ECONOMYNEXT – MAS Holdings is restructuring operations at its Thulhiriya facility to focus on fabric manufacturing, chairman of Sri Lanka’s Export Development Board (EDB) Mangala Wijesinghe said addressing concerns about its closure.
The restructuring specifically concerns the Methliya factory, which produces both fabric and apparel.
“Following high-level discussions held yesterday with their senior management, they informed us that these changes are part of a strategic expansion plan designed to maximize profitability and align with their long-term goals,” Wijesinghe told reporters.
Under the new plan, apparel production currently handled at the Methliya facility will be absorbed by other factories within the group’s network, he said.
“This move allows them to further develop and expand the fabric production side within the Methliya facility itself.”
This transition is intended to allow the Thulhiriya site to scale up its fabric production capabilities, leveraging the specialized infrastructure available at the location.
Addressing concerns regarding the impact on the workforce, Wijesinghe assured that the company does not intend to reduce its headcount.
“I want to address the concerns regarding the workforce. The management has clearly stated that they have no intention of laying off any employees,” Wijesinghe said.
Employees at the facility are being offered multiple transition paths, including relocation to any of MAS Holdings’ other 40 factories across the island.
The company is also providing opportunities for staff to move to its overseas manufacturing bases.
For those who do not wish to relocate, a Voluntary Retirement Scheme (VRS) with a settled payment has been introduced as an alternative.
“As the Chairman and CEO of the Export Development Board, I want to highlight the significant role that MAS Holdings plays within the apparel sector. Their contribution is vital to our national economy and our overall export progress.”
MAS Holdings operates more than 40 factories across Sri Lanka, providing employment to a workforce of over 90,000 people.
“They have reaffirmed that these internal shifts will not lead to a decline in export progress. In fact, they anticipate that these strategic moves will lead to further growth in their export performance.” (Colombo/Feb24/2026)