India’s Mazagon Dock to buy Colombo Dockyard control for US$52.9mn

• CNL Reporter
• June 28, 2025
• News
• India
• 0 Comments

India’s Mazagaon Dock Shipbuilders Limited has decided to buy a 51 percent controlling stake in Sri Lanka’s Colombo Dockyard for 52.96 million US dollars, a media report said.

The Board of MDL had given the approval for the deal, India’s Financial Express newspaper said in an online report, quoting a stock exchange filing.

In addition to purchasing shares from Onomichi “t will also purchase securities of the Sri Lankan company through primary subscription,” the statement said.

Japan’s Onomichi Dockyard which held the shares decided to exit the company, which has made losses after the Coronavirus crises and some low margin shipbuilding contracts and the firm is in need of cash.

Mazagon had signed ‘definitive agreements’ with Onomichi and will spend up to 22.96 million US dollars or 452 crore Indian rupees, the report said.