5,000 workers lose jobs over apparel factory closure!



About 5,000 employees have lost employment opportunities due to the temporary closure of nearly 10 garment factories in the past few months.

Three factories of a major clothing company, two factories each of two similar companies and factories of three other companies have been temporarily closed in Koggala, Meepe, Matale, Waturagama and Anuradhapura.

It was reported that some employees have been paid compensation while some organizations that temporarily closed their operations have given leave to the employees along with the basic salary.

Nearly 300,000 people work in 135 factories in 15 investment zones under the Board of Investment and 326 other registered factories.

Also, about 900,000 people depend on indirect income ways generated from these factories.

When questioned about the situation, Yohan Leverance, Chairman of the Garment Factory Owners’ Forum, said that this situation has arisen due to the decrease in demand from the main buyers of clothing, the USA and the European Union.

He said that the current orders are enough for another two to three months and expressed confidence that the situation will improve after September.

He said that this is not a situation that has affected only Sri Lanka, but the garment factories of countries like Bangladesh, Vietnam, Cambodia and China have also been severely affected.


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