The Board of Investment of Sri Lanka (BOI) has confirmed that the employment of workers formerly attached to Hela Clothing and Foundation Garments remains secure following their full absorption into Emerald Clothing under a group restructuring exercise completed ahead of recent developments concerning Hela Apparel Holdings.

Recent media reports noted that Hela Apparel Holdings, together with Hela Clothing and Foundation Garments, had filed applications in the Commercial High Court seeking court-ordered winding up, citing sustained liquidity constraints.

The BOI clarified that these developments do not affect the livelihoods of the employees concerned, as their transfer to Emerald Clothing was formally completed before the winding-up applications were filed.

According to official confirmation issued by Emerald Clothing to the BOI, a total of 3,674 employees, comprising 251 executives, 393 staff members and 3,030 team members, were transferred and absorbed into Emerald Clothing in two phases.

The first phase, effective May 1, 2026, saw 2,504 employees transferred from the Palapathwela and Thihariya facilities and the Emerald Head Office. The second phase, effective June 1, 2026, involved a further 1,170 employees from the Naula and Ukuwela facilities and the Head Office.

The confirmation letter stated that all transferred employees have continued their employment with Emerald Clothing with continuity of service, under the applicable terms and conditions of employment.

The BOI, which facilitated and monitored the restructuring process through its Industrial Relations Department, reiterated its commitment to safeguarding worker interests within its portfolio of approved enterprises.

The Board will continue to engage with Emerald Clothing and relevant stakeholders to ensure a smooth transition and monitor employment conditions in the future.