MAS closes down Thulhiriya factory employing 1,400 workers

2026-02-20 - 04:27

MAS Holdings Group, owned by the Amalean family, has decided to close its MAS Kreeda Methliya facility located at the MAS Fabric Park in Thulhiriya, effective yesterday (Feb. 19). The decision is reportedly linked to a decline in orders following increased export tariff rates imposed by U.S. President Donald Trump. The Thulhiriya facility primarily manufactured apparel for export to European and U.S. markets. The tariff increases are said to have raised operational costs for overseas buyers, leading to reduced orders and ultimately the closure. At the time of closure, about 1,400 employees were working at the facility. A portion of the workforce has been reassigned to other company branches, while another group will receive compensation exceeding the government-approved statutory redundancy payment. Affected employees are expected to receive 03 months’ salary along with the April bonus payment. MAS Holdings has around 30 facilities islandwide while also maintaining overseas operations in India, Bangladesh, Indonesia, and Jordan. Employees from the closed facility may be offered transfers to these overseas locations, subject to their consent, reports say. Meanwhile, reports also indicate there are plans to shift the entire operation to India. Currently, MAS operates a total of 53 facilities globally, including 38 factories in Sri Lanka. The company is said to contribute nearly USD 02 billion out of Sri Lanka’s annual apparel export revenue of around USD 05 billion. Meanwhile, industry experts suggest that workforce reductions and factory closures are part of a broader strategic restructuring effort, including overseas expansion and increased adoption of Artificial Intelligence (AI) in the manufacturing processes. MAS Holdings was founded by brothers Mahesh, Ajay, and Sharad Amalean. Related News: Minuwangoda Brandix InQube to be closed