Big tension for China, India signs this big deal with Sri Lanka, aim is to..., it will ensure...

India's Mazagon Dock Shipbuilders Limited (MDL), a state-owned company, is set to take over Sri Lanka’s Colombo Dockyard PLC in a $52.96 million deal. This marks MDL’s first international acquisition and a significant step in expanding India’s presence in the Indian Ocean, especially at a time when China is trying to grow its influence in the region. The acquisition involves both buying shares and investing fresh capital. Japan’s Onomichi Dockyard Co Ltd, which earlier owned 51% of Colombo Dockyard, has decided to exit the business. As the dockyard faces financial trouble, India has stepped in to fill the strategic gap.

Colombo Dockyard is Sri Lanka’s largest shipbuilding facility. It is located near some of the busiest shipping routes in the world, making it highly important for regional trade and security. With MDL now taking control, India hopes to bring the dockyard back to life and strengthen its shipbuilding capabilities in South Asia.

MDL plans to shift part of its ship repair and construction work to Colombo Dockyard. This will not only ensure a steady stream of income for the Sri Lankan facility but also create technical and industrial partnerships between the two yards. MDL Chairman and Managing Director, Capt. Jagmohan, said this move will help MDL become a major player in the region and a global shipbuilding force.

According to reports, Sri Lanka had earlier asked Japan for help in rescuing the dockyard, but when that didn’t work out, India was approached to find a solution. With strong technical skills and financial backing, MDL was selected as the ideal partner.

Once all legal approvals are completed, Colombo Dockyard PLC will become a full subsidiary of MDL. This deal gives India more than just a shipyard—it gives the country a powerful position in a region where maritime power plays a key role in geopolitical strategies.