MAS Holdings to repurpose Methliya plant

MAS Holdings announced the cessation of garment manufacturing at its Methliya plant in Thulhiriya, opting instead to repurpose the facility exclusively for fabric production. The company stated that the site will now focus on knitting, dyeing, and finishing to enhance its upstream textile capacity.

According to the official statement, all other group operations remain normal. The move aims to mitigate long-term impacts from the global apparel market contraction by redistributing garment production capacity to other MAS facilities across Sri Lanka.

Key details regarding the transition include:

• Employee Options: Approximately 2,200 affected staff members can choose to transfer to other MAS locations within Sri Lanka or to the group’s facility in Jordan.


• Financial Incentives: The company is offering a three-month salary incentive as a relocation benefit.


• Compensation: For those who choose to resign, MAS stated it will provide compensation exceeding the legal minimum requirements.

While MAS maintains the facility is being repurposed to strengthen its supply chain, the Podujana Pragathishili Sevaka Sangamaya alleged that the factory was completely shut down four days ago. Industry reports suggest the decision is also influenced by shifting trade policies and increased tariffs in key export markets like the US.