Government authorities have moved to calm concerns about the apparel industry's stability after Hela Apparel Holdings PLC and affiliated companies filed for court-ordered winding up, emphasizing that worker protections are in place through a prior restructuring.
Sri Lanka's Deputy Minister of Industry Chathuranga Abeysinghe has sought to reassure stakeholders about the health of the nation's apparel sector, which has recently faced uncertainty following legal filings by Hela Apparel Holdings PLC. In a social media statement, Abeysinghe characterized the industry as fundamentally resilient, having successfully navigated previous challenges including the COVID-19 pandemic and Sri Lanka's recent economic downturn.
Hela Apparel Holdings PLC, together with Hela Clothing Ltd. and Foundation Garments Ltd., has applied to the Commercial High Court for court-ordered winding up due to sustained liquidity constraints. However, the Board of Investment has moved to limit the impact on workers, noting that employees of Hela Clothing (Pvt) Ltd and Foundation Garments (Pvt) Ltd had already been transferred to Emerald Clothing (Pvt) Ltd under a restructuring initiative completed before the winding-up applications were submitted.
According to the BOI, approximately 3,674 workers were absorbed into Emerald Clothing across two phases completed on May 1 and June 1, 2026. The transferred workforce comprises 251 executives, 393 administrative staff members, and 3,030 team members. The BOI stated that all transferred employees retained their positions with continuity of service and maintained their existing employment terms and conditions.
The Board of Investment indicated it has overseen the restructuring through its Industrial Relations Department and intends to maintain engagement with Emerald Clothing and other relevant parties to protect employee interests and monitor workplace conditions going forward.
