take over its stake.
Colombo Dockyard, established in 1974 and located in the port of Colombo, is Sri Lanka’s largest shipbuilding and repair facility.
The deal is expected to be completed within four to six months, subject to regulatory approvals.
After many years where Chinese state-run firms have led the way in investing in Sri Lankan maritime infrastructure, India is playing catch up. Earlier this year, Adani, India’s largest port operator, began operating a container terminal in Colombo.
