December 12, Colombo (LNW): Colombo Dockyard PLC (CDL) has gained a vital breathing space after regulators granted a six-month extension that allows its shares to continue trading while the company prepares for a major ownership transition involving India’s Mazagon Dock Shipbuilders Limited.
The shipyard confirmed on Wednesday that the Securities and Exchange Commission of Sri Lanka (SEC) had postponed a trading suspension—initially expected to take effect on December 11, 2025—until June, 11, 2026.
The threatened suspension stemmed from the company’s prolonged presence on the Watch List, a consequence of auditors flagging concerns over CDL’s long-term financial viability.
In a significant parallel development, the SEC has also approved the transfer of CDL’s controlling interest. Onomichi Dockyard Company Limited, which has held the dominant stake for decades, has now been authorised to sell its entire shareholding to Mazagon.
The handover is to be completed after Mazagon carries out a Mandatory Offer following the conclusion of CDL’s pending Rights Issue.
CDL clarified that the regulator’s green light comes with firm conditions: Mazagon must successfully participate in the Rights Issue and proceed with the mandatory offer in line with Sri Lanka’s Takeovers and Mergers Code.
The dockyard has endured a bruising few years. Onomichi’s withdrawal from management in 2024 came after the pandemic and domestic economic turmoil choked the company’s access to financing, undermining its efforts to compete for international contracts.
After reviewing several potential investors, CDL selected Mazagon—one of India’s leading state-owned shipbuilders—to inject new capital and technical capacity aimed at revitalising the shipyard.
Despite these upheavals, CDL has continued to deliver on key projects. The firm recently handed over the third vessel in a hybrid bulk-carrier series to a Norwegian client, completing the job ahead of schedule on 27 November 2025. Work on the fourth vessel is reportedly advancing smoothly, with a launch anticipated before the end of the month.
In addition, CDL has inked agreements to design and construct two cable-laying and repair ships for Orange Marine, though these contracts depend on meeting several financial requirements. The company maintains that, with Mazagon’s backing, it is poised to reclaim stability and pursue larger international orders in the coming years.
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