Are 26,000 Jobs at Risk as MAS Holdings Moves to Shut Factories?

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From time to time, false claims and misleading posts circulate on social media suggesting that the MAS Holdings group is leaving the country, shutting down operations, or abandoning its workforce.

In this context, below is our fact-check regarding recent social media posts about the Methliya factory, which handles MAS’s garment production operations, and about MAS Holdings itself.

Social Media Posts :

Several social media posts have been circulating, claiming that MAS Holdings has already planned to close multiple factories and implement massive layoffs. Some of these posts specifically mentioned that as many as 26,000 employees would be affected.

Facebook | Archived Link

Facebook | Archived Link

Facebook | Archived Link

Accordingly, we proceeded to check the authenticity of these reports.

Fact Check :

Mainstream media reported that the management of MAS Holdings has decided to halt garment production operations at the Methliya factory, one of the multi-purpose plants located within the MAS Fabric Park (MFP) in Thulhiriya in this way.

However, none of these reports indicated that 26,000 employees at the Methliya factory would be laid off, nor that the Methliya factory itself would be closed, or that MAS Holdings has decided to shut down two of its factories.

To verify this, we contacted a senior official at MAS Holdings.

He explained that on February 19, 2026, MAS management informed Methliya factory employees about the company’s future plans. Due to a long-term slowdown in the garment sector, the factory will stop producing garments and will instead be used for fabric production.

The decision considered the factory’s location and facilities. In the future, the Methliya site will be used to increase MAS’s fabric output through processes like weaving, dyeing, and finishing. The goal is to keep the company stable and reduce any long-term impact on the group from the downturn in the garment sector.

We also inquired about the impact of this operational change on the employees of the Methliya factory and about the number of workers currently employed there.

We were informed that the Methliya facility employed around 2,200 workers. All employees have been given the option to either transfer to another MAS factory in Sri Lanka or to work at a MAS facility in Jordan, depending on their preference. Employees who agree to transfer to another facility are also offered an additional incentive equivalent to three months’ salary.

If any employee chooses not to accept the alternative employment options offered by MAS, or decides to resign for personal reasons, the company has arranged to provide compensation exceeding the amount required under Sri Lankan law.

In addition to this special compensation, all statutory dues will be fully paid. Employees will also receive their full salary up to the end of April, including the April bonus.

He further stated that all these steps are being carried out in compliance with Sri Lankan labour laws and regulatory requirements, with the necessary approvals from relevant authorities. Throughout the process, the company has aimed to act transparently and fairly towards its employees.

He emphasized that the purpose of these measures is not simply to end the company’s legal obligations, but to properly support employees during this transition period.

Accordingly, employees of the Methliya factory will be redirected to other MAS factories within the group.

We also inquired about the reasons behind the decision to use the Methliya facility for fabric production instead of garment manufacturing.

They explained that the global garment industry is shrinking, and demand in major export markets is falling. Slowdowns in key markets like the United States, the European Union, and the United Kingdom, along with tariffs and changing global policies, are affecting garment production worldwide.

This has also reduced orders for top garment exporting countries such as Vietnam, China, and Bangladesh, while demand for garments from Sri Lanka has stayed flat.

In this context, to ensure long term stability, MAS Holdings has had to continuously restructure its operations. As a recent example, the company had to close MAS operations in Haiti and the Dominican Republic to maintain overall sustainability.

Are two MAS Holdings factories actually being closed?

Currently, all other MAS operations are running normally. The company also maintains that any changes or new developments, whether local or international, are always communicated accurately and through proper channels.

The senior official also assured us that maintaining the stability of their operations is a top priority for the group, as it allows us to reliably fulfill customer orders. The spread of unverified or false information undermines trust in Sri Lanka in their company and creates unnecessary doubt about the garment industry.

Methliya factory employees

Regarding the Methliya factory employees, we spoke with several former staff members to verify the support provided. They confirmed that MAS had offered the assistance as described, and that around 2,000 employees were working there. However, the claims on social media suggesting a massive layoff affecting tens of thousands of employees are not true.

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