Anchor at Colombo port, eyes on the Indian Ocean

On June 27, 2025, Mazagaon Dock Shipbuilders, an Indian public sector company under the ministry of defence, signed a tripartite agreement with which it would be acquiring a majority stake (51%) in Colombo Dockyard PLC (CDPLC).

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The $53-million deal gives India strategic control over the only dry dock in Sri Lanka, and entrenches its position in the strategic port.

For more than a decade, India was concerned about China’s docking of submarines and spy ships, and that country’s expanding presence in Sri Lanka's critical infrastructure. Since 2014, India has pushed for connectivity in the region with its Neighbourhood First policy. In the case of Sri Lanka, the need for connectivity and presence in the port sector grew dire after the Hambantota Port was leased to China for 99 years in 2017. The crisis in Sri Lanka, offered an opportunity for India to expand its presence in the country that needed foreign direct investments and external assistance. India offered an assistance of $4.5 billion and is helping Sri Lanka with port and energy sector connectivity through grants and investments.