Deputy Minister of Industry Chathuranga Abeysinghe says Sri Lanka’s apparel industry remains resilient despite recent developments involving Hela Apparel Holdings PLC, urging calm.
In a Facebook post, Abeysinghe said the industry has weathered previous crises, including the COVID-19 pandemic and the country’s economic crisis.
“Keep Calm, Keep Moving,” he wrote, adding that the apparel sector “has always been resilient” and has faced no major internal issues in recent times apart from global challenges.
His remarks came as the Board of Investment (BOI) sought to reassure workers following reports that Hela Apparel Holdings PLC, together with Hela Clothing Ltd. and Foundation Garments Ltd., had filed applications in the Commercial High Court seeking court-ordered winding up, citing sustained liquidity constraints.
The BOI said the developments would not affect employees of Hela Clothing (Pvt) Ltd and Foundation Garments (Pvt) Ltd, as they had already been transferred to Emerald Clothing (Pvt) Ltd under a restructuring exercise completed before the winding-up applications were filed.
According to the BOI, 3,674 employees were absorbed into Emerald Clothing in two phases completed on May 1 and June 1, 2026. The workforce includes 251 executives, 393 staff members and 3,030 team members.
The BOI said all transferred employees have continued their employment with Emerald Clothing with continuity of service and under their existing terms and conditions.
The Board said it facilitated and monitored the restructuring process through its Industrial Relations Department and will continue to engage with Emerald Clothing and other stakeholders to safeguard the interests of employees and monitor employment conditions. (Newswire)