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.
