India’s CEAT Ltd. announced on Friday that it will expand tyre manufacturing capacity at its export-oriented plants in Sri Lanka, amid growing tariff pressures on shipments from India to the United States.
CEAT’s subsidiary, CEAT OHT Lanka, signed a $171 million investment agreement with the Board of Investment of Sri Lanka, aimed at ramping up production of tyres and construction equipment tracks for global markets. The company said the move underscores its focus on strengthening export-led growth through Sri Lanka.
The investment marks one of the largest Indian commitments in Sri Lanka’s manufacturing sector to date. CEAT currently operates two factories in the island nation — in Midigama and Kotugoda — which were added to its portfolio following the $225 million acquisition of Camso from French tyre major Michelin last year.
According to Emkay Research, about 90% of Camso’s revenues come from North America and Europe, making the Sri Lankan operations strategically important as Indian exports face steeper U.S. tariff rates compared to those from Colombo.
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