McDonald’s closes stores in Sri Lanka after deal with partner ends: Lawyer
Sri Lanka, an island in the Indian Ocean with 22 million inhabitants, is recovering from a massive financial crisis. (Photo: Bloomberg)
McDonald’s has terminated an agreement with its local partner in Sri Lanka and all 12 outlets in the country have been closed, a lawyer for the US company said on Sunday.
“The parent company decided to terminate the agreement with the franchisee due to standard issues,” said Sanath Wijewardane, a lawyer at McDonald’s. “They don’t do business in the country. They may decide to return with a new franchisee.” He said the deal was canceled on Wednesday, but the stores were still open for a few days.
A spokesperson for the local partner, Abans, declined to comment.
Wijewardane declined to describe the problems, but local media reported that McDonald’s had gone to court against Abans over allegations of poor hygiene.
Abans says on its website that it first worked with McDonald’s in 1998.
Sri Lanka, an island in the Indian Ocean with 22 million inhabitants, is recovering from a massive financial crisis.
First print: March 24, 2024 | 7:54 PM IST