India eyes ‘strategic foothold’ in Indo-Pacific with stake in Colombo Dockyard

State-run Mazagon Dock’s takeover of Sri Lanka’s largest shipbuilder signals that India is looking beyond countering China, analysts say

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Trucks drive past shipping containers at the main port in Colombo, Sri Lanka. Colombo Dockyard is located within the port. Photo: Reuters

Published: 6:30pm, 3 Jul 2025

India has signalled its growing maritime and shipbuilding ambitions in the Indo-Pacific with the country’s biggest warship builder, state-run Mazagon Dock, set to acquire a controlling stake in Sri Lanka’s Colombo Dockyard.

Mazagon Dock Shipbuilders said last week it would buy a 51 per cent stake in Colombo Dockyard for US$52.96 million. The deal is expected to be completed within the next six months.

In a statement on social media on Friday, Mazagon Docks highlighted that the agreement would mark the company’s first international acquisition and give it a “strategic foothold in the Indian Ocean region – a key maritime corridor”.

“With this, [Mazagon Docks] begins its transformation from a domestic shipbuilder to a regional maritime player with global ambition,” it added.

A security man stands guard as an Indian navy submarine is set afloat during its launch at the Mazagon Dock Shipbuilders in Mumbai. Photo: AP

Colombo Dockyard is the Sri Lankan government’s leading shipbuilder and ship repair firm. It services more than 200 ships yearly and can handle vessels up to 125,000 deadweight tonnage. It also has clients and government contracts across Asia and Africa.

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