The Frontline Socialist Party (FSP) has urged the NPP government to prevent Japan’s Onomichi Dockyard Company from selling its 51% ownership stake in the Colombo Dockyard Limited (CDL) to Indian government-owned Mazagon Dock Shipbuilders Limited, Mumbai, a leading shipbuilder.

FSP spokesman Pubudu Jayagoda told The Island yesterday (27) that the move seemed to be in line with the overall India-Sri Lanka understanding on the basis of the recently signed memorandum on defence cooperation.

Against the backdrop of deteriorating financial situation, the Japanese company has informed the board of directors of CDL of its plans to divest its 51 percent ownership stake in the international shipbuilding and repair company. The Japanese shipbuilder made the announcement in early Dec last year.

Alleging that an agreement has been reached on the sale of Onomichi’s controlling ownership stake to the Indian ship builder, Jayagoda questioned

the move as Mazagon primarily built a range of warships and attack submarines. Jayagoda pointed out that according to Mazagon’s profile, the Indian government-owned business undertaking was involved with European companies engaged in ship and submarine construction.

Addressing a Local Government election meeting at Weeraketiya, Pallekanda, in support of those contesting the May 6 election on the ticket of Jana Aragala Sandhanaya (JAS), the executive committee member of JAS Jayagoda emphasized that in terms of the agreement between Sri Lanka and Japan, Onomichi couldn’t sell its stake without the Sri Lankan government’s approval. Therefore, the NPP government should intervene to halt the Japanese-Indian move, the FSP spokesman said while urging the parliamentary opposition to publicly oppose the planned sale of the Japanese stake.

Among other stakeholders are Sri Lanka Insurance, Sri Lanka Ports Authority and EPF.

By Shamindra Ferdinando