False posts claim opposition-linked group in Sri Lanka saved garment factory from closure

This article is more than one year old.
Published on June 30, 2023 at 10:42
2 min read
By AFP Sri Lanka

Facebook posts in Sri Lanka falsely say a cooperative controlled by a political opposition party acquired a factory from a major conglomerate in the island nation to save it from closure. But spokespersons for the cooperative and the People's Liberation Front (JVP) opposition party told AFP the claim is a fabrication. Apparel manufacturer Hirdaramani announced it had shut down its operations at the factory on May 22.

"The Meepe Hirdaramani factory that was about to be shut down has been acquired by the Mahawa cooperative society, currently controlled by JVP," reads a lengthy Sinhalese-language post shared on Facebook on May 21.

"If a cooperative society held by JVP can achieve this much, imagine what they will do if they were given the power to rule?" it adds.

The claim surfaced online following reports the Hirdaramani Group -- one of the largest apparel producers in Sri Lanka -- would shut down a leased facility in Meepe town near the capital Colombo.

The company confirmed the closure of operations in the MRC Associates Garment facility in a statement sent to the media on May 22 (archived link).

Screenshot of the false post captured on June 20, 2023

Sri Lanka's worst economic crisis since its independence sparked months of protest that led to the ouster of former president Gotabaya Rajapaksa in July 2022.

His successor, six-time prime minister Ranil Wickremesinghe, has cracked down on protests, raised prices, scrapped subsidies and doubled taxes to stabilise the economy.

Posts making a similar claim were also published on Facebook here and here.

Comments left by some social media users indicated they believed the posts.

"Great job JVP! it seems only the JVP can understand the struggles of the common man if they were to lose their job," one said.

Another wrote: "I am not a JVP supporter but this is a great accomplishment. Truly grateful to all from the Meepe Cooperative Society for making this happen."

Fabricated claim

Responding to the posts, Chandrarathne Bandara, chairman of the Mahawa Cooperative Society, told AFP on June 9: "This is a false claim. We have no financial capacity to make such a move and we are not in the business of taking over such facilities."

"We are not involved with the said factory in any way. We also do not have any links to their employee unions or any other groups," he added.

JVP spokesperson Upul Ranjan separately told AFP on June 9 the purported transaction described in the posts has not occurred.

A representative for MRC Associates Garment, which operates the facility, said on June 20 the claim is "bogus".

"No such third party has acquired the facility. It continues to remain under the management of MRC Associates Garment," the representative said.

A spokesperson for Hirdaramani told AFP on June 28 its decision to close the facility down was "primarily driven by the current global economic situation, which has led to a decrease in demand for apparel in key markets".

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