BOI seals landmark $ 171 m investment with CEAT OHT Lanka

BOI Chairman Arjuna Herath, CEAT CFO Kumar Subbiah, and CEAT Specialty Chief Executive Amit Tolani (4-6th from left) with senior representatives of the BOI and CEAT OHT Lanka at the signing of the FDI agreement

• Agreement formalises one of the largest Indian investments in Sri Lanka’s manufacturing sector
• Investment will expand Off-Highway Tyre (OHT) and tracks manufacturing capacity in Sri Lanka
• Facilities at Midigama and Kotugoda to focus on export-led production of tyres and tracks for compact construction equipment
• Job security assured for 1,483 employees through tripartite MoU 
• Investment strengthens Sri Lanka’s standing as global export hub for high-value manufacturing

 CEAT OHT Lanka Ltd., said yesterday that it has signed an agreement with the Board of Investment of Sri Lanka (BOI) to formalise a $ 171 million investment, one of the largest recent investments from India set to boost the manufacturing and export profile of the country. 

This investment follows CEAT Ltd.’s acquisition of Michelin Group’s Construction Compact Line business, including their 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 licencing period. The acquisition closing process is ongoing.

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, the company said in a statement. In line with CEAT’s long-term commitment to Sri Lanka, a tripartite Memorandum of Understanding (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, and salaries and benefits, while safeguarding employment with no retrenchments, thereby ensuring stability and continuity as operations transition.

Commenting on the agreement, BOI Chairman Arjuna Herath said: “We welcome CEAT’s significant investment into Sri Lanka, which is among the largest investments from India in recent times. This approval underlines our confidence in CEAT’s vision and will further elevate Sri Lanka’s position as a global manufacturing and export hub.”

CEAT Specialty CEO Amit Tolani noted: “The 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 OHT 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.”

CEAT Ltd., CFO Kumar Subbiah added: “Our immediate priority is ensuring a seamless transition while safeguarding jobs and strengthening our operations in Sri Lanka. This investment reaffirms CEAT’s long-term commitment to our employees and to building Sri Lanka as a world-class hub for OHT manufacturing and exports.”

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. The move represents a convergence of industrial growth, export competitiveness, and employee assurance, aligned with the BOI’s mandate to attract high-value foreign investment and drive sustainable economic development.