CEAT OHT Lanka (Private) Limited, a subsidiary of CEAT Ltd., has taken a major step in expanding its international presence by signing a landmark agreement with the Board of Investment of Sri Lanka (BOI), formalising a US$171 million investment—one of the largest Indian investments in Sri Lanka in recent years.
This strategic investment follows CEAT Ltd.’s acquisition of Michelin Group’s Construction Compact Line Business, which includes the Sri Lanka-based Midigama plant and Casting Product plant in Kotugoda. As part of the deal, CEAT will gain global ownership of the Camso brand, which will be permanently assigned across categories after a three-year licensing period. The acquisition process is currently in its final stages.
The agreement positions Sri Lanka as a key hub for Off-Highway Tyres (OHT), enhancing the country’s profile in the global manufacturing and export sector. CEAT’s investment aligns with its long-term strategy of driving export-led growth and strengthening high-margin segments in OHT and tracks.
To ensure workforce stability during this transition, CEAT OHT Lanka has signed a Tripartite Memorandum of Understanding (MoU) with Michelin Lanka and the Inter-Company Employees Union (ICEU). The MoU guarantees job security for 1,483 employees, ensuring retention of past service, seniority, salaries, and benefits, with no retrenchments. This initiative reinforces operational continuity while safeguarding employee welfare.
With this move, CEAT not only strengthens its position as a global leader in OHT but also establishes Sri Lanka at the center of its international expansion strategy. The investment represents a synergy of industrial growth, export competitiveness, and employee assurance, supporting BOI’s vision to attract high-value foreign investments and drive sustainable economic development.