In a major boost for Sri Lanka’s manufacturing and export sector, CEAT OHT Lanka (Private) Limited has formalized a $171 million investment agreement with the Board of Investment of Sri Lanka (BOI). This represents one of the largest recent investments originating from India into the country. The investment follows CEAT Ltd’s acquisition of Michelin Group’s Construction Compact Line Business, which includes their Midigama and Kotugoda plants in Sri Lanka.
This acquisition grants CEAT full global ownership of the Camso brand, set to be permanently integrated across product categories after a three-year licensing phase. The transaction is currently in the closing process. The deal further elevates Sri Lanka’s standing as a key global center for Off-Highway Tyres (OHT), reinforcing the nation’s role as a competitive hub for export-driven growth.
Demonstrating CEAT’s commitment to Sri Lanka’s workforce, a Tripartite Memorandum of Understanding (MoU) was signed between CEAT OHT Lanka, Michelin Lanka, and the Inter-Company Employees Union (ICEU). The MoU guarantees job security for around 1,483 employees, preserving service continuity, seniority, salary structures, and benefits, while ensuring no layoffs during the operational transition.
Commenting on the milestone, Arjuna Herath, Chairman of the BOI, said, “We warmly welcome CEAT’s substantial investment, among the largest from India in recent years. This approval reflects our confidence in CEAT’s vision and will enhance Sri Lanka’s role as a global manufacturing and export hub.”
Amit Tolani, Chief Executive of CEAT Specialty, expressed enthusiasm for the partnership’s future: “The BOI’s endorsement marks a new era for CEAT OHT Lanka. We have ambitious plans to expand our global off-highway tyre operations, and this investment unlocks exciting opportunities for Sri Lanka while supporting our growth strategy.”
Kumar Subbiah, CFO of CEAT Ltd, emphasized the focus on a smooth transition and employee welfare: “Our top priority is ensuring a seamless handover while protecting jobs and strengthening our Sri Lankan operations. This investment confirms CEAT’s long-term dedication to our people and establishing Sri Lanka as a world-class center for OHT manufacturing and exports.”
This agreement positions CEAT as a major global contender in the high-margin OHT and track segments, anchoring Sri Lanka at the heart of its international expansion. The move combines industrial development, export competitiveness, and employee assurance, aligning closely with the BOI’s mission to attract premium foreign investments and foster sustainable economic progress.
