By Dr. Sarath Obeysekera

India’s declaration to become a leading naval and shipbuilding nation by 2047 under its Blue Economy vision marks a strategic shift in the Indian Ocean. With new subsidies, policies and ambitious targets, India is seeking to dominate global shipbuilding and maritime services. This development is not merely an Indian story; it is a regional one — and Sri Lanka stands to gain if it acts now.

Geography Is Sri Lanka’s Greatest Asset

Few countries are as strategically located as Sri Lanka. Sitting at the very centre of the East–West maritime corridor and only 22 nautical miles from India at its closest point, Sri Lanka is the natural hub for shipping, logistics and naval support. As India’s shipbuilding capacity expands, the demand for repair, maintenance and resupply facilities close to major shipping lanes will rise sharply. Colombo, Trincomalee and Hambantota are uniquely positioned to provide this.

Ports as Twin Engines of Growth

Colombo Dockyard has a long history of partnership with international investors. With India’s Mazagon Dock Shipbuilders Limited (MDL) and other firms looking outward, Sri Lanka could host satellite repair yards, dry docks and refitting facilities. Trincomalee, one of the world’s finest natural harbours, could emerge as a joint logistics and fleet base, while Galle could be developed into a specialised dry-dock hub for green fuels, LNG bunkering and submarine servicing. Such diversification would strengthen Sri Lanka’s economy and maritime security simultaneously.

Naval Logistics and Training Opportunities

India’s naval expansion also creates opportunities in logistics, training and supply chains. Sri Lanka can provide refuelling, replenishment and crew rest facilities to Indian and other friendly navies transiting the Indian Ocean. Joint training academies, simulation centres and vocational institutions could be established in collaboration with Indian partners to develop welders, marine engineers and naval architects. This would provide thousands of skilled jobs to Sri Lankan youth.

Synergy in the Blue Economy

Beyond shipbuilding, both countries share common interests in the Blue Economy: marine technology R&D, offshore energy, undersea cables, and sustainable fisheries. By aligning policies and regulations, Sri Lanka can attract Indian private investment into marine services and offshore manufacturing, positioning itself as a complementary hub to India’s industrial base.

Diplomacy and Strategic Balance

Deepening maritime cooperation with India does not mean sacrificing neutrality. On the contrary, it can enhance Sri Lanka’s security guarantees and bargaining power with other major powers, including China and the US. Multi-lateral funding and private investment are more likely to flow when a small country is seen as stable, strategically connected and open to partnerships.

The Road Ahead

To fully capitalise on India’s naval ambition, Sri Lanka should:

• Conclude Memoranda of Understanding (MoUs) with Indian shipyards for joint training, repair work and supply chain integration.
• Position Trincomalee as the flagship Indo-Lanka maritime project under a public–private partnership framework.
• Offer incentives for Indian private shipbuilders to set up satellite operations in Sri Lanka.
• Streamline security and regulatory frameworks to ensure confidence among international stakeholders.

Conclusion

India’s march toward becoming a naval and shipbuilding power by 2047 is a generational shift in the Indian Ocean. For Sri Lanka, this is not a threat but an opportunity. By acting strategically now, Colombo can turn its geographical advantage into sustainable economic growth, maritime security and long-term relevance in the regional order.

Regards

Dr Sarath Obeysekera