Garment factory in Katunayake FTZ shuts down indefinitely, 2,000 jobs at risk

21 May 2025 08:56 am Views - {{hitsCtrl.values.hits}} 63 Bookmark

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By T.K.G. Kapila

The NEXT apparel manufacturing factory, a long-standing apparel exporter in the Katunayake Free Trade Zone (FTZ), has closed its operations indefinitely as of yesterday (20), leaving around 2,000 employees in uncertainty.

The factory, which has been in operation since 1978, was a British investment project, producing garments primarily for export to London.

Workers at the facility expressed shock over the sudden closure, saying they had received no prior warning before the factory gates were locked.

According to a document issued to its employees by the factory’s administration, the decision to shut down was driven by escalating production costs in Sri Lanka, which the company stated had become unsustainable.

As of today, the premises remain closed with only security personnel on-site. The security staff confirmed that no responsible officers from the company were present at the location, further fueling concerns among the affected workforce.

The sudden closure marks a significant blow to both the employees and the local apparel manufacturing sector, which has been grappling with rising operational challenges in recent years.

Authorities and industry representatives are yet to issue an official statement regarding the situation.

Comments - 63

Iwazaru Wednesday, 21 May 2025 09:07 AM

One main cause is the high electricity tariffs. These were agreed by the government under Ranil and now we have to pay the penalty. The other is the high cost of living and wages,

22 59

S P Wednesday, 21 May 2025 11:43 AM

So it’s Ranil again!

12 34

Zarook Wednesday, 21 May 2025 05:25 PM

Pacha Kumara no action Pacha talking only. What can you expect from pachayas who have not even run a tea shop?

7 5

Panacea Wednesday, 21 May 2025 12:50 PM

Okay, Ranil is to be blamed for all the woes in the country. So, that is why NPP guys were given the executive presidency and 2/3 majority in the parliament to solve these problems. Why not reduce the rates by 30% as promised before elections? Go on blaming the UNP and SLFP. That will solve all our problems.

3 44

Kikazaru Wednesday, 21 May 2025 12:52 PM

Yes, it was not my "Siya"!

1 6

K.M. Bandara - (Katunayake FTZ employee who lost the job) Wednesday, 21 May 2025 12:55 PM

If the Electricity charges are not reduced, about 12 Factories will be closed in the coming months. Well, the cost of living too is very high - Rice over 260/-, Coconuts over 260/- and Salt Not available anywhere and if it is available its over Rs. 500/- per kg. How could people survive and what is the promise NPP gave. All will have to come to the street to chase AKD and his team very soon.

7 21

nizam Wednesday, 21 May 2025 02:58 PM

KM your response is more realistic. Apart from electricity the cost of living is a grieving issue, this regime and their flock came with promises AND NOTHING done to date. All they do is change focus by saying things irrelevant or without facts so people are carried away. This is one of the older factories and were successful over the years. Act fast. We don't need committees to waste time whilst the puppets dance and the circus goes on.

2 7

B P Wednesday, 21 May 2025 03:51 PM

Don't take all criticizing NPP as persons who support other Parties; remember the no. of NPP dropouts at the last election.

0 3

Pusa Thursday, 22 May 2025 12:59 AM

NPP: hoooooooooooooooooo !!! Den Sepada ?

0 0

හතරැස් පචයා Wednesday, 21 May 2025 09:17 AM

Come on NPP, have anything to say?

9 50

DH Wednesday, 21 May 2025 10:09 AM

As usual they will pay some hefty compensation using tax payer money. Nothing to rectify underline issues.

3 36

joshua Wednesday, 21 May 2025 10:35 AM

ask pacha Tissa, Yohan etc.

16 11

OBSERVER OF ALL COMMENTS Wednesday, 21 May 2025 12:17 PM

JOSHUA, SPOT ON. YOHAN, TISSA AND ZAROOK ARE THE PANCHA'S OF THEIR WIPED OUT LEADER, ALL THOSE THREE IN PARTICULAR KEEP DRYING TO DISCREDIT ANURA/NPP AND THEIR ADVISORS. MAYBE SOME OF THE ILL-GOTTEN MONEY HAVE PASSED THROUGH THEIR PALMS.

