Closure of Walkers Colombo Shipyard a national loss - Dr. Obeysekera

Walkers Colombo Shipyard (Pvt) Ltd has been closed down and urgent steps should be taken to reopen it, former founding Managing Director Dr Sarath Obeysekera said.

He noted that Walkers Colombo Shipyard faced severe financial distress and legal disputes with banks, including Commercial Bank, during the 2019–2021 period following loan defaults and restructuring efforts by its parent company, MTD Walkers PLC.

These developments created prolonged uncertainty over the shipyard’s operations.

Dr, Obeysekera said the Sri Lanka Navy had also intervened in an effort to keep the shipyard operational by entrusting it with lifting and docking naval tugboats, but the arrangement did not continue.

Due to mounting financial constraints, the shipyard’s properties were mortgaged to a local bank, which later took over the assets after the company defaulted on a USD 5 million loan.

Since then, facilities that once generated substantial foreign exchange through ship repairs and a range of maritime services have been left idle and deteriorating.

“This is a major crime, and decisive steps must be taken to reopen the shipyard and restore it to its former glory,” he said, to revive jobs, skills, foreign exchange earnings and national maritime capability.