India’s Strategic Move in Sri Lanka: Mazagon Dock’s $53 Million Deal Set to Rattle China
India is making a significant maritime move that’s likely to unsettle China. Mazagon Dock Shipbuilders Limited (MDL), a key Indian defence shipyard known for building submarines and warships, is set to acquire a decisive stake in Sri Lanka’s largest shipyard firm, Colombo Dockyard PLC (CDPLC). The deal, worth approximately $53 million, marks the first time an Indian shipbuilding giant will take over a foreign company. This strategic acquisition is expected to strengthen India’s footprint in the Indian Ocean Region (IOR) and counter China’s growing influence in Sri Lanka.
A Blow to China’s Strategic Interests
China has been actively seeking to expand its naval presence in the Indian Ocean and deepen its ties with Sri Lanka. Its search for maritime footholds in the region is seen as a security challenge for India. With this new deal, India is positioning itself to push back against China’s encroachment and reinforce its own strategic presence in the region.
What Is MDL’s Plan in Sri Lanka?
MDL will acquire its stake through a mix of fresh share issues and purchasing shares from Onomichi Dockyard Company Limited, currently the largest shareholder of CDPLC. Once all regulatory approvals are in place, CDPLC will become a subsidiary of MDL.
MDL Chairman’s Vision
Captain Jagmohan, Chairman and Managing Director of MDL, told The Times of India that this acquisition acts as a “gateway” for MDL to first establish regional dominance and then emerge as a global shipbuilding force. With CDPLC’s strategic location at the Colombo port and its established capabilities, MDL is poised to become a major player in South Asia.
Why This Deal Matters
CDPLC brings over five decades of shipbuilding and repair experience. It has built various vessels for countries like Japan, Norway, France, the UAE, India, and several African nations. Currently, CDPLC has an order book worth more than $300 million, including cable-laying vessels, multipurpose ships, and fleet support ships.
MDL officials believe the partnership will benefit CDPLC through advanced technology transfer, improved access to Indian supply chains, and potential entry into the Indian market—thereby boosting its financial and operational growth.
