MAS Holdings to relocate Thurulie operations after cyclone damage

MAS Holdings yesterday said it would relocate the manufacturing operations from its Thurulie facility in Thulhiriya to nearby plants, following the damage caused by Cyclone Ditwah in late 2025.

The company, one of Sri Lanka’s largest apparel manufacturers, said in a statement that the technical assessments indicated the long-term viability of the Thurulie plant had been affected by the cyclone-related damage to the machinery and infrastructure. 

The site has experienced multiple flood events in the past and is at high risk of recurrence, due to its low-lying location near the surrounding water bodies.

“Continuing operations under such conditions would expose the employees and operations to repeated disruption and preventable risk,” MAS said.

The company said it is offering all 2,100 Thurulie employees relocation options to other MAS facilities. Over 500 employees have already moved temporarily, while the remaining 1,600 employees are being offered a three-month salary incentive to relocate. 

MAS added that the employees unable to transfer, due to personal circumstances, would receive a compensation package exceeding the statutory requirements.

MAS said the relocation process is being carried out in compliance with the labour regulations and with the approvals from the relevant authorities. Production at its other facilities continues as usual and the company aims to maintain operational stability for its global customers.

The Thurulie facility, which received the LEED Platinum certification, was the world’s first purpose-built green apparel factory. At the time of its construction, it used 40 percent less energy and 50 percent less water than the conventional factories and hosted MAS’ first roof-mounted solar panels in 2008.

MAS said it is “saddened” that the future climate-related risks prevent safe continuation of operations at the site.