Latest news with #ColomboDockyard
Business Recorder
23-07-2025
- Business
- Business Recorder
Sri Lanka shares drift higher after local rates held as expected
Sri Lankan shares closed higher on Wednesday, gaining for the fourth straight session, after the country's central bank kept policy rates unchanged - as widely expected. The CSE All Share index settled up 0.8% at 19,243.08, aided by gains in healthcare and information technology stocks. The Central Bank of Sri Lanka held its benchmark rate steady - as widely expected - at 7.75% on Wednesday. Industrial Asphalts (Ceylon) and Colombo Dockyard were the top two percentage gainers on the CSE All Share, rising 33.33% and 24.85%, respectively. Sri Lanka shares end higher ahead of rate decision day Trading volume on the CSE All Share index rose to 235.3 million shares from 203.8 million in the previous session. The equity market's turnover rose to 6.23 billion Sri Lankan rupees ($20.7 million) from 5.92 billion rupees in the previous session, according to exchange data. Foreign investors were net sellers, offloading stocks worth 331.3 million rupees, while domestic investors were net buyers, purchasing shares worth 6 billion rupees, the data showed.
Business Recorder
08-07-2025
- Business
- Business Recorder
Sri Lanka shares decline as healthcare, materials drag
COLOMBO: Sri Lankan shares closed lower on Monday, weighed down by losses in material and healthcare stocks. The CSE All Share index lost roughly 0.6% to 18,042.2. Colombo Dockyard and Mercantile Shipping Company were the top two losers on the CSE All Share, falling 13% and 8%, respectively. Trading volume on the CSE All Share index fell to 153.8 million shares from 156.1 million in the previous session. The equity market's turnover slumped to 2.42 billion Sri Lankan rupees ($8.04 million) from 6.76 billion rupees in the previous session, according to exchange data. Foreign investors were net buyers, purchasing stocks worth 89.1 million rupees, while domestic investors were net sellers, offloading shares worth 2.40 billion rupees, the data showed.
Hindustan Times
04-07-2025
- Business
- Hindustan Times
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). 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. This aid and push for connectivity, together with India's economic growth, has given confidence to Sri Lanka in seeking India's assistance and investments. As a result, when the major stakeholder of Colombo Dockyard – Onomichi Dockyard Company – was operating under loss, the CPDLC sought help from the government of Japan and Sri Lanka. In return, Colombo requested India to increase its investments in the country. This was expected to increase the inflow of foreign money, avert further borrowing and debts, and at the same time help domestic stakeholders (who held 49% of stake in CDPLC) stay afloat. Similarly, the push for connectivity helped India further its presence in the region and ensure that its security and interests are not compromised. For instance, in 2011, China began investing in the southern terminal of Colombo Port. In return, a build-operate-and-transfer agreement was signed, effectively leasing out the terminal to China for 35 years. Furthermore, China also invested in the Colombo Port City, a special economic zone, adjacent to the southern terminal, and secured a lease for 99 years. China's increasing presence in Colombo port, and the fact that over 45% of transhipped cargoes of India are handled at the same port, motivated Delhi to increase its presence. In 2018, India and Japan were involved in developing the east container terminal, which was later cancelled unilaterally by the Sri Lankan government. When India expressed its concerns, Sri Lanka sought a compromise by offering the west container terminal of Colombo Port to Adani ports. With a 51% stake, the firm now enjoys a lease of 35 years in the terminal. The acquisition of Colombo Dockyard, Sri Lanka's leading shipbuilder and repair hub, further entrenches Indian position in Sri Lanka's port sector and the Indian Ocean Region. India's commitment, interest to invest, and ability to deliver during Sri Lanka's economic crisis incentivised Colombo to shed its reservations and suspicion. On its part, China too will continue to woo Sri Lanka and other countries in the region by leveraging its economic might. India will have to continue tapping regional markets, bridge infrastructure gaps, and deliver on its promises by leveraging its economy and capital. That's the only way to secure its interests in the region. Aditya Gowdara Shivamurthy is associate fellow, Neighbourhood Studies, ORF. The views expressed are personal.
Business Recorder
03-07-2025
- Business
- Business Recorder
Utilities, communication services stocks drag Sri Lankan shares
Sri Lankan shares slipped on Thursday as losses in utilities and communication services stocks weighed. The CSE All-Share index settled 0.23% lower at 18,100.92 points. Colombo Dockyard and UB Finance were top percentage losers on the CSE All-Share index, down 18.1% and 16.7%, respectively. Trading volume on the index dipped to 198.2 million shares from 247.7 million in the previous session. Sri Lankan shares end higher on broad-based gains The equity market's turnover slumped to 5.65 billion Sri Lankan rupees (about $19 million) from 7.81 billion rupees in the previous session, according to exchange data. Foreign investors were net sellers, offloading stocks worth 228.5 million rupees, while domestic investors were net buyers, purchasing shares worth 5.47 billion rupees, the data showed.
South China Morning Post
03-07-2025
- Business
- South China Morning Post
India eyes ‘strategic foothold' in Indo-Pacific with stake in Colombo Dockyard
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.
