McDonald’s
McDonald’s has ceased operations in Sri Lanka following the termination of its agreement with the local franchisee, resulting in the closure of all 12 outlets across the country.
Sanath Wijewardane, an attorney representing the US company, confirmed the decision on Sunday, citing standard issues as the reason for the termination.
“The parent company decided to terminate the agreement with the franchisee due to standard issues,” Wijewardane stated. “They are not in business in the country. They may decide to return with a new franchisee.”
While the deal was officially cancelled on Wednesday, the stores remained operational for a few days thereafter. However, a spokesperson for the local partner, Abans, declined to provide any comments on the matter.
Wijewardane refrained from elaborating on the specific issues that led to the termination. Nonetheless, local media outlets reported that McDonald’s had taken legal action against Abans, alleging substandard hygiene practices.
Abans, which states on its website that it entered into a partnership with McDonald’s in 1998, has yet to publicly address the situation.
The closure of McDonald’s outlets comes at a challenging time for Sri Lