Sajith claims of job losses due to MAS Holdings’ factory closures

Wednesday, 25 February 2026 00:23 - - {{hitsCtrl.values.hits}}

Opposition Leader Sajith Premadasa

However, EDB Chief says MAS professionally dealt with closure with no disadvantage to employees
Earlier this week MAS said employees offered alternative placements locally and abroad with relocation support
Workers opting out to get over and above statutory compensation including pay and bonuses to end-April

Opposition Leader Sajith Premadasa yesterday said the closure of two factories operated by MAS Holdings could deal a setback to the economy, with an estimated 26,000 workers set to lose their jobs.

Speaking at an event in Kupiyawatte, he said the relocation of certain apparel manufacturing operations from Sri Lanka to India would further weaken the country’s industrial base.

Premadasa noted that MAS Holdings was among the companies established under the 200 Garment Factories Program initiated by late President Ranasinghe Premadasa. He said the company had manufactured international brands including Victoria’s Secret, Adidas and Calvin Klein, and warned that Sri Lanka risked losing opportunities to produce for such global labels.

Meanwhile, Export Development Board Chairman and CEO Managala Wijesinghe yesterday clarified that MAS Holdings has professionally dealt with its closure of operations at the Methliya factory with no disadvantages to the employee.

Earlier this week MAS Holdings announced that production from the affected Methliya facility will be redistributed across its other plants in Sri Lanka, describing the move as part of a broader restructuring amid prolonged weakness in global apparel demand across key markets such as the US, EU and UK.

The company said employees have been offered transfers to other local facilities or overseas operations, along with relocation support, while those opting to leave will receive compensation above statutory requirements. MAS added that the transition is being carried out with regulatory approvals and that operations at its remaining Sri Lankan facilities are unaffected (read the MAS statement here: https://www.ft.lk/front-page/MAS-to-cease-garment-operations-at-Methliya-plant-shift-to-fabric-manufacturing/44-788690).