A Singaporean company that invested US$ 8 million in a foam mattress manufacturing plant in Sri Lanka has threatened to shut down operations, accusing the Board of Investment (BOI) of obstructing its business.
Honour Global Industries, the investor behind the project, stated at a media briefing that despite receiving approval from the BOI in March 2024 to produce 2.5 million mattresses annually for export, the company was later informed that exports to the United States would be limited to just 50,000 units per year.
“We cannot sustain operations with such restrictions,” a company representative said, warning that nearly 500 employees could lose their jobs.
The company has reportedly halted production for the past six months, incurring losses of US$ 300,000 per month.
Officials from Honour Global Industries claimed repeated efforts to seek clarity from the BOI and the Monetary Board have been ignored, despite recommendations from the President’s Office to allow operations to continue.
Representatives further alleged that excessive red tape and shifting regulations were discouraging foreign investment, urging authorities to resolve the matter or provide a legal pathway for shutting down the factory.
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