- Consider the image above created by AI
A tense standoff erupted last night at a private garment factory in Weligama, Matara, as employees reacted furiously to the management’s announcement that they would not receive their annual New Year bonus.
Factory workers, angered by the decision, placed the head of the company under house arrest inside the premises and launched a protest. Police were called to the scene and managed to bring the situation under control, though tensions remained high.
According to company management, the inability to provide bonuses this year stems directly from the newly imposed U.S. tariffs on Sri Lankan exports, which came into effect on April 5th. They claimed that the sudden tax hike has severely affected the factory’s profit margins, leaving no room to allocate bonus payments.
Despite police intervention, a large group of employees continued their protest into the next morning, blocking the factory’s entrance and demanding answers.
The incident underscores the early and immediate impact of U.S. President Donald Trump’s new tariff policy, which has placed significant financial strain on Sri Lanka’s export-dependent garment sector. With the New Year approaching and household budgets tight, the move has sparked outrage among workers who say they are bearing the brunt of international politics.
Factory unions have yet to release a formal statement, but more demonstrations could follow if similar decisions emerge from other factories around the country.
