Mazagon Dock Shipbuilders Ltd (MDSL) will acquire a majority stake in Colombo Dockyard, Sri Lanka’s top shipbuilder, marking a key move in India’s regional maritime strategy
The deal follows improved India–Sri Lanka ties under President Dissanayake and positions India as a counterweight to China’s dominance in Sri Lanka’s ports
Colombo Dockyard’s location near a major transshipment hub offers MDSL a gateway to expand beyond its core defence orders
The acquisition revives a struggling shipyard with $300 million in orders, while giving it access to Indian supply chains and naval expertise
While many Indian PSUs struggle abroad, MDSL’s efficiency and strong delivery record will now be tested in a global setting
If successful, this deal could be a blueprint for India’s state-owned firms to lead strategic, global infrastructure plays in key geographies