BOI seals $ 171 million investment with CEAT OHT Lanka
The Morning: CEAT OHT Lanka, a subsidiary of CEAT Limited India signed an agreement with the Board of Investment of Sri Lanka (BOI) to formalise a $ 171 million investment, a statement by BOI released on 24 August.
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 assigned across categories after a three-year licensing period. The acquisition closing process is currently ongoing, as per the statement released.
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 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, salaries and benefits, while safeguarding employment with no retrenchments, thereby ensuring stability and continuity as operations transition.
BOI Chairperson 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 Chief Executive Amit Tolani said: “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.”
CEAT Ltd. Chief Financial Officer Kumar Subbiah said: “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.”
OSL take:
Sri Lanka’s ongoing economic activities and overall economic expansion are evident by the increase in investments in the country’s private sector. Apart from the private sector, there are also investments flowing into the country’s development programme. Sri Lanka is on a path to becoming a hub in the South Asian region supported by the country’s geographical positioning in the Indian Ocean, the strong trade ties enjoyed with many foreign countries and the improving ease of doing business environment in the country. All these developments have resulted in Sri Lanka being seen as an emerging business destination in the region with many business/investment opportunities open for foreign businesses/investors. The lucrative ventures open to foreign businesses/investors could be witnessed in the country’s key economic sectors as well as in the fast-growing private sector. This is evident by the many foreign direct investments (FDIs) flowing into many sectors of the country as recorded by Sri Lanka’s BOI. All these factors have resulted in an increase in interest among foreign businesses/investors to explore the expanding opportunities in Sri Lanka while countries like China have placed the country prominently in its Belt and Road Initiative (BRI). While exploring the expanding business/investment opportunities in Sri Lanka, foreign businesses could also look at setting up bases in Sri Lanka to engage with other countries with which Sri Lanka enjoys close business and trade ties.
| Article Code : | VBS/AT/20250901/Z_2 |