India’s MDL Acquires Majority Stake in Sri Lanka’s Colombo Dockyard to Counter China’s Influence

State-owned Mazagon Dock Shipbuilders Limited (MDL) of India has struck its first overseas deal by acquiring a controlling stake in Colombo Dockyard PLC (CDPLC) for up to $52.96 million (Rs 442 crore), bolstering its global footprint and regional naval readiness.

Located within the Port of Colombo, CDPLC is Sri Lanka’s largest shipbuilder and repair facility, equipped with four dry docks and advanced marine engineering capabilities dating back to 1974.

The acquisition includes both primary capital infusion and purchasing shares from Japan’s Onomichi Dockyard, aiming to secure 51% ownership.

This strategic move aligns with India’s Maritime Amrit Kaal Vision 2047, empowering MDL to transition from domestic-only operations to a regional maritime player. The deal gives India a robust base in Sri Lanka—an essential corridor in the Indian Ocean Region—amid rising geopolitical activity.

India’s growing concerns over China’s naval ties in Sri Lanka, including port investments and surveillance ship visits, make this acquisition a significant balancing action. Having a strategic asset in Colombo allows India to strengthen maritime security cooperation with Sri Lanka and counter regional influence.

For Colombia Dockyard, the deal injects much-needed financial stability and expansion potential, with a strong existing order pipeline (~$300 million) and certifications from global agencies like DNV and Lloyd's.

The agreement is still subject to regulatory approvals, with a projected closing within 4–6 months.MDL Colombo Dockyard acquisition, Mazagon Dock Sri Lanka, Colombo Dockyard deal $53 million, India Sri Lanka maritime cooperation, counter China Indian Ocean, MDL first international deal, Colombo Dockyard strategic investment