Colombo Dockyard loses shipbuilding order due to economic crisis

Norwegian offshore wind service company Edda Wind has agreed with Colombo Dockyard PLC to terminate the construction and delivery contracts for two commissioning support operation vessels (CSOVs), global shipping and maritime news platform Splash 24/7 reported yesterday.

The terms and conditions of the cancellation have not been disclosed.
According to the media report, the hydrogen-ready CSOVs were scheduled for delivery under the Norwegian flag in January 2024 and July 2024.

“The adverse development in Sri Lanka, which has become detrimental to its population, as well as to the business and financial sectors, has unfortunately led to a situation whereby Colombo Dockyard is unable to fulfill the contracts,” said Edda Wind CEO Kenneth Walland as quoted by Splash 24/7. The Haugesund-based Edda Wind shared that it did not pay any pre-delivery installments to Colombo Dockyard, and only incurred minor costs in relation to the project. It added that under the agreement it will receive compensation which will give a “modest positive profit and loss effect.” Walland further stated that Edda Wind’s growth ambitions remain unchanged, and the company is evaluating alternatives for future fleet expansion.