May 21, Colombo (LNW): In a move that has shocked both workers and trade unions, the NEXT garment factory located in the Katunayake Free Trade Zone has abruptly ceased operations, reportedly without any prior warning to its workforce.
Over 1,400 employees have been left without jobs or explanations, raising serious concerns about corporate responsibility, legal protections, and economic stability in Sri Lanka’s critical garment sector.
The factory premises were sealed earlier this week, with only private security personnel now stationed at the gates, according to initial reports. Workers arriving for duty were reportedly turned away, with no official communication from the company regarding the shutdown, severance packages, or future job placements.
“This was completely unexpected. We came to work and found the gates locked,” said one long-serving employee on the condition of anonymity. “We have families, loans, and no answers. This is inhumane.”
Trade unions and labour rights groups have condemned the manner of the closure, calling it a gross violation of labour laws and ethical standards. The Free Trade Zones & General Services Employees Union (FTZ&GSEU) has demanded immediate government intervention to investigate the circumstances and ensure that the rights of the workers are protected.
The sudden and opaque nature of this shutdown has called that reputation into question, prompting demands for accountability not only from the company but also from its international partners.
The garment and apparel industry is one of Sri Lanka’s largest foreign exchange earners, employing hundreds of thousands, primarily women, across various Export Processing Zones (EPZs).
A disruption on this scale could have ripple effects across the industry — undermining investor confidence and exacerbating social vulnerabilities at a time when the country is still grappling with the aftermath of an economic crisis, labour experts pointed out.
