The decision follows a comprehensive review by the Hela Apparel’s Board, which determined that all restructuring and funding options had been exhausted.
In an announcement on 5 August to the Colombo Stock Exchange, Hela Apparel said its Board had resolved the previous day to seek a court-ordered winding up for Hela Apparel and subsidiaries Hela Clothing and Foundation Garments.
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The company cited a detailed evaluation of its realisable assets, liabilities, anticipated cash flows and obligations to creditors, concluding that operations could no longer be sustained.
Headquartered in Colombo, Hela Apparel provides supply chain solutions in the intimate, active and children’s clothing segments for global brands.
The group operates a network of 10 manufacturing sites across four countries and employs more than 17,000 staff.
Financial reports for the nine months ending 31 December 2025 revealed a steep decline in revenue and profitability across the group.
Turnover fell to SLRs43.95bn ($129.17m) from SLRs61.55bn in the same period in 2024. Gross profit more than halved to SLRs4.27bn from SLRs8.23bn, largely due to tighter operating margins.
Its operating losses widened to SLRs4.81bn, up from SLRs3.58bn the previous year. The net loss for the period reached SLRs7.59bn, a significant deterioration from SLRs6.46bn in 2024.
Hela Apparel stated that its directors reached the unanimous conclusion to proceed with winding-up only after all practical restructuring and funding options failed.
Liquidation applications for both subsidiaries were submitted alongside the parent company’s filing.
The Commercial High Court is now expected to consider the petitions, determining next steps for the company and its subsidiaries under the Companies Act No. 7 of 2007.
In 2022, Hela Apparel was awarded certification by The Sustainable Future Group for quantification and reporting of greenhouse gas emissions across the group. The company also secured US$14m in funding to develop its East African manufacturing operations in 2023.
