Colombo Dockyard returns to profit as shiprepair activity strengthens

Colombo Dockyard has returned to profitability following a sharp improvement in ship repair performance, reporting profit after tax of LKR 80.2 million (EUR 0.21 million) for the second quarter of 2026, compared with a loss of LKR 813.4 million (EUR 2.13 million) in the corresponding period last year.
The turnaround comes as the Sri Lankan shipbuilder and ship repair provider continues to reshape its operations following the acquisition of a controlling 51%-stake by India's Mazagon Dock Shipbuilders.

Although group revenue declined 6.8% year on year to LKR 5.84 billion (EUR 15.28 million), improved cost control significantly boosted profitability. Cost of sales fell by 21.8% to LKR 4.63 billion (EUR 12.12 million), helping gross profit more than triple to LKR 1.21 billion (EUR 3.17 million).

Ship repair was the main contributor to the recovery. Revenue from the division increased 48.4% to LKR 3.95 billion (EUR 10.34 million), while gross profit rose to LKR 1.46 billion (EUR 3.82 million) from LKR 727 million (EUR 1.90 million) a year earlier. The improvement highlights the importance of Colombo Dockyard's position on one of the Indian Ocean's busiest shipping routes and its role in Sri Lanka's maritime services sector.

Shipbuilding operations remained under pressure, although losses narrowed considerably. The segment recorded a gross loss of LKR 378.8 million (EUR 0.99 million), compared with LKR 899.6 million (EUR 2.35 million) in the previous year. Meanwhile, lower borrowing costs helped reduce net finance expenses by 63.8%.

Chief Executive Thimira S. Godakumbura said the company would continue to focus on competitiveness, execution and financial sustainability while strengthening cooperation with Mazagon Dock Shipbuilders. Cash reserves increased to LKR 8.48 billion (EUR 22.20 million), while equity rose to LKR 15.59 billion (EUR 40.81 million), providing a stronger platform for future investment and growth.