BREAKING: Sudden Closure of Next Manufacturing Pvt Ltd in Katunayake Free Trade Zone Leaves 1,461 Workers Jobless

In a shocking and heartbreaking turn of events, Next Manufacturing Pvt Ltd, a leading garment exporter operating inside the Katunayake Free Trade Zone, has abruptly shut down its factory without any prior notice, leaving 1,461 workers jobless and devastated overnight.

The factory, located in Phase I of the zone, closed its doors on 19th May 2025. Workers, many of whom have dedicated years of their lives to this company were working as usual until 6 PM that evening. Just two hours later, around 8 PM, they received a WhatsApp message stating that the company would be permanently closed and sealed starting the next day.

This closure came without warning. Workers say they were working late nights and even over the previous weekend to complete shipments, expecting nothing but another regular day at work. One long-serving employee, a single mother, shared through tears:

“All I had was Rs. 4,000. I borrowed Rs. 2,500 today to buy groceries. I even got some chicken to cook for my kids tomorrow. I filled in the salary advance form yesterday. Now I have no job, no money, and nowhere to go. I never thought this company we gave our lives to would do this to us.”

This isn’t just the loss of employment, it’s the sudden collapse of stability for over 1,400 families. Workers say there was no indication or official communication of a possible closure.

While the company has shared some information about compensation, the emotional and economic impact runs deep. One worker stated:

“Firing workers without warning is like taking away their ability to live. Compensation helps for a few days but what about after that? We have children to raise, rent to pay, and no time to find another job.”

Although companies may legally close operations, doing so without due notice, support, or transparency is both unethical and inhumane. This kind of sudden shutdown causes enormous psychological distress, especially among women, young workers, and breadwinners, many of whom are already living on the margins in Sri Lanka’s current economic climate.

There is growing concern that the situation may escalate unless authorities take immediate action. The Board of Investment and the Government of Sri Lanka must step in to investigate, negotiate with the investor, and put policies in place to ensure that factory closures in Export Processing Zones happen with fairness, notice, and dignity.

At this difficult time, Revolutionary Existence for Human Development (RED) is standing in solidarity with the affected workers. Through our Help Desk, we are offering information, guidance, and emotional support as part of our social responsibility.

However, as a small nonprofit organization, RED does not have the capacity to meet the full social and mental health needs of 1,461 workers. Therefore, we appeal urgently to all civil society organizations, labor rights groups – Unions, mental health professionals, and the Government to come together and support these sisters and brothers in this moment of crisis.

These are not just factory workers. These are human beings with families, dreams, and dignity who now need our collective compassion and solidarity more than ever.