ECONOMYNEXT – The closure of the sewing division of NEXT Manufacturing, a foreign owned apparel factory, in Katunayake seems to be linked to a collective agreement which is not found in other factories, Industries Minister Sunil Handunetti said.
The entire apparel industry in not about to close down, he said.
“They have closed the sewing division because it is not profitable,” Minister Handunetti told parliament.
“There is a problem there. There is a collective agreement with a certain union. This particular collective agreement with the union is not found in all factories in the garment industries. This is something they have devised.”
Minister Handunetti said he will inquire about the required procedures and approvals from the Labour Ministry and the BOI the compensation.
“They have closed it because one division is unprofitable,” Minister Handunetti said.
“This is a problem. We have to find a solution. Did they talk with the government? As the Enterprise Minister or Industries Minister they did not talk to me.
“I did not have second sight to know that a division was unprofitable.”
Two other factories of NEXT outside of the zone were operating, he said.
RELATED :
NEXT apparel factory in Sri Lanka to close amid high costs
Sri Lanka’s NEXT workers seek labour consultation, cost explanation over closure
Industry sources indicated that the wages costs of the plant may have been pushed up to uncompetitive levels, due to pressure from activism. (Colombo/May22/2025)
