MAS Holdings has announced a strategic shift to enhance its fabric manufacturing capabilities in response to a sustained downturn in global apparel demand. As part of this strategy, the company plans to repurpose its Methliya facility at the MAS Fabric Park.
In a statement to employees on February 19, 2026, MAS Holdings revealed that the Methliya premises will be converted to accommodate knitting, dyeing, and finishing operations. This transition leverages the site’s infrastructure for wet processing within the Thulhiriya industrial zone. Consequently, garment manufacturing at this plant will be discontinued, with the production capacity being reallocated to other MAS apparel factories in Sri Lanka.
The company has assured that all employees at the Methliya facility will be offered opportunities to transfer to other MAS plants, either within Sri Lanka or internationally, including in Jordan. As an incentive for relocation, a three-month salary package will be provided. For those who choose not to accept alternative roles, compensation packages exceeding statutory requirements will be available, along with the full settlement of dues and wages through the end of April, including the April bonus.
MAS Holdings stated that the transition is being executed in full compliance with Sri Lankan labor laws and has received the necessary approvals from relevant authorities. The company has engaged with staff through a structured process focused on fairness and transparency.
This move occurs amidst a contraction in the global apparel industry, with declining demand in critical export markets such as the United States, European Union, and United Kingdom impacting order volumes across major manufacturing hubs, including Sri Lanka. MAS Holdings has been reorganizing its operations to ensure long-term stability, which has included recent closures in Haiti and the Dominican Republic.
The company emphasized that operations at all other MAS facilities are continuing as usual. It reiterated that any future decisions regarding rightsizing will be communicated directly to employees through official channels, cautioning that misinformation could jeopardize operational stability and customer confidence.
