MAS Holdings has announced plans to repurpose its Methliya facility at the MAS Fabric Park as part of a strategic shift to strengthen fabric manufacturing capabilities amid a prolonged downturn in global apparel demand.

In an announcement made to employees on 19 February 2026, the company said the Methliya premises will be converted to support knitting, dyeing and finishing operations, leveraging the site’s infrastructure for wet processing within the Thulhiriya industrial zone. As a result, garment manufacturing at the plant will cease, with production capacity redistributed to other MAS apparel factories in Sri Lanka.

The company stated that all employees at the Methliya facility have been offered opportunities to transfer to other MAS plants either locally or overseas, including in Jordan, along with a three-month salary incentive for relocation. Employees who opt not to accept alternative roles will receive compensation packages exceeding statutory requirements, in addition to full settlement of dues and wages through end-April, including the April bonus.

MAS said the transition is being carried out in full compliance with Sri Lankan labour laws and with approvals from relevant authorities, adding that staff engagement has been conducted through a structured process aimed at fairness and transparency.

The move comes against the backdrop of a contraction in the global apparel industry, with weakening demand in key export markets such as the United States, European Union and United Kingdom affecting order volumes across major manufacturing hubs, including Sri Lanka. MAS noted it has been reorganising operations to ensure long-term stability, citing recent closures in Haiti and the Dominican Republic.

The company emphasised that operations at all other MAS facilities continue as normal and reiterated that any future decisions regarding rightsizing will be communicated directly to employees through official channels, warning that misinformation could undermine operational stability and customer confidence.