Mila Fashion (Pvt) Ltd has clarified that it has not ceased operations, following recent media reports concerning its Welioya facility. The company stated that it is currently carrying out a temporary and structured operational consolidation as part of a broader business continuity measure, in response to global market conditions affecting the apparel sector.

The company confirmed that the process does not amount to a closure of business, and that no employee has been unlawfully terminated or left without support. According to Mila Fashion, employees affected by the temporary restructuring have been reassigned to alternative employment opportunities within affiliated group companies, with continuity of employment and uninterrupted salary payments.

Mila Fashion further noted that the transition has been carried out in compliance with Sri Lankan labour regulations, including the Termination of Employment of Workmen (Special Provisions) Act No. 45 of 1971.

As part of its employee welfare measures, the company has arranged transport services to and from designated locations, which was operational from last Friday onwards. It has also supported employees in identifying safe accommodation and has extended meal support to include breakfast, lunch, and dinner free of charge for relocating employees.

In addition, Mila Fashion has introduced a structured orientation and awareness programme to help employees familiarise themselves with their new work environment, surrounding area, and essential services.

The company rejects claims that workers had lost their livelihoods overnight or that employees had not been given due notice. It stated that employees were informed of the operational adjustments, provided with reassignment options, and supported through formal HR-led processes.

Mila Fashion said its priority is to balance operational sustainability with employee protection during a challenging period for the apparel sector. The company reiterated its commitment to complying with all applicable labour laws, upholding employee welfare, and maintaining responsible business practices.

The company also called on media institutions to verify information before publication, particularly when reporting on matters that may affect employees, stakeholders, and the reputation of organisations operating within legal and ethical frameworks.

Mila Fashion reaffirmed that its operations continue under a temporary restructuring framework, and that it remains focused on stabilising operations while safeguarding the wellbeing of its employees and long-term stakeholders.