Last week, the Indian Defence Ministry’s Mazagaon Dock Shipbuilders Ltd. (MDSL) acquired the Colombo Dockyard PLC (CDPLC), strengthening India’s position in Sri Lanka’s marine sector in comparison to rival China.

Since 2010, China and India, two regional giants, have shown interested in Colombo port due to its strategic location in the Indian Ocean. Additionally, the competition has taken many different shapes.

The ability of the CDPLC to handle vessels up to 125,000 dwt made it a significant asset, according to Lloyd’s List. Every year, it has serviced over 200 ships. According to Lloyd’s List, the yard delivered two 5,000 dwt bulk carriers just last year and was given contracts for four more.

The Sunday Morning claims that the Japanese company’s appeals for government action to lessen the effects of debt servicing were not met. But after realising how serious the situation was, the government started looking for a suitable partner by the end of 2024 to continue CDPLC.

Mazagaon Dock Shipbuilders is the next step.

Mazagaon Dock Shipbuilders Ltd. (MDSL), which is owned by the Indian Defence Ministry, declared last week that it had purchased 51% of Onomichi’s shares in CDPCL. The transaction is valued at US$52.96 million, according to Lloyd’s List.
The credentials of the MDSL are remarkable. Since 1960, it has constructed 805 vessels, including 8 submarines and 30 warships, ranging from sophisticated destroyers to missile boats.

Geopolitical Dimension

Before China could take advantage of the opportunity presented by Onomichi’s departure, India, which was already in the running to take control of Colombo port, acted quickly.