Built alongside the existing CEAT plant in Kelaniya, the plant will be the only radial tyre project in the country, with an initial installed capacity of 26,000 tyres per month, the company said on Thursday.
The plant will initially focus on two ranges of radials - for cars and vans (which is currently the most sought after sizes in the local market).
"These products will cater to most models of cars and vans, providing motorists with tyres of international standard, that are matched to local road and usage conditions," Oscar Braganza, managing director, CEAT, Sri Lanka said.
The Indian company currently dominates the local market, commanding over 50 percent of the pie in segments like trucks, light trucks, farm tyres and three wheelers.
CEAT Sri Lanka has tyre manufacturing plants at Kalutara and Kelaniya, with its product portfolio including tyres for trucks, buses, forklifts and heavy vehicles like payloaders, graders and backhoe loaders.
The company has exported till date over 1800 container loads of tyres to India, Dubai, Singapore, Philippines, Egypt, Africa and countries in the SAARC region.