Sri Lanka is emerging as a growing overseas market for India’s tanker shipbuilders, with exports of Indian-built tankers to the island nation increasing sharply during the first quarter of FY2026-27.
India’s tanker exports surged more than six-fold year-on-year to $1.36 billion in April-June 2026, up from $221.1 million in the corresponding period a year earlier, according to Commerce Ministry data.
Sri Lanka recorded one of the strongest increases among India’s emerging tanker markets. Shipments to the country rose to $56.5 million during the quarter, compared with just $7.9 million a year earlier.
The increase comes as Indian shipyards expand their presence in the international commercial vessel market. Alongside Sri Lanka, Indian-built tankers were exported to major maritime and energy markets including the UAE, Singapore and Oman, as well as Egypt, South Africa, Vietnam, Indonesia and Mozambique.
The UAE remained the largest destination, receiving tanker shipments worth $900.8 million , while Singapore ranked second with exports of $146.4 million. The diversification of destinations indicates growing acceptance of Indian-built vessels across Asia, Africa and the Middle East.
The growth is significant for India’s shipbuilding sector, which is seeking to expand beyond defence vessels and capture a larger share of the global commercial ship market. Rising deliveries and overseas orders are strengthening the country’s capabilities in higher-value shipbuilding and maritime engineering.
Sri Lanka’s expanding role as a destination also comes amid deeper maritime cooperation between the two countries. India’s Mazagon Dock Shipbuilders has acquired a controlling stake in Colombo Dockyard, creating opportunities for greater technical cooperation and regional shipbuilding and repair activity.
The stronger tanker trade with Sri Lanka could therefore provide Indian shipbuilders with a nearby market while supporting broader efforts to establish India as a competitive shipbuilding and maritime-services hub in the Indian Ocean region.