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McDonald's stores close in Sri Lanka after deal with partner ended, lawyer says
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McDonald's stores close in Sri Lanka after deal with partner ended, lawyer says
Mar 24, 2024 6:18 AM

COLOMBO, March 24 (Reuters) - McDonald's has

ended an agreement with its local partner in Sri Lanka and all

12 outlets in the country have been closed, an attorney for the

U.S. company said on Sunday.

"The parent company decided to terminate the agreement with

the franchisee due to standard issues," said Sanath Wijewardane,

an attorney for McDonald's. "They are not in business in the

country. They may decide to return with a new franchisee."

He said the deal was cancelled on Wednesday but the stores

had continued to operate for some days.

A spokesperson for the local partner, Abans, declined to

comment.

Wijewardane declined to describe the issues but local

media reported that McDonald's went to court against Abans over

allegations of poor hygiene.

Abans says on its

website

it first partnered with McDonald's in 1998.

Sri Lanka, an Indian Ocean island of 22 million people,

is recovering from a massive financial crisis.

(Writing by Krishna N. Das, Editing by Louise Heavens)

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