CEAT OHT Lanka Signs $171 Million Investment Agreement with Sri Lanka’s BOI

26 Aug 2025 , 10:10 AM

In a landmark deal for Sri Lanka’s manufacturing sector, CEAT OHT Lanka (Private) Limited has signed an agreement with the Board of Investment of Sri Lanka (BOI) to formalise an investment of US$171 million. The deal represents one of the largest Indian investments in Sri Lanka’s recent history and is aimed at expanding the country’s role in global Off-Highway Tyre (OHT) and tracks manufacturing.

The investment follows CEAT Ltd.’s acquisition of the Michelin Group’s Construction Compact Line Business, which includes the Midigama tyre plant and the Casting Product facility at Kotugoda. As part of the transaction, CEAT also secured global rights to the Camso brand, which will be permanently transferred across product categories after a three-year licensing period.

The new capital infusion will scale up export-oriented production of tyres and tracks for compact construction equipment, strengthening Sri Lanka’s position as a competitive hub for high-value manufacturing.

In a show of commitment to the local workforce, CEAT OHT Lanka, Michelin Lanka, and the Inter-Company Employees Union (ICEU) have signed a Tripartite MoU guaranteeing job security for 1,483 employees. The agreement safeguards seniority, past service, salaries, and benefits, with no retrenchments during the transition.

Arjuna Herath, Chairman of the BOI, welcomed the deal, stating: “We view CEAT’s investment as a major vote of confidence in Sri Lanka. It not only secures one of the largest Indian investments in recent times but also strengthens the nation’s standing as a global hub for manufacturing and exports.”

Amit Tolani, Chief Executive of CEAT Specialty, called the agreement a new chapter in CEAT’s partnership with Sri Lanka. “With our vision to expand the global OHT business, this investment will unlock new opportunities for Sri Lanka while shaping CEAT’s future growth story,” he said.

Kumar Subbiah, CFO of CEAT Ltd., added: “Our first priority is a smooth transition while protecting jobs and reinforcing operations in Sri Lanka. This investment underlines CEAT’s long-term commitment to its employees and its ambition to make Sri Lanka a world-class hub for OHT manufacturing and exports.”

The deal cements CEAT’s place as a global leader in the high-value OHT and tracks segment while embedding Sri Lanka at the centre of its international growth strategy. For Sri Lanka, it represents a convergence of foreign investment, industrial expansion, and employment security, aligned with the BOI’s mission to attract high-value capital and fuel sustainable economic growth.

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