State-run Mazagon Dock Shipbuilders Limited (MDL) has announced its first international acquisition, signing a deal worth up to $52.96 million to acquire a controlling stake in Sri Lanka’s Colombo Dockyard PLC (CDPLC). The strategic move is seen as a major step in expanding India’s maritime influence in the Indian Ocean Region amid China’s growing footprint.MDL, India’s leading defence public sector shipyard, said the acquisition will be executed through a mix of primary capital infusion and secondary share purchase, including buying shares from Onomichi Dockyard Co Ltd, the current majority stakeholder, PTI reported.“Located in the Port of Colombo, Colombo Dockyard PLC (CDPLC) gives MDL a strategic foothold in the Indian Ocean Region—a key maritime corridor,” MDL said in a statement.Officials said the deal would mark a transformational shift in MDL’s role from a domestic shipbuilder to a regional maritime player with global ambitions.The shipyard plans to channel a steady pipeline of orders for shipbuilding, repairs, and refits to CDPLC from Indian and international clients. “As such, there is a continuous revenue stream of ship repairs from the Indian sub-continent, and MDL acquiring controlling stakes would only further this trend,” said one official, quoted PTI.Colombo Dockyard, listed on the Colombo Stock Exchange, is Sri Lanka’s largest shipyard and serves clients across Asia, the Middle East, and Africa. The shipyard is currently under financial stress, but MDL expects to drive a turnaround using its stronger financial position and technical capabilities.Officials added that potential new orders being explored by MDL could be redirected to Colombo, ensuring integrated industrial output and enhanced supply chain connectivity. Design and engineering synergies between the two firms could also be tapped for mutual benefit.“This investment marks a win-win scenario,” said an official, adding that “resources at both shipyards can be shared, including detailed design capabilities, for projects at MDL as well as CDPLC.”The development comes amid India’s growing concern over China’s strategic leverage in Sri Lanka. The Colombo port has been a focal point of Chinese investments in recent years, prompting New Delhi to strengthen its presence through commercial and diplomatic engagements.The deal was officially approved by the MDL board and follows the government’s broader push to increase India’s strategic economic engagement with key neighbours in the Indian Ocean Region.