Special discussion held on sudden closure of ‘NEXT’ apparel factory in Katunayake
May 28, 2025 04:26 pm
A special discussion regarding the sudden closure of the ‘NEXT’ apparel factory located within the Free Trade Zone (FTZ) in Katunayake was held, with the intervention of Deputy Minister of Labour Mahinda Jayasinghe.
The management of the factory, trade union representatives, and officials from the Board of Investment of Sri Lanka participated in the discussion, which was held at the Labour Ministry premises.
Although the management and trade union representatives had previously held separate discussions with the Deputy Minister regarding the factory’s closure, this was the first time both parties engaged in a discussion collectively.
The discussion focused on the decision to close down the factory without prior notice. It was emphasized that such decisions should be communicated to employees well in advance.
Trade union representatives expressed concerns that the management had failed to adhere to the terms of the collective agreement. In response, the management stated that they do not recognize the collective agreement as a legally binding document.
The management of the ‘NEXT’ factory further stated that they are prepared to provide compensation to affected employees that exceeds the minimum requirements set by labour law.
They explained that the closure was due to significant financial losses over the past few years, primarily caused by high operational costs.
Accordingly, the management stated that they had no choice but to shut down only the Katunayake plant, stressing that it was a difficult but necessary business decision.
The Deputy Minister then inquired about the steps to be taken to resolve the issue after hearing both sides.
In response, the Commissioner General of Labour, Nadeeka Wataliyadda, stated that both employer and representatives of the employees would be summoned on 30 May, and appropriate action would be taken in accordance with labour regulations.
Several officials attended the discussion, including the Secretary to the Ministry of Labour, S.M. Piyatissa, Katunayake Zone Director Ranjan Sibera, and others.