12 7

Dr. Dee esquire Wednesday, 21 May 2025 01:17 PM

Past 75 odd years government faults! They don’t know anything!

0 8

Future Sri Lanka Pacha is a lie Wednesday, 21 May 2025 09:34 AM

This is a conspiracy by opposition parties. We should be happy to continue our unconstitutional support to NPP even there are no salt, no job, no food, whatever, no problem, the only thing important in our life is supporting NPP

42 40

Ananda Bopage Wednesday, 21 May 2025 01:07 PM

You are an NPP slave, but you are not the only one. Well the NPP slaves are becoming endangered species now.

5 18

Grace Wednesday, 21 May 2025 09:35 AM

Even when the employees had work, they were struggling to make ends meet. What will happen when the factory is closed.

0 33

Neel bandara Wednesday, 21 May 2025 11:48 AM

Yes, feel sorry about those people. Who are came from far away from the their home and living with minimum basic needs work with low salaries just enough to save some thing for their love ones. AND one of oldest company in FTZ. Sure the authorities can't meet the production cost that's way they has taken this decision. I don't think NPP can do anything. I am afraid the others companies also lead the take same steps what will happen?

0 15

OBSERVER OF ALL COMMENTS Wednesday, 21 May 2025 12:27 PM

NEEL AND TO TOP IT ALL THE LUNATIC TRUMP AND HIS TARIFFS HAVE MADE MATTERS FOR WORSE. WHO ARE THE LOCAL PARTNERS/MANAGEMENT TEAM TO THIS UK FUNDED PROJECT?.

2 4

Bernard Rozarius Wednesday, 21 May 2025 10:23 PM

Let's find a solution for these grieving workforce, they are on road with uncontrollable tears! NEXT will relocate it's activities elsewhere, but who's gonna rescue these innocent workers? Rulers, be productive in what you do and what you say. Before people find it's enough, show you live by your promises.

0 2

Zarook Wednesday, 21 May 2025 09:54 AM

National Pacha Pava no action Pacha talking only. What can you expect from pachayas who have not even run a tea shop?

26 33

Fact Check Wednesday, 21 May 2025 10:26 AM

What have the experienced (in looting and nepotism and corruption) done to our country since 1977. NPP trying its best to repair damage but the corrupt still pulling by the leg.

23 28

S P Wednesday, 21 May 2025 11:45 AM

So it’s the corrupt ready for all this!

1 6

S P Wednesday, 21 May 2025 12:00 PM

Have been wondering all these days. What’s ‘pava’? Sin?

0 1

Moda Zarook Wednesday, 21 May 2025 12:48 PM

Don't worry Aatupatty Zarook, We will face all the struggle.

3 3

Anura is clueless Wednesday, 21 May 2025 10:08 AM

IMF recommended a 30% tax for businesses and here is the result. There are plenty of countries that have below 20% taxes for businesses.

2 35

Observer Wednesday, 21 May 2025 10:30 AM

And who agreed to these conditions with IMF and as a sovereign country, we have to abide by these terms agreed by Seeya. New govt has to work within these terms, otherwise they will downgrade us to default status.

17 16

S P Wednesday, 21 May 2025 11:47 AM

So the new government is helpless. So what exactly is the reason for its existence?

2 17

Gunapala Wednesday, 21 May 2025 11:54 AM

Observer, why govt needs to work within agreed terms, NPP came on to power to change those IMF conditions.

1 24

RANIL THE ALL KNOWING AGREED AND NOW IT IS NOT WORTH THE PAPER/TERMS HE AGREED UPON. Wednesday, 21 May 2025 12:40 PM

SEEYA AGREED THINKING HE WAS GOING TO BE THE NEXT PRESIDENT, WITHOUT THINKING BEYOND HIS NOSE AS TO HOW IT WAS GOING TO ALL WORK OUT. SO IN SHORT ALL THE PRAISE HE WAS EXPECTING FOR SORTING OUT THE ECONOMICAL SITUATION OF THE COUNTRY BEFORE ANURA/NPP TOOK OVER IS ALL DEAD AS A DOOR NOB AND NO USE TO MAN WOMAN OR CHILD. HE PROBABLY AGREED KNOWING OR ADVISED BY THE STRINGS OPERATOR THAT DOUBTFUL EITHER ONE OF THEM MAY COME IN, SO DO IT TO GIVE ANURA/NPP ALL THE HEAVY LIFTING AND BLAME.

