BOI seals US$ 171 million investment with CEAT OHT Lanka
In a landmark development for Sri Lanka’s manufacturing and export sector, CEAT OHT Lanka (Private) Limited has signed an agreement with the Board of Investment of Sri Lanka (BOI) to formalise a US$ 171 million investment, one of the largest recent investments from India into the country.
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 permanently assigned across categories after a three-year licensing period. The acquisition closing process is ongoing.
In line with CEAT’s long-term commitment to Sri Lanka, a Tripartite Memorandum of Understanding 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.
Amit Tolani, Chief Executive, CEAT Specialty, noted: “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.”
