India-Sri Lanka defence ties deepen with Colombo Dockyard acquisition

NEW DELHI : One of the leading shipyards in the Indian Ocean region, Colombo Dockyard continues to reinforce its long-standing relationships with clients across the Indian shipping and maritime sector. In the first half of 2025, Colombo Dockyard has serviced a range of Indian vessels, including the Shipping Corporation of India’s Swarna Pushp, which called at the yard for drydock repairs, continuing the long-term business relationship between the two organisations.

With the acquisition of the Colombo Dockyard PLC (CDPLC) by the Indian Defence Ministry’s Mazagaon Dock Shipbuilders Ltd., (MDSL) recently, India’s position in Sri Lanka’s maritime domain vis-à-vis rival China, has been strengthened. 

Given Colombo port’s strategic location in the Indian Ocean, it has been eyed by regional powers India and China since 2010. And the competition has manifested itself in various forms.      

The Colombo Dockyard PLC(CDPLC) had been a joint venture of the Sri Lankan government and the Japanese Onomichi Dockyard Company Ltd., (Onomichi for short) since 1974. The CDPLC had been a success all along until the Sri Lankan financial crisis in 2022, when the country defaulted on its loans and its economy tanked. 

According to Lloyd’s List, the CDPLC had been a major asset as it was capable of handling vessels up to 125,000 dwt. It has serviced more than 200 ships annually. Even last year, the yard delivered two 5,000 dwt bulk carriers and was awarded contracts for four more, Lloyd’s List said. 

But 2023 proved to be a disastrous year for CDPLC. It registered a loss of Sri Lank ₨.11.1bn (U$ 38.2m). This was attributed to “poor performance in the shipbuilding sector and the economic crisis which saw exchange rates tumble and inflation skyrocket.” 

Additionally, Chennai-based Sanmar Shipping has entrusted Sanmar Sneha for drydocking and Sanmar Sloka for alongside repairs at Colombo, while Seven Islands Shipping, a Mumbai-based liquid bulk and gas transportation company, docked the tankers Fairway and Patriot for repairs in the first quarter of this year.

Other Indian clients over the first half of the year have included Executive Ship, whose Chola Melody completed drydock repairs recently; TCI Seaways, which chose Colombo Dockyard for steel repairs on TCI Arjun; Castle Ship Management, which recently completed a third drydocking of Hari Leela since 2018; and Arja Tankers and Five Star Shipping, which docked the Dawn Madurai and Maha Jacqueline respectively.

The links with the Indian shipping sector seem likely to deepen further, following the recent announcement that Mazagon Dock Shipbuilders plan to acquire a 51% stake in the yard from Japan’s Onomichi Dockyard Co. The Indian shipyard indicated that the move aims to strengthen its regional presence in the shiprepair and marine engine veering segment