Image Source: Sabrata, CC BY-SA 4.0, via Wikimedia Commons
CEAT OHT Lanka (Private) Limited has given a significant boost to Sri Lanka’s manufacturing and export capabilities by formalizing a landmark US$171 million investment agreement with the Board of Investment of Sri Lanka (BOI).
This substantial capital injection represents one of the largest recent Indian investments in the country’s manufacturing sector, signaling strong confidence in Sri Lanka’s economic potential and its role as a global export hub.
Strategic Expansion and Global Ambitions
The investment is primarily aimed at expanding Off-Highway Tyre (OHT) and Tracks manufacturing capacity in Sri Lanka.
The production will be concentrated at CEAT OHT Lanka’s facilities in Midigama and Kotugoda, with a strategic focus on export-led production of tyres and tracks for compact construction equipment.
This initiative is poised to further strengthen Sri Lanka’s profile as a competitive center for high-value manufacturing and a global hub for OHT.
This comes after CEAT Ltd. acquired the Michelin Group’s Construction Compact Line Business**, which includes the Casting Product facility in Kotugoda and the Midigama plant in Sri Lanka. Following a three-year license period, CEAT *global ownership of the Camso brand* will be permanently awarded across categories as a result of the acquisition.
The process of concluding the transaction is still under progress. By placing Sri Lanka at the core of its international development plan, CEAT hopes to solidify its position as a major player in the high-margin OHT and tracks market.
Ensuring Employee Stability and Growth
A key aspect of this investment is the robust commitment to employee welfare. Michelin Lanka, CEAT OHT Lanka, and the Inter-Company Employees Union (ICEU) have all signed a Tripartite Memorandum of Understanding (MoU).
This agreement guarantees job security for approximately 1,483 employees, ensuring their full retention of past service, seniority, salaries, and benefits.
The MoU explicitly safeguards employment with no retrenchments, thereby providing stability and continuity during the operational transition. This measure aligns with the BOI’s mandate to attract high-value foreign investment while driving sustainable economic development and employee assurance.
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