COLOMBO, Sri Lanka, August 26, 2025 (ePRESS) – Sri Lanka’s manufacturing and export sector received a major boost as CEAT OHT Lanka (Private) Limited signed an agreement with the Board of Investment (BOI) to formalise a US$171 million investment — one of the largest recent inflows from India.
The investment comes after CEAT Ltd. acquired Michelin Group’s Construction Compact Line business, which includes the Midigama plant and the Casting Product plant in Kotugoda. With this deal, CEAT gains global ownership of the Camso brand, which will be fully transferred after a three-year licensing period.
Officials said the agreement positions Sri Lanka as a key global hub for Off-Highway Tyres (OHT), strengthening the country’s role in export-led growth.
In a move to protect workers, CEAT OHT Lanka, Michelin Lanka, and the Inter-Company Employees Union (ICEU) signed a Tripartite Memorandum of Understanding, ensuring job security for around 1,483 employees. The MoU guarantees retention of seniority, past service, salaries and benefits, while ruling out retrenchments during the transition.
BOI Chairman Arjuna Herath said the deal was a landmark for Sri Lanka. “We welcome CEAT’s significant investment, which is among the largest from India in recent times. This approval underlines our confidence in CEAT’s vision and strengthens Sri Lanka’s profile as a manufacturing hub,” he said.
Amit Tolani, Chief Executive of CEAT Specialty, said the investment would unlock new opportunities. “This marks a new chapter in our partnership with Sri Lanka. With our global OHT growth plans, Sri Lanka will play a central role in CEAT’s future,” he added.
