Monday Feb 23, 2026
Monday Feb 23, 2026
Monday, 23 February 2026 01:41 - - {{hitsCtrl.values.hits}}
MAS Holdings has announced it will cease garment manufacturing operations at its Methliya plant in Thulhiriya and repurpose the facility to strengthen fabric production, citing prolonged contraction in global apparel demand.
The decision, communicated on 19 February to 2,200 employees at the Methliya facility within the MAS Fabric Park, marks a strategic pivot towards knitting, dyeing, and finishing operations. The company said the plant’s location within the Fabric Park, which houses infrastructure for wet processing, makes it better suited for upstream textile manufacturing.
Garment production capacity currently housed at Methliya will be redistributed across other MAS apparel plants in Sri Lanka.
The move comes amid sustained weakness in global apparel markets. Demand in key export destinations including the US, EU, and UK has softened due to economic slowdowns, persistent inflation, tariff pressures, and shifting trade policies. Major apparel exporters such as Vietnam, China, Bangladesh, and Sri Lanka have reported flat or declining order volumes.
MAS said the restructuring is part of a broader effort to reposition for long-term stability. The company has in recent years also exited operations in Haiti and the Dominican Republic as part of global rationalisation measures.
Employees at the Methliya plant have been offered transfers to other MAS facilities locally or to operations in Jordan, along with a three-month salary incentive to support relocation.
In addition, for those who opt not to accept alternative roles, the company said it will provide compensation exceeding statutory requirements under Sri Lankan labour law, settle all dues, and continue wage payments through end-April, including the April bonus.
MAS said the transition is being implemented in compliance with labour regulations, with approvals from relevant authorities, and that employees have been engaged through a structured process.
Operations at all other MAS facilities remain unaffected, the company said, adding that any further rightsizing decisions, locally or overseas, would be communicated directly to employees.
