INDIAN DEFENCE MINISTRY COMPANY SET TO ANCHOR STRATEGIC INFLUENCE IN COLOMBO PORT

What kind of geopolitical connotations will it entail for Sri Lanka?

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India is poised to secure another strategic investment in Sri Lanka with plans by its public sector company under the Indian Defence Ministry, Mazagaon Dock Shipbuilders (MDL)' for acquiring a majority stake in Colombo Dockyard PLC (CDPLC).

As reported by the Indian media, the company said that the board of directors has "approved the proposal for acquisition of a controlling and substantial stake of Colombo Dockyard PLC by way of an investment not exceeding $ 52.96 million.

Mazagon Dock, along with Colombo Dockyard and Japan's Onomichi Dockyard, signed a tripartite agreement on June 27 under which MDL will acquire the Japanese company's controlling stake in Colombo Dockyard.

The Mumbai-headquartered Mazagon Dock Shipbuilders is a public sector shipyard and is also known as the 'Shipyard of the Nation.' It specialises in the construction of warships, submarines, and commercial vessels.