NEXT closure highlights urgent need for cost reforms – JAAF

Sri Lanka's apex apparel body has sounded the alarm on the growing burden of operational costs, calling for urgent, industry-wide collaboration following the sudden closure of NEXT's Katunayake plant, one of the largest single-factory shutdowns in recent times.

- By SHABIYA ALI AHLAM

"This development highlights the need for urgent, collaborative efforts to address cost pressures and safeguard long-term industry viability," Joint Apparel Association Forum (JAAF) Secretary General Yohan Lawrence told Mirror Business.

The Forum acknowledged NEXT'S commitment to legally compensate affected employees and, subject to an agreement, to enhance the statutory severance package.

NEXT cited the "high operational costs of Katunayake" as the core reason for its decision, confirming it will continue operating its other two production facilities in Andigama and Nawagaththegama. The product development plants within the Katunayake Free Trade Zone will also remain open, albeit with reduced staffing, while Colombo's sourcing office is to remain unaffected.