BOI inks USD 171Mn CEAT investment deal

25 August 2025 12:55 pm Views - {{hitsCtrl.values.hits}} 7 Bookmark

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Colombo, August 25 (Daily Mirror) - The Board of Investment (BOI) has inked an agreement with CEAT OHT Lanka (Private) Limited to formalise a USD 171 million investment, one of the largest recent inflows from India into Sri Lanka’s manufacturing and export sector.

The deal follows CEAT Ltd.’s acquisition of Michelin Group’s Construction Compact Line Business, including the Midigama and Kotugoda plants, giving CEAT global ownership of the Camso brand after a three-year licensing period.

A tripartite MoU signed with Michelin Lanka and the Inter-Company Employees Union guarantees job security for 1,483 employees, ensuring full retention of service, seniority, salaries and benefits with no retrenchments.

BOI Chairman Arjuna Herath said the investment elevates Sri Lanka’s profile as a global hub for off-highway tyres (OHT). CEAT executives stressed their long-term commitment, noting the move positions Sri Lanka at the centre of the company’s global expansion strategy.

Comments - 7

Prasad Edirisooriya Monday, 25 August 2025 01:13 PM

SL will eventually become an Indian colony.

77 7

sanath Monday, 25 August 2025 03:44 PM

Do you prefer a Chinese colony?

4 19

Lokka Monday, 25 August 2025 01:21 PM

This regime has won the investors confidence and this agreement shows it very well.

11 59

S. Holmes Monday, 25 August 2025 02:42 PM

Putha read the article again, this is the process of formalising an agreement already in place where after 3 years a new ownership is taking over. CEAT bought over Sri Lanka's once famous Kelani Tyres many years ago.

20 8

RanjithT Monday, 25 August 2025 08:15 PM

Lokka. There is no confidence factor in this. Comrades in fact are just ignorant and shows lack of understanding of investment concepts.

19 0

RanjithT Monday, 25 August 2025 03:30 PM

This deal as stated in the report it is to FORMALIZE a deal. The deal is handled by CEAT India and has acquired Michelin plant in Midigama for all cash deal of about US$ 225M. Employees of Michelin plant had been objecting to change of ownership for the last couple of months. The total money transaction was possibly done outside SL and there is no actual inflow to SL but it changes SEAT portfolio holding here. There is Nothing to brag about. This is a "big queckhen"

21 7

Luxman Maddumahewa Monday, 25 August 2025 04:10 PM

No money, just ownership transfer old ownership get the money, nothing for the country but as usual people will be deceived.

5 3

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