Sri Lanka
USA
Canada
India
UK
UAE
Sri Lanka’s largest apparel manufacturer, MAS Holdings, is planning to close two more factories and reduce staff at a third, putting nearly 26,000 jobs at risk. The decision comes as the company looks to return to profitability, reducing its workforce from the current 96,000 employees to around 70,000.
Recent closures include the MAS Kreeda Methliya factory at Thulhiriya’s MAS Fabric Park, with the MAS Kreeda Vaanavil factory expected to follow. Factories in export processing zones under the MAS Active division are also reportedly scheduled for closure. Meanwhile, workforce reductions are planned at MAS Bodyline in Horana.
MAS Holdings has said it will provide affected employees with options, including three months’ salary, transfers to other factories, and compensation payments. However, workers who have previously faced transfers say these alternatives are often impractical due to travel distance or other logistical challenges.
The company manufactures products for global brands such as Victoria’s Secret, Nike, Adidas, Lululemon, Calvin Klein, and Tommy Hilfiger. Experts warn that despite high international standards for worker rights, MAS lacks a clear approach to job security for its own staff.
No trade unions: Employees cannot collectively negotiate employment rights.
Shift to India: Several factories are expected to reopen in India, where labor, utility, and operational costs are lower.
Government inaction: Experts argue the Sri Lankan government failed to mitigate challenges from increased US import tariffs, placing local factories at a disadvantage.
Industry insiders also allege MAS management is engaging with media leaders to control the narrative around the closures. Experts urge immediate attention to bilateral and multilateral trade agreements to protect the future of Sri Lanka’s apparel workforce.
