BOI secures USD 171 Mn investment

The investment follows CEAT Ltd.’s acquisition of Michelin Group’s Construction Compact Line Business, which includes the Midigama and Kotugoda plants in Sri Lanka. As part of the deal, CEAT gains global ownership of the Camso brand, which will be fully assigned after a three-year licensing period. The acquisition process is currently ongoing.

The agreement further positions Sri Lanka as a competitive global hub for Off-Highway Tyres (OHT), supporting export-led industrial growth.

To ensure stability during the transition, a tripartite Memorandum of Understanding was signed between CEAT OHT Lanka, Michelin Lanka, and the Inter-Company Employees Union (ICEU). The MoU guarantees job security for approximately 1,483 employees, with full retention of past service, seniority, salaries, and benefits — and no retrenchments.

BOI Chairman Arjuna Herath stated, “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.”

Amit Tolani, Chief Executive of CEAT Specialty, 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.”

Kumar Subbiah, Chief Financial Officer of CEAT Ltd., 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.”