Business
CEAT to save the country Rs 11 billion in forex
CEAT Kelani Holdings has announced that in response to the government’s policies to develop domestic industry, it has stepped up capacity utilisation across all its manufacturing plants to supply the full domestic requirement of truck and bus tyres, thereby helping to conserve much-needed foreign currency for the country.
Rising to the challenge of the temporary import restrictions in place, the company which already manufactures the majority of Sri Lanka’s tyre requirements said it could supply 100 per cent of the passenger bus and goods transport sectors’ tyre needs through domestic production.
This would represent a saving of Rs 11 billion a year in foreign exchange through import substitution, the company said.
“The role of local industry is primarily to supply domestic needs and export surplus production, which CEAT Kelani Holdings has done very successfully for many years,” the company’s Managing Director Mr Ravi Dadlani said. “We have periodically invested in expanding capacity and product range and now export to 16 countries. However, although we can supply 100% of the truck and Bus tyre requirement with current production, we also have the option if the need arises, to shift some of our export volumes of markets that have not yet opened up to cater to the domestic market and support the government’s effort to reduce foreign exchange outflows.”
Elaborating on the company’s capacity to meet additional domestic demand created by the restriction of imports, Dadlani disclosed that CEAT Kelani can currently produce two million tyres annually in many categories with an imminent addition within next few of weeks of a further 200,000 car and van radial tyres since new machinery is being installed pending the arrival of foreign technologists to commission the new capacity.
“It is also our opinion that in many applications it is cost-beneficial and a viable alternative to replace imported 10.00 R20 Radial Truck and Bus tyres with locally produced 10.00-20 Heavy Duty 18 PR Bias-ply tyres,” Mr Dadlani said, pointing out that with its ability to be re-treaded multiple times in a lifespan due to its robust heavy duty nylon construction, users can enjoy a lower cost per km from CEAT Truck and Bus tyres. He said this alternative, in addition to saving much-needed foreign exchange to the country, would also support the local tyre re-treading industry which currently is in need of more good quality nylon tyre casings for its growth.
Truck Bus tyres that fit 20-inch rims are among those that have been categorised as restricted for import at present, along with Car radial tyres that fit rims of 12, 13 and 14 inches.
CEAT Kelani has also announced that it has kept the prices of its tyres unchanged since December 2019 to support customers and the economy.
In July the Company launched ‘CEAT LYFMAX’ – a heavy-duty 10.00 R-20 size Bias-ply tyre for trucks, engineered and built specifically for users who consider heavy load-carrying capability with higher mileage a priority. Each tyre weighs a solid 52kgs (115 pounds) and has been extensively tested and benchmarked against two of the top imported brands attributed with load-carrying credentials in the local market.
CEAT Kelani Holdings is considered one of the most successful India – Sri Lanka joint ventures in the manufacturing sector. The joint venture’s cumulative investment in Sri Lanka to date totals Rs 8 billion, inclusive of Rs 3 billion committed in January 2018 for expansion of volumes, technology upgrades and new product development. The company’s manufacturing operations in Sri Lanka encompass pneumatic tyres in the radial (passenger cars, vans and SUVs), commercial (Bias-ply and radial), motorcycle, three-wheeler and agricultural vehicle segments.
Two groundbreaking reports launched by the Pathfinder Foundation in collaboration with the Australian Trade and Investment Commission have laid out a practical vision for Sri Lanka’s economic future, pinpointing the mineral and clean energy sectors as twin engines for sustainable growth and investment.
The reports, unveiled on December 17 in Colombo, present actionable roadmaps for project developers and technology providers, positioning Sri Lanka as an emerging frontier in the global clean energy and critical minerals supply chain.
Key content from the minerals report:
Sri Lanka’s largely underutilised mineral sector holds significant potential, with resources increasingly vital to global industries. The country boasts high-purity graphite, rare earth elements (REEs), mineral sands, and phosphate – all critical for electric vehicles, renewable energy technologies, and high-tech manufacturing.
While current mineral exports are around USD 389 million, the International Trade Centre estimates a potential of USD 778 million, with primary data suggesting the true figure could reach USD 2 billion. To capture this value, the report stresses moving beyond exporting raw materials to domestic refining and beneficiation.
