Mazagon Dock acquires controlling stake in Colombo dockyard for $26.8 m, move will help counter China's control of Lanka port

NEW DELHI: Marking its first international acquisition, India’s premier defence shipyard Mazagon Dock Shipbuilders Ltd (MDL) has secured a 51% controlling stake in Colombo Dockyard PLC (CDPLC) for approximately Rs 249.5 crore ($26.8 million).

The Mumbai-based defence public sector undertaking announced in a statement on April 9 that the deal brings Sri Lanka's largest shipyard under its operational control, marking a transformative step in India's maritime expansion strategy. The deal allegedly involves acquiring shares from Japan's Onomichi Dockyard.

The acquisition is strategically important for India to counter China's growing maritime footprint in Sri Lanka. Beijing holds a 99-year lease for Hambantota Port and has regularly docked naval vessels in Colombo, raising alarms in New Delhi. MDL’s acquiring a controlling stake in CDPLC is also being seen as a geopolitical response to China’s increasing presence in the Indian Ocean Region (IOR). This ownership structure further strengthens the institutional and strategic links in the maritime industries of India and Sri Lanka, CDPLC said.

“The Board of CDPLC has been reconstituted with MDL nominees: Capt Jagmohan (Retd), CMD, MDL, appointed 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 MD & CEO of CDPLC; and Vish Govindasamy, deputy chairman, Sunshine Holdings PLC, as MDL Nominee Director,” an official statement said.

Capt Jagmohan (Retd), CMD, MDL and now chairman, CDPLC, said, “MDL's acquisition of CDPLC is a landmark moment — not just for our two organisations, but for maritime cooperation between India and Sri Lanka. The signing of the DCI MoU and our ongoing engagement with SCI are the first tangible deliverables of this partnership. We are confident of achieving 20% growth in CDPLC’s revenue and profits this financial year."

CDPLC, listed on Colombo Stock Exchange, is the flagship of Sri Lanka’s maritime industry and serves a wide spectrum of commercial and governmental clients across Asia, West Asia and Africa.
MDL’s strategic backing had enabled CDPLC to secure its largest shipbuilding contract in its 52-year history—a $150 million deal with Orange Marine for construction of two advanced cable laying and repair vessels.

Also, an MoU was signed on April 7 between CDPLC and Dredging Corporation of India Ltd establishing CDPLC as DCI’s preferred drydocking, repair and maintenance partner. The MoU was signed in the presence of India’s high commissioner to Sri Lanka, Santosh Jha.

MDL is also actively in discussions with the Shipping Corporation of India (SCI) to route vessel repair and refit work to CDPLC, further strengthening the India-Sri Lanka maritime service corridor, the statement further said.

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