A total of 3,674 workers from Hela Clothing and Foundation Garments had already moved to Emerald Clothing (Pvt) Ltd before the companies filed applications seeking court-ordered winding-up, the Board of Investment of Sri Lanka (BOI) said.
The BOI said the transfer means the recent winding-up developments do not affect the employment of these workers.
All transferred employees have continued working at Emerald Clothing with continuity of service. Their employment continues under the applicable terms and conditions.
The clarification follows recent reports that Hela Apparel Holdings PLC, Hela Clothing Ltd. and Foundation Garments Ltd. had filed applications in the Commercial High Court seeking winding-up orders.
The companies cited ongoing liquidity problems in their applications.
Workers transferred in two phases
Emerald Clothing confirmed the transfer to the BOI in an official letter.
The first phase took effect on May 1, 2026. It involved 2,504 employees from the Palapathwela and Thihariya facilities and the Emerald Head Office.
The second phase took effect on June 1, 2026. A further 1,170 employees moved from the Naula and Ukuwela facilities and the Head Office.
The total workforce transferred included 251 executives, 393 staff members and 3,030 team members.
The BOI said it facilitated and monitored the restructuring through its Industrial Relations Department.
The Board will continue to work with Emerald Clothing and other relevant parties. It will also monitor employment conditions following the transfer.
The BOI said its focus remains on protecting the interests of workers within its portfolio of approved enterprises.
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Last modified: August 11, 2026
