Hela employees unaffected by winding down, already absorbed by Emerald Clothing: BOI

Saturday, 8 August 2026 01:39 - - {{hitsCtrl.values.hits}}

Following Hela Apparel’s announcement of winding down the previous day, the Board of Investment of Sri Lanka (BOI) yesterday said the employment of workers formerly attached to Hela Clothing Ltd. and Foundation Garments Ltd. remains secure.

This follows their full absorption into Emerald Clothing Ltd. under a group restructuring exercise completed well ahead of recent developments concerning Hela Apparel Holdings PLC.

Hela Apparel Holdings PLC, together with Hela Clothing and Foundation Garments, has filed applications in the Commercial High Court seeking Court-ordered winding up, citing sustained liquidity constraints.

“The BOI wishes to clarify that these developments do not affect the livelihoods of the employees concerned, as their transfer to Emerald Clothing was formally completed before the winding-up filings,” the agency said in a statement.

The BOI said that, according to official confirmation issued by Emerald Clothing to the BOI, a total of 3,674 employees — comprising 251 executives, 393 staff members and 3,030 team members — were transferred and absorbed into Emerald Clothing in two phases.

The first phase, effective 1 May 2026, saw 2,504 employees transferred from the Palapathwela and Thihariya facilities and the Emerald Head Office. The second phase, effective 1 June 2026, transferred a further 1,170 employees from the Naula and Ukuwela facilities and the Head Office.

The confirmation letter states that all transferred employees have continued their employment with Emerald Clothing with continuity of service, under the applicable terms and conditions of employment.

The BOI, which facilitated and monitored the restructuring process through its Industrial Relations Department, reiterates its commitment to safeguarding worker interests within its portfolio of approved enterprises. The Board will continue to engage with Emerald Clothing and relevant stakeholders to ensure a smooth transition and to monitor employment conditions in the future.