Sri Lanka’s controversial Colombo Dockyard deal with India has sparked political outrage, with FLSP’s Pubudu Jagoda alleging it poses a severe threat to national security. He claims the land and shares were sold at shockingly undervalued rates, bypassing proper procedures and trapping Sri Lanka in a dangerous geopolitical alliance.
Frontline Socialist Party (FLSP) Education Secretary Pubudu Jagoda has raised alarm over the recent sale of 51% shares in Colombo Dockyard Company Limited to India’s Mazagon Dock Shipbuilders (MDL), alleging the deal was done at undervalued rates and without proper transparency.
Speaking at a press conference in Colombo, Jagoda claimed the shares were sold at just Rs. 1 per share to a company owned by the Indian Ministry of Defence, and that 25 acres of valuable port-side land was effectively handed over for Rs. 62,250 per perch.
“This is a direct threat to Sri Lanka’s national security, especially considering its strategic location near Colombo and Trincomalee Ports,” he said. “The agreement was signed on June 27, but no formal board approval was obtained, and employees were shown the document without being given any chance to raise concerns.”
Jagoda accused the government of deceiving the public, pointing out that although a Japanese investor was initially mentioned, the final decision was made to hand over control to India. “Why wasn’t it released to the stock market? Why didn’t the government buy back the shares?”
The investment by MDL reportedly stands at $47 million, with an expected net profit of $10 million annually from ship repairs alone. Jagoda argued that even on a loan, the investment could be recovered within five years.
He further calculated that leasing the Dockyard land alone would bring in similar revenue. “This land is in a port ranked 16th in the world. Giving it away for this price is economic suicide,” he said. “An acre is worth $33,200 per month, meaning a perch is valued at just $207.50 or Rs. 62,250 an absurd figure for such prime property.”
Jagoda also referred to the Indo-Lanka Defence Cooperation Agreement signed on April 5, 2025, stating that it includes clauses allowing India to build and repair ships, and conduct maritime surveys in Sri Lankan waters.
“This is not just a bad deal it’s a betrayal of national sovereignty,” he warned. “The economic loss is massive, but the geopolitical consequences are even more dangerous. The public must rise up and resist this treasonous agreement.”
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