News & market updates

Mazagon Dock Shipbuilders will acquire a 51% controlling stake in Colombo Dockyard for US$52.96mn, including a primary subscription, with Japan’s Onomichi exiting after losses.

Colombo Dockyard Plc delivered two underwater restaurant structures to the Maldives (a 12-passenger restaurant towed Mar 28 and an 'Underwater Gallery' installed May 16, 2025) and says it is seeking further Maldives projects. The company is also seeking a strategic investor after controlling shareholder Onomichi Dockyard indicated it wants to exit.

Colombo Dockyard Plc said it is in talks with a potential strategic investor after main shareholder Onomichi Dockyard decided to exit, and expects the investor to infuse capital to stabilise the company; it is also negotiating with creditors over debt servicing.

Colombo Dockyard said its board has recommended a buyer for the 51% stake held by Japan’s Onomichi, but any sale is at Onomichi’s discretion and depends on the selected party committing additional capital and providing management and technical input.

Sri Lanka's ASPI fell 1.33% to 16,345.30 as turnover was Rs2.3bn, with banks weighing on the market. Major decliners included NDB, Seylan, HNB, Sampath and DFCC while Nations Trust, Colombo Dockyard and Ceylon Tobacco gained; net foreign outflow was Rs64m.

Colombo Dockyard Plc said Japanese majority shareholder Onomichi Dockyard is exiting and its nominee directors have resigned, leaving the company seeking a strategic investor and bank credit lines after financial difficulties and a currency crisis.

Colombo Dockyard Plc said it is actively seeking strategic investors after reporting losses and receiving an auditors' going-concern caution following failed vessel deliveries and cost rises during the currency crisis. The company said ship repair continues to generate cash, construction of four hybrid bulk carriers is ongoing, and remedial actions must be completed within 12 months of any CSE watchlist transfer to avoid suspension.

Colombo Stock Exchange closed higher as the ASPI hit an all-time high, up 1.29% to 13,511 and the S&P SL20 rose 1.90% to 4,016 on turnover of Rs5.2bn. Banks and bluechips led gains (Commercial Bank, Sampath, John Keells, DFCC, NDB, Lion Brewery) amid bullish flows and nearing debt restructuring.

Sri Lanka plans to convert parts of 21 fishery harbours into mini marinas to expand its blue economy and leisure/yacht sector. Local boatbuilders, including Colombo Dockyard, are noted as existing capacity that could benefit from the push and related marina/port projects.

Takashi Nakabe has resigned as chairman of Colombo Dockyard effective Nov 25 and will remain on the board as a non-executive director, the company said. Nakabe was appointed chairman in July and is president of Japan's Onomichi Dockyard; Colombo Dockyard shares were trading at 52.40.

The Chamber of Marine Industries congratulated the NPP and urged the government to fast-track a marine industry regulatory framework to help unlock $1bn in FDI and $1bn in exports by 2029. It highlighted Port City offshore status, harbour upgrades, 'Grow Boating' and named Colombo Dockyard as a flagship contributor.

Voyage Sri Lanka 2024, a marine and offshore services conference, will be held on 26 November 2024 at Hotel Kingsbury Colombo and registration is open. The event will spotlight the blue economy and lists partners/sponsors including Colombo Dockyard and Hayleys Advantis.

Colombo Stock Exchange closed lower on Oct 3: All Share Index fell 0.04% to 11,929 and S&P SL20 dropped 0.75% to 3,483, with turnover of LKR 1.3 billion and a net foreign outflow of LKR 17 million.

Hambantota International Port hosted 23 vessels for repairs and layups from Jan–Aug 2024, a 53% rise from 15 in the same period in 2023. Colombo Dockyard carried out a turret pipeline installation on the FPSO Svetah Venetia during its seven-month layup.

Colombo Dockyard (DOCK.N0000) laid the foundation for a full-fledged engineering workshop at Hambantota International Port, to be built under a contract with HIPG and delivered by its subsidiary Dockyard General Engineering Services (DGES). The facility will extend Colombo Dockyard's afloat repair services to the southern port and speed up repairs for vessels calling there.