Colombo shipyard seeks new investors after Onomichi exits
Japanese shipyard is the major shareholder of Colombo Dockyard, which will sell its shares to ‘any strategic investor’ willing to commit to the business
CDL made a significant lost in 2023 as it battled against Sri Lanka’s precarious financial position, but the board of directors said it is confident it can steer the shipyard out of troubled waters
COLOMBO Dockyard (CDL) is looking for new investors, after Japan-based majority stakeholder Onomichi Dockyard pulled out of its management agreement.
The Japanese shipyard informed CDL of its decision and its three nominees to the Sri Lankan yard’s board resigned from their positions.
Onomichi has assured the CDL board t is prepared to exit its investment in the company by “disposal of its shares to any strategic investor who would be willing to make a commitment towards the company”.
CDL suffered a disastrous year in terms of profit in 2023, registering a loss of ₨11.1bn ($38.2m). This result was attributed to poor performance in the shipbuilding sector but also the economic crisis felt across Sri Lanka in 2023, which saw exchange rates tumble and inflation skyrocket.
Nevertheless, the board said it was confident it could steer CDL back to profitability, thanks to its strategic location. Preliminary discussions with potential investors are already underway, CDL said.
The yard is capable of handling vessels up to 125,000 dwt and services more than 200 ships annually. Last year the yard delivered two 5,000 dwt bulk carriers and was awarded contracts for four more.
