Tyre maker Ceat OHT Lanka (Private) Limited has signed an agreement with the Board of Investment of Sri Lanka (BOI) to formalise a US$171 million investment, in a landmark development for Sri Lanka’s manufacturing and export sector.
According to the BOI, the deal is one of the largest recent investments from India into Sri Lanka.
This investment follows Ceat Ltd.’s acquisition of French tyre maker Michelin Group’s construction compact line business, including its Sri Lanka-based Midigama plant and casting product plant in Kotugoda.
The transaction gives Ceat global ownership of the Camso brand, which will be permanently assigned across categories after a three-year licensing period. The acquisition closing process is ongoing.
Issuing a statement, the BOI states the agreement strengthens Sri Lanka’s profile as a global hub for Off-Highway Tyres (OHT), positioning the country as a competitive centre for export-led growth.
In line with Ceat’s long-term commitment to Sri Lanka, a tripartite MoU has been signed between Ceat OHT Lanka, Michelin Lanka, and the Inter-Company Employees Union (ICEU), guaranteeing job security for approximately 1,483 employees. The MoU ensures full retention of past service, seniority, salaries and benefits, while safeguarding employment with no retrenchments, thereby ensuring stability and continuity as operations transition.
Amit Tolani, CEO, Ceat Specialty, noted: “BOI’s approval for Ceat OHT Lanka marks a new chapter in our partnership with Sri Lanka. With Ceat’s vision of expanding our global off-highway tyre business, we have great plans for this country. This investment will bring exciting new opportunities for Sri Lanka while playing a central role in our future growth.”
With this agreement, Ceat has reinforced its position as a global player in the high-margin OHT and tracks segment, while embedding Sri Lanka at the centre of its international expansion strategy.