A key strategic recommendation is deeper regional collaboration, particularly under the South Asian Free Trade Area (SAFTA). It highlights an opportunity for Sri Lanka to partner with India’s booming automotive and clean energy sectors, where demand for REEs and permanent magnets is soaring. This could involve upstream Indian investment in Sri Lankan REE resources or exports of rare earth oxides for India’s EV, wind, and electronics industries.
Key content from Clean Energy report:
Parallel to its mineral potential, Sri Lanka is pursuing an ambitious transition to clean energy, targeting carbon neutrality by 2050. The country’s renewable energy sector offers a diverse range of investment and trade opportunities for international stakeholders, spanning large-scale utility projects, distributed generation, and service-based collaborations.
Specific opportunities include utility-scale solar and wind projects, offshore wind resource mapping, and rooftop solar in urban corridors. There is also growing momentum for Battery Energy Storage Systems (BESS) to stabilise the grid, green hydrogen pilot plants, and the development of net-zero industrial parks powered entirely by renewables.
The reports highlight a powerful synergy: Sri Lanka’s minerals are essential for the very clean technologies it seeks to deploy. For instance, its phosphate can be used in lithium iron phosphate (LFP) batteries, while its high-purity quartz is vital for solar-grade silicon.
Australia is identified as a key partner in both sectors. Australian Mining Equipment, Technology, and Services (METS) firms can provide cutting-edge, sustainable mining technology, while Australian expertise in smart grids, BESS, and green hydrogen aligns with Sri Lanka’s long-term energy strategy.
While outlining vast potential, the reports also acknowledge challenges, including regulatory complexities, infrastructure gaps, and the need for enhanced skills development. Proposed solutions include modernising approval processes, developing a national critical minerals strategy, and fostering public-private partnerships.
The consensus from keynote speakers at the event – including Pathfinder Foundation Chairman Bernard Goonetilleke, Australian High Commissioner Matthew Duckworth, and senior representatives from academia, government, and Austrade – was clear. Their collective insight underscored the reports’ central thesis: Sri Lanka is presented with a unique, synergistic opportunity. By strategically developing its mineral wealth and accelerating its clean energy transition in tandem, the nation can attract significant foreign investment, create high-value jobs, and secure a competitive position in the Indo-Pacific’s sustainable economic future.
By Sanath Nanayakkare ✍️
The Commercial Bank of Ceylon has signed a Memorandum of Understanding with Prime Lands and Prime Land Residencies to provide up to 100% financing for customers purchasing condominium units or gated houses developed by the Prime Group, demonstrating the Bank’s unwavering commitment to empowering more Sri Lankans to achieve their dream of home ownership.
The agreement enables prospective homeowners to seamlessly access Commercial Bank’s home loan facilities with tripartite agreements involving the developer, the buyer and the Bank. As the market leader in home loans, Commercial Bank brings unmatched expertise and flexibility to borrowers seeking to invest in properties developed by one of Sri Lanka’s most trusted names in real estate.
Commenting on the partnership, S. Ganeshan, Deputy General Manager – Personal Banking at Commercial Bank said: “This agreement with Prime Lands and Prime Land Residencies creates an excellent opportunity for us to expand our housing loan portfolio while enabling more Sri Lankans to realise one of their life goals. Commercial Bank’s strong home loan offering, combined with Prime Group’s reputation as a leading developer, ensures customers benefit from both financial strength and quality of construction.”
The Prime Group, which positions itself as the leader of real estate artistry in Sri Lanka, comprises subsidiaries associated with lands, houses, finance and condominiums. With over 30 years of trust and excellence and a base of more than 300,000 customers, the Group says it is driven by its evergreen vision: ‘Committed to Creating a Better Place on Earth,’ which continues to inspire its passion to deliver homes that bring customers’ dreams to life.
Mahogany Masterpieces, a Sri Lankan luxury furniture brand, has launched the “An Ode to Grain” collection. This showcase honors mahogany’s natural beauty and the brand’s craftsmanship. The philosophy is to let the wood’s grain guide the design, creating timeless pieces that respect the material. The collection includes new architectural elements like architraves, paneling, and corbels, designed to bring lasting warmth and character to interiors.
Visitors can view the full collection at the Mahogany Masterpieces Showroom and Design Studio which is located at No. 87, Dr. Lester James Peiris Mawatha (Dickman’s Road), Colombo – 05. www.mahoganymasterpieces.com
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