Cross-border acquisition of Sri Lankan garment factories signals investor confidence despite global trade and tariff pressures
In a landmark deal amid global uncertainty and industry turbulence, TWC Capital, the corporate finance arm of TWC Holdings, successfully advised Hela Apparel Holdings PLC on a significant foreign direct investment (FDI) transaction. The deal involved the divestment of two operating garment factories in Mawathagama and Narammala, along with a freehold property and warehouse in Uhumeeya, to Q Collection Ltd., a Singapore-based investor backed by Bangladeshi interests.
Navigating a complex regulatory and policy environment, TWC Capital led the structuring of the transaction and secured necessary approvals from the Board of Investment (BOI), ensuring full compliance and timely closure. This cross-border acquisition was finalized despite ongoing challenges in the global apparel market, such as a 44% tariff on US-bound Sri Lankan exports, which impacts nearly 40% of the nation’s garment trade.
TWC Capital’s leadership throughout the process, from negotiating intricate legal frameworks to managing tight deadlines, highlights its expertise in high-stakes advisory work. The deal not only brings in critical foreign capital for Hela Group but also serves as a benchmark for Sri Lanka’s FDI environment, especially within the strategic apparel sector.
The acquisition aligns with long-term strategic goals, with the acquired factories poised to supply the European market, further enhancing Sri Lanka’s competitive edge in high-end garment production. Despite uncertainties surrounding GSP+ concessions, the transaction reinforces investor trust in the resilience and value of Sri Lankan apparel assets.
Commenting on the milestone, TWC Holdings Founder and Chairman Thilan Wijesinghe noted, “This investment reflects continued regional interest in Sri Lanka’s apparel sector and a re-alignment of export manufacturing capacity amid shifting global dynamics.” TWC Capital CEO Rasanja Perera added, “We’re proud to support a deal that not only injects much-needed FDI into Sri Lanka but also demonstrates the importance of regulatory clarity for sustained investor confidence.”
TWC Capital continues to play a vital role in mobilizing global capital into strategic sectors, advising on equity and debt raises exceeding $100 million and participating in several ongoing cross-border M&A transactions across the region.