"Protest at Katunayake Free Trade Zone against reduction of employee rights", 14 September 2025

Workers of a garment factory in the Katunayake Free Trade Zone staged a protest against...a reduction of employee rights linked to the recent 10 percent reduction in tariffs on Sri Lankan exports to the United States...

Union representatives allege the government had earlier announced that the tariff reduction would not affect employees. However, company representatives had informed the union that due to the new tariffs and additional discount demands from brand companies, the firm could no longer provide several long-standing benefits to workers.

These include annual excursions, sports festivals, year-end get-togethers, employee uniforms, and the customary New Year’s Day gift exchanges...

Anton Marcus, Secretary of the Free Trade Zones and General Services Employees’ Union...said that due to these tariffs, the prices of goods exported to the American market would rise, leading to reduced purchasing and lower sales, which in turn could result in factory closures.

He further stated that research conducted in this sector has shown that, as an ultimate consequence of this tariff policy, around 16,000 jobs in Sri Lanka’s apparel sector could be at risk.

He added that although unions had requested the government for an opportunity to discuss these tariffs, the government had failed to call trade unions for talks and was instead holding discussions only with employers.

Around 500 employees of the Katunayake Free Trade Zone participated in the protest.