Media reports have stated that Hela Apparel Holdings PLC, one of Sri Lanka’s leading apparel export companies, has filed a petition seeking an order from the Western Province Commercial High Court to wind up the company.The company has informed the Colombo Stock Exchange (CSE) that it has become unable to meet its debt obligations due to prolonged liquidity difficulties, and that all available options, including debt restructuring, finding new investors and selling assets, had been explored but proved unsuccessful.

Accordingly, on 5 August 2026, separate winding-up petitions were filed before the Commercial High Court in respect of Hela Apparel Holdings PLC and its two main subsidiaries, Hela Clothing (Pvt) Ltd and Foundation Garments (Pvt) Ltd.

Impact on overseas investments, including Kenya

Hela Apparel Holdings PLC is an international apparel group that had expanded its manufacturing network beyond Sri Lanka to Kenya, Egypt and Ethiopia.

Its investment in Kenya, in particular, was aimed at gaining competitive access to the US market by taking advantage of duty concessions available under the African Growth and Opportunity Act (AGOA).

However, since last year, the company has been implementing a business restructuring program, which has included the sale of its UK business operations, the transfer of certain factories in Sri Lanka to Emerald Clothing, and the restructuring of its African operations.

Who owns the company?

According to the latest published data from the Colombo Stock Exchange, the major shareholders of Hela Apparel Holdings PLC are: