More than 1,400 employees of the NEXT garment factory in the Katunayake Free Trade Zone were abruptly left jobless after the company announced its immediate closure via a WhatsApp message late on May 19.

The factory, operational for nearly 40 years, cited rising costs and persistent financial losses as reasons for shutting down. A company statement revealed that 1,416 out of 2,825 workers were affected, while employees in other divisions would retain their jobs.

Workers were offered a severance package of two months’ salary, but trade unions argue the closure breached labor agreements and was executed without proper notice.

“This is an unjust dismissal—workers deserve fair treatment and consultation,” said a union representative, demanding government intervention.

The sudden shutdown has sparked protests, with employees calling for legal action and better compensation. The Ministry of Labour is expected to review the case amid growing concerns over worker rights in Sri Lanka’s export sector.

President Anura Kumara Disanayake has instructed relevant authorities to establish a committee under the Presidential Secretariat to investigate allegations of corruption and mismanagement at SriLankan Airlines. 

The directive was issued during a four-hour meeting held today (May 20) at the Presidential Secretariat, attended by the airline’s Board of Directors and representatives from all affiliated trade unions.  

The discussions aimed to secure the collective commitment of stakeholders to uphold the government’s decision to retain state ownership of the airline, eliminate losses and steer it toward recovery. President Disanayake stressed that rebuilding SriLankan Airlines would be impossible without unified efforts, adding that the institution must develop its internal capacity to rebuild itself.  

Asserting the government’s role as the political authority, the President reiterated its commitment to making “all necessary sacrifices” to rescue Sri Lanka from its economic crisis. He emphasised that reviving the national carrier is the shared responsibility of its entire workforce.  

Highlighting the allocation of Rs. 20 billion from the budget for SriLankan Airlines, the President underscored the need for stringent fiscal accountability, noting that these funds, drawn from public taxes, must be utilised efficiently. He also welcomed the “positive trend” of April’s operational revenue surpassing targets.  

New proposals have been presented by the Board of Directors to transform SriLankan Airlines, which operates under government ownership, into a profitable entity. In line with these proposals, the trade union representatives who participated in the discussions stated before the President that they would extend their full support to achieving these goals. 

Key Attendees at the meeting included: Mr. Sarath Ganegoda, Chairman of SriLankan Airlines and members of the Board of Directors, representatives from trade unions, including: Flight Attendants’ Union (FAU), the Airline Pilots’ Guild of Sri Lanka (ALPGSL), the Association of Licensed Aircraft Engineers (ALAE), the SriLankan Airlines Aircraft Technicians’ Association (SLAATA), and the Sri Lanka Nidhahas Sewaka Sangamaya (SLNSS), the Inter-Company Employees’ Union (ICEU) and the SriLankan Airlines Executive Association (EASLA). 

(President’s Media Division)

Several new appointments have been made by Anura Kumara Disanayake.

Accordingly, the appointments made are as follows : 

Chief Innovation Officer of National Innovation Agency – Dr. Muditha Darshana Senarath Yapa Appointed 

New Secretary to the Ministry of Fisheries – Dr. Kolitha Kamal Jinadasa

Secretary to the Ministry of Rural Development, Social Security and Community Empowerment – Sampath Manthrinayake

Chief Secretary of the Northern Province – Ms. Thanuja Murugesan