8 7

THE COMPANY MUST NOT BE GIVEN TAX PAYERS MONEY. TENDERS MUST BE CALLED FOR NEW INVESTORS AND IF THECOMPANY THAT WINS THE TENDER NEEDS SOME HELP , THE GOVT SHOULD CONSIDER GIVING THEM A LIMITED HELPING Wednesday, 21 May 2025 12:49 PM

WHEN THE GOVT CAME INTO POWER, ALL THE WIPED OUT AND THEIR STOOGES/SUPPORTERS WERE JUMPING UP SAYING HE WOULD CHANGE THE TERMS AGREED UPON AND WE WILL BE IN A FAR WORSE SITUATION AND NOW WHAT!!!. THE GOVT HAS ONLY ONE WAY TO BUTT IN AND THAT IS AGREEING TO RESOLVE BY EITHER FINDING A WAY TO PAY TOWARDS THE WORKERS WAGES AND OR GIVE A LUMP SUM OF TAX PAYERS MONEY TO THE COMPANY TO KEEP IT RUNNING. BUT AS WE SEE, EVEN IF MONEY IS PUMPED INTO THE COMPANY DOESN'T MEAN THEY CANNOT IN MONTHS OR YEARS TO COME DO THE SAME THING HOPING TO GET MORE MONEY PUMPED IN MY THE GOVT. AN INVESTIGATION MUST BE HAD TO FIND OUT DETAILS OF INCOME AND EXPENDITURE, WHO KNOWS THE LOCALS PARTY/S MAY HAVE DRAINED OUT THE COMPANY. CORRUPTION CAN OCCUR IN PRIVATE AND OR SEMI PRIVATE COMPANIES, IF DISHONEST PEOPLE OWN AND OR OPERATE COMPANIES AND OR A HONEST PERSON TURN INTO A DISHONEST PERSON FOR GREED OF BUILDING UP THEIR ASSETS.

5 2

gallbanis Wednesday, 21 May 2025 10:17 AM

I feel sorry for the workers and immediate family members a lot of them are from rural areas with financial burden on their back. What is the government doing? where is the development of the country new projects? new investments? Why cant the government initiate new projects from Uganda Money as promised? I hope this does not set a trend on other large factories.

2 28

S P Wednesday, 21 May 2025 11:56 AM

No they have a much important task! Going after the ‘sprats’ of the previous government (remand and release) and cleaning up (and looking for excuses) of the current one from their daily embarrassments.

2 16

Ranga Wednesday, 21 May 2025 10:37 AM

NEXT is actually not making money and they are heavily rely on online sales Also SL has higher energy cost and SL should build solar and wind to bring the cost down as soon as possible but also need batteries to stabilise the system On the tax front SL can't do anything as we need to bring the taxation around 18% GDP

0 17

Raj Wednesday, 21 May 2025 12:25 PM

NEXT Plc (UK) reported £800Mn profit after tax for year ended Jan 2024. They have 16 suppliers in Sri Lanka under Tier 2 and Tier 3 category. Not sure how many under Tier 1. This may be one of them.

0 4

Ranga Wednesday, 21 May 2025 01:28 PM

Yeah domestically but internally they aren't that good can't compete with Uniqlo and Zara etc

0 3

gallbanis Wednesday, 21 May 2025 10:44 AM

Please blame the previous governments for this as usual rather than seeking remedies!

5 36

S P Wednesday, 21 May 2025 12:01 PM

It’s already happening in a big way!

1 18

True History of SriLanka Wednesday, 21 May 2025 12:59 PM

Yes, it is the damage caused by Mahinda and Gota initially playing out billions from the working class, thereafter Ranil enforced Taxes and squeezed the neck of the workers. Now AKD promised something and not a single promise been carried out until now. Cost of living is sky racketing.... Oh my God.

