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Tensions Rise at Weligama Garment Factory Over Unpaid Bonuses Amid U.S. Tariff Impact

April 9, 2025
in News
Reading Time: 6 mins read
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Tensions Rise at Weligama Garment Factory Over Unpaid Bonuses Amid U.S. Tariff Impact
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A tense situation unfolded at a private garment factory in Udukawa, Weligama, Matara, after the factory head was placed under house arrest by protesting employees. The unrest erupted following the announcement that New Year bonuses would not be paid, a decision the management attributed to newly imposed tariffs by the United States on Sri Lankan exports.

The incident began on the night of April 8, when employees locked the factory gates, completely blocking access to the premises. According to reports, a heated exchange took place between the factory’s top management and the workers after the Corporate Governance Authority officially informed staff that the New Year bonus would not be issued.

Protesting employees have vowed to continue their demonstration until the bonuses are paid in full. In response to the escalating tensions, factory management contacted the Weligama Police, prompting the deployment of special police security to the site.

As of the morning of April 9, employees were still staging a protest by obstructing the entrance to the factory.

The dispute follows a recent decision by U.S. President Donald Trump to impose a 44 percent tariff on goods imported from Sri Lanka. The tariff was officially announced on April 2 and is scheduled to come into effect on April 5.

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