State-run Mazagon Dock Shipbuilders Limited (MDL) has decided to acquire a controlling stake in Sri Lanka’s Colombo Dockyard PLC under a 52.96 million dollar deal. MDL’s decision marks its first international venture and is seen as a major milestone in the company’s transformation from a purely domestic shipbuilder into a regional maritime player with global aspirations.
In a statement, the MDL said, located in the Port of Colombo, Colombo Dockyard PLC gives MDL a strategic foothold in the Indian Ocean Region– a key maritime corridor. Officials said, MDL’s acquiring controlling stakes in Colombo Dockyard will significantly change the shipbuilding and ship repair landscape in the region.
The move comes amid concerns in New Delhi over China’s persistent attempts to expand its strategic influence in the island nation. Colombo Dockyard PLC, listed on the Colombo Stock Exchange, is the flagship of Sri Lanka’s maritime industry and serves a wide spectrum of commercial and governmental clients across Asia, the Middle East, and Africa. It is Sri Lanka’s largest shipyard.