2 5

Dr. Derrick Karunatillake Wednesday, 21 May 2025 01:18 PM

Mina Mahinda and Goma Gota are the main elements to bring the crisis to our nation and they are still living a Luxury life here in SriLanka. They are responsible for the down-fall of our Garment Industry. Anura did not do anything special only cheated the masses with his puppy's sitting in the Parliament. Ranil should come back not with the rogues but with SJB talented youngsters and run the show.

4 8

Sam Wednesday, 21 May 2025 10:48 AM

Its prodiminately based on the salary increases, impossible to bear for businesses who are on fixed contracted pricing for their goods. At least 12 months notice should be given to give companies the chance to factor in the increases to their contracts. Even then the likelyhood is closure, lets face it garments are chaeper made in Bangladesh and now they are just as good also.

0 12

Ganesh Wednesday, 21 May 2025 11:47 AM

Gloabby NEXT is on the decline. There global sales mostly online. Furthermore, it's cheaper for them to manufacture in places like Vietnam and Bangladesh than Sri Lanka given the increasing costs. Hopefully they National Pacha Party will not claim this one is also because of the previous governments.

4 14

COMOANY HAS NOT GONE INTO LIQUIDATION SO PROBABLY EXPECTING THE GOVT TO PUMP TAX PAYERS MONEY INTO THE COMPANY TO KEEP IT RUNNING. Wednesday, 21 May 2025 01:01 PM

WHAT HAS ANURA/NPP GOT TO DO WITH THE FALL OF NEXT!!!. THE GOVT HAS HARDLY SPENT 6 MONTHS IN GOVERNING AND SOME OF YOU THINK ANURA PUTS ON A SWITCH AND ALL ISSUES RESOLVED, NOOOOOOO. MOUTHING OFF IS NOT GOING TO RESOLVE THE ISSUES/PROBLEMS. TIME TO INVESTIGATE, MAYBE CORRUPTION HAS GONE ON IN THE COMPANY AND MONIES MOVED AROUND, LIKE THE CORRUPT POLITICIANS DID, NOTHING IS IMPOSSIBLE.

5 7

Sanga Wednesday, 21 May 2025 11:48 AM

They are tax fraudsters claiming garments as cut pieces

5 3

Do Not Do Wednesday, 21 May 2025 11:50 AM

God's punishment for Sri lanka for keep discriminating against Tamil people

20 22

Lk Wednesday, 21 May 2025 12:15 PM

This looks like political motivated and inspired more to tarnish the name of this NPP government? What a bad politics is this ?

22 3

B.M.D. Jinasena (Supervisor FTZ Katunayake) Wednesday, 21 May 2025 01:05 PM

Garment girls and boys voted for NPP and AKD are been cheated now. We don't want Potuwa rogues again, we don't want Ranil who joined with rogues to be in power. We cannot bear the high Taxes and the investors cannot meet the high cost of Electricity charges and Taxes. Sajith should get to a side and leave his seat to Harsha or Eran Wickramaratne, then they know how to run our country.

2 9

S P Wednesday, 21 May 2025 02:57 PM

Do you really believe this would ever happen in this ‘blessed’ country? The right person to get the leadership at the right time? How many times did this ever happen? Even when that may have happened a few times, it ended up not so well (if not in total disaster).

0 3

Ananda Bopage Wednesday, 21 May 2025 01:08 PM

You are an absolute NPP Slave. NPP salves are becoming endangered species now.

3 10

Berty Samarakoon (Attorney-at-Law) Wednesday, 21 May 2025 01:09 PM

Only Ranil with UNP/SJB talented youngsters can form a Govt. to re-establish the Garment Industries in SriLanka.

6 9

D.D.D. Wox Wednesday, 21 May 2025 01:13 PM

AKD and NPP did not do anything until now except increasing taxes and essential goods. We will form up an Aragalaya - Phase 2 very soon to chase AKD and his Govt.

