Sat Jun 28 13:55:25 UTC 2025: Here’s a summary and a news article based on the provided text:

**Summary:**

Indian government-owned Mazagon Dock Shipbuilders Limited (MDL) is set to acquire a 51% controlling stake in Sri Lanka’s Colombo Dockyard PLC (CDPLC) for $52.96 million. This marks MDL’s first international acquisition and provides it with a strategic foothold in the Indian Ocean region. CDPLC, struggling with debt, had requested Indian investment after the exit of its majority shareholder, Onomichi Dockyard. The deal is viewed as beneficial for both India and Sri Lanka and comes amid concerns over growing Chinese influence in the region. This follows Adani Ports’ recent commencement of operations at the Colombo West International Terminal, further solidifying Indian presence in the Colombo Port.

**News Article:**

**Indian Firm Acquires Controlling Stake in Sri Lanka’s Colombo Dockyard Amid Strategic Concerns**

**Colombo, Sri Lanka – June 28, 2025** – Mazagon Dock Shipbuilders Limited (MDL), an Indian government-owned company, announced today that it will acquire a 51% controlling stake in Colombo Dockyard PLC (CDPLC), Sri Lanka’s largest shipyard, in a deal valued at $52.96 million. The acquisition marks MDL’s first foray into the international market and is expected to be completed within six months.

The move provides MDL with a strategically important foothold in the Indian Ocean region, a key maritime corridor. “Located in the Port of Colombo, Colombo Dockyard PLC (CDPLC) gives MDL a strategic foothold in the Indian Ocean Region– a key maritime corridor,” the MDL said in a statement.

CDPLC, a well-known ship repair, shipbuilding, heavy engineering and offshore engineering facility, has been grappling with significant debt. Sources within the Sri Lankan government indicated that the acquisition is viewed as a positive development, following last year’s exit of Japanese company Onomichi Dockyard, the former majority shareholder. Colombo “urgently requested” New Delhi to “encourage Indian investors” to consider investing in Colombo Dockyard fearing the implications of a default.

The deal comes against a backdrop of growing geopolitical concerns in the region. India has previously raised concerns with Sri Lanka regarding the presence of Chinese research vessels in its ports, prompting a temporary moratorium on such visits.

This acquisition is not the first recent instance of Indian investment in the Colombo Port. In April, Adani Ports and Special Economic Zone Limited began operations at the Colombo West International Terminal (CWIT), a project developed in partnership with the Sri Lanka Ports Authority and John Keells Holdings. The terminal sits adjacent to the China-backed Colombo International Container Terminal (CICT), further emphasizing the competing influences within the crucial port.

The acquisition of CDPLC by MDL is expected to strengthen ties between India and Sri Lanka and contribute to the stability of the region.

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