This report discusses the challenges faced by the Tamil female workers who left their own homes in the North and the East and found employment in the Free Trade Zone in the Sinhalese-majority South due to economic necessity. It studies the instances, pattern and nature of the ethnic discriminations experienced by the female Tamil garment workers. The language barrier which causes the lack of communication and understanding of each other’s problems is captured in the many interviews conducted from both groups. The management’s role in creating such a situation is also highlighted. Many suggestions and recommendations are proposed to manage the problem and minimize any impact that can further cause damage to ethnic discrimination.