McDonald’s closes all outlets in Sri Lanka

COLOMBO: McDonald’s has ended an agreement with its local partner in Sri Lanka and all 12 outlets in the country have been closed.

“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, March 20, but the stores had continued to operate for some days. Wijewardane declined to describe the issues but local media reported that McDonald’s went to court against Abans over allegations of poor hygiene.

The Commercial High Court of Colombo ordered the closures until April 4, after the parent company accused the local franchise holder of failing to meet international hygiene standards.

“The closure was ordered pending an investigation,” a court official told a news outlet. He said lawyers for McDonald’s told the court that they had terminated a franchise agreement with local company Abans last week. The hearing is to resume in early April.

Notices were seen outside McDonald’s outlets on Sunday saying they were “closed” and there was no indication if or when they may reopen. Abans says on its website it first partnered with McDonald’s in 1998.