1 10

" BRING IT ON " AND SEE IF DREAMING, HALUCINATING AND OR PEOPLE IN COMAS CAN STAND ON THEIR OWN TWO FEET. Wednesday, 21 May 2025 02:24 PM

DDD WOX, ARE YOU DREAMING, HALICINATING AND OR IN A INDUCED SELF INFLICTED COMA??. HARD TO SEE THE WIPED OUT PARTY'S FORMING A ARAGALAYA, WHEN THEY COULDN'T EVEN COME CLOSE TO THE SECOND BEST PARTY SJB TO GET INTO OPPOSITION.

2 1

Janaka Wednesday, 21 May 2025 02:46 PM

This issue has nothing to do with the UNP, NPP, or SLPP. Before making comments, it's important to check the facts. The factory in question had been running at a loss for many years. One of the main reasons was the ongoing disruptions caused by the unions, which consistently made unreasonable demands. Eventually, NEXT decided they had enough. It's worth noting that NEXT operates two other factories in Anamaduwa, which continue to run smoothly — primarily because there are no union-related disruptions there. So please, avoid jumping to conclusions without proper fact-checking.

0 3

Janak Wednesday, 21 May 2025 03:00 PM

NEXT is nearly bankrupt. It has been closing its stores in the UK. The closure in Sri Lanka is more related to that. Just Google!

0 4

Kukku Wednesday, 21 May 2025 03:18 PM

You can blame the politicians all you want but this is kinda the natural progression. Garment industry is for the poorest of countries with law wages and minimum expenses. Or you have to have high efficiency and great infrastructure. Sri Lanka has neither, hence the owners will move the factory to a cheaper or a more efficient country. Simple as that.

0 5

Yohan Wednesday, 21 May 2025 03:22 PM

Great work by Pacha Kota and Pacha Party. They are very good at closing down factories. Their trade unions closed down many factories in past including famous ice cream and shoe industries..

3 4

nizam Wednesday, 21 May 2025 03:47 PM

Apart from apparel our tea is also on the decline. We were amongst the top 2 exporters until the first quarter of 25 and suddenly we are pushed down. The reasons are similar to what is happening to the garment industry. High cost, frequent strikes amongst employees, High tax forcing employers to restrict, low production and the inability to sustain, Next may have closed 1 tier from the 3 they have in SL for these reasons as UK did show a profit early this year even though online sales dropped. Hopefully they will absorb the workers to the other two tiers, this is where the authorities should intervene. Nothing so far. There are many small industries attached to both these industries as well and they will decline too if immediate action is not implemented. So much to do not blame or just keep talking to change the focus. Given a task do it or ... ....

0 2

Dr Tissa Fernando Wednesday, 21 May 2025 04:52 PM

Another big achievement for the No Plan Pacha party. Rice, salt, electricity, now garments factories. May be their target is to hand all these to diaspora slowly.

0 2

Lal Wednesday, 21 May 2025 05:28 PM

Very sad news. This is how multinationals operate. They go to places that offer better deals. Yes, Sri Lanka is becoming unattractive for FDIs, but it's unfair to blame the NPP government because most problems are a result of bad handlings of previous governments. However, NPP should know by now how fix this situation.

0 1

Teetotal (Aristotal's Bro.) Wednesday, 21 May 2025 05:32 PM

untermention.

0 0

Sammy Wednesday, 21 May 2025 06:38 PM

The garment industry bubble has been bursting for some time now, after the boom since the late 1970s. Lack of vision in political leadership. Only looting. Doest current Govt. have the competence

0 0

Mahi Wednesday, 21 May 2025 07:36 PM

Whatever supposed to happen has happened. Whatever supposed to happen will also happen. You and me are part of the game. We manifest the problem, we manifest the solution together with another set of problems. It’s the nature of the existence. Bliss when you close your eyes.

1 0

Dilakshan Senevirathne Wednesday, 21 May 2025 10:39 PM

Due to visionary leadership of brother Anura, former Lankans who are doing well abroad are going to invest billions into our economy immediately. The country will flourish before anyone could blink an eye. Their focus would be north, east, free trade zones and port city areas. Those investors will create plenty of jobs and since we have a MOU with India , we can get skilled workers from there too.

1 0

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