Colombo Dockyard, Sri Lanka’s largest shipbuilder, successfully returned to profitability in the second quarter of 2026—posting an operating profit of $240,000—following several years of restructuring.
The company’s return to the black is the result of sustained efforts. While losses continued to narrow throughout 2025, and the shipyard generated $22.7 million in revenue in the first quarter of 2026 (a 7.6% year-on-year increase), it still recorded a loss of $1.2 million for that quarter due to high administrative and financial expenses.
Overall, during the 15-month period from January 1, 2025, to March 31, 2026, Colombo Dockyard achieved a cumulative revenue of $108 million and recorded a cumulative loss of $8.7 million.
This extended 15-month reporting period arose because Colombo Dockyard shifted its financial year-end from December to the following March. This change was part of a major restructuring plan implemented over the past year, during which the shipyard also completed a rights issue, raising over $38 million in new equity capital.
Furthermore, Indian shipbuilding interests have played a role in the restructuring process of Colombo Dockyard. In April 2026, the Indian state-owned shipbuilder Mazagon Dock Shipbuilders (MDL) announced the completion of its acquisition of a 51% stake in Colombo Dockyard, bringing the company into its subsidiary network—marking the first time the Indian shipbuilder has acquired an equity stake in an overseas shipyard.
Japan’s Onomichi Dockyard was previously the major shareholder of Colombo Dockyard; following the completion of the acquisition, the board has been restructured. Jagmohan, Chairman and Managing Director of MDL Shipyard, assumed the role of Non-Executive Chairman of Colombo Dockyard effective April 7, 2026, while Thimira S. Godakumbura retained his position as Managing Director and CEO.
Driven by the change in equity ownership and internal restructuring, Colombo Dockyard recorded revenue of $11 million in the second quarter of 2026, a year-on-year increase of 48.4%. The company achieved an operating profit of $240,000, marking a turnaround from the $2.4 million loss reported in the same period last year. The shipyard stated that performance for the quarter was primarily underpinned by its ship repair business; although the shipbuilding division remained loss-making, it showed signs of recovery, with losses narrowing from $2.6 million to $1.1 million.
In tandem with the improvement in operating performance, orders for new vessels at Colombo Dockyard are gradually rebounding.
In late 2025, French shipowner Orange Marine ordered two new cable-laying vessels from Colombo Dockyard—reportedly the largest shipbuilding contract the yard has ever signed—with deliveries expected in 2028 and 2029; in July 2026, UK shipowner Global Marine placed an order with the yard for a new cable maintenance vessel, scheduled for delivery in the fourth quarter of 2029.
Established in 1974, Colombo Dockyard is Sri Lanka’s largest and only shipyard capable of providing comprehensive shipbuilding and repair services. It operates four dry docks—the largest measuring 263 meters in length and 44 meters in width—and is capable of constructing various vessels of up to 125,000 deadweight tons (DWT), such as oil tankers, bulk carriers, and drilling rigs. The facility is equipped with a 1,000-meter repair berth, gantry cranes, CNC cutting equipment, and painting workshops, among other shipbuilding and repair infrastructure.