Sinotex (Lanka) Ltd, a 27 year-old garments factory and among the oldest at the Katunayake IPZ that has announced its closure, in a press notice this week said 98% of the workforce collected their compensation and statutory payments between January 20-23.
The company says it would discuss with the Labour Commissioner with regard to the payment to the remaining employees.
The compensation payment has helped the company to fulfill the legal and social obligations following the closure of factory, the company says in a statement. It says the company has informed the Labour Commissioner and BOI Director of the Katunayake IPZ of its decision to close down the factory and to lawfully terminate the employment of their employees with legal compensation and statutory payments.
The management decided to close down the factory with effect from January 14 due to the reduction of export orders from the US market last year, the company says.