CEAT signs $171m BOI deal to strengthen Sri Lanka’s tyre exports
- CNL Reporter
- August 25, 2025
- Business News, News
- CEAT
- 0 Comments
CEAT OHT Lanka Ltd. has signed an agreement with the Board of Investment of Sri Lanka (BOI) for a $171 million investment, one of the largest Indian inflows in recent years. The deal follows CEAT Ltd.’s acquisition of Michelin’s Construction Compact Line business, including facilities in Midigama and Kotugoda, giving the company global ownership of the Camso brand after a three-year licensing period.
The agreement cements Sri Lanka’s role as a hub for Off-Highway Tyres (OHT) and includes a Memorandum of Understanding with Michelin Lanka and the Inter Company Employees’ Union (ICEU), securing jobs and benefits for 1,483 employees.
BOI Chairman Arjuna Herath hailed the investment as a major step in strengthening the country’s manufacturing and export profile, while CEAT executives reaffirmed their long-term commitment to the island.
However, industry observers warn that Sri Lanka’s tyre sector continues to face challenges such as high costs, lack of raw material access, and weak policy support. Despite the private sector’s role as the engine of growth, government indifference has hampered industrial competitiveness. CEAT’s expansion signals strong investor confidence, but sustaining momentum will require clearer policies to support manufacturers and exporters.
