Oct 29, 2010 (LBO) – Sri Lanka’s Colombo Dockyard delivered the second of a pair of passenger vessels for an Indian customer but warned profitability could dip this year owing to the effects of recession and growing competition. The island’s 30-year ethnic war ended in May 2009 leading to the removal of marine war-risk insurance advisories and faster economic growth.
Managing director Mangala Yapa said the yard’s order book for new buildings was full but it faced tough competition especially from Chinese yards in the repair business.
Yapa said he was confident the yard would do well this year too having had sales of 12 billion rupees and profits of two billion last year.
“Now we’re experiencing tough competition from Chinese yards,” he said in a speech to flag off the new vessel.
“There could be some drop in profitability because of the competitive nature of the market.”
The yard , which books profits on vessel delivery, Thursday delivered the second of a pair of passenger craft for India’s Lakshadweep islands.
The vessel, which can carry 250 passengers and t00 tonnes of cargo, was built for the Administration of Union Territories of Lakshadweep and is named Lakshadweep Sea.
She set sail from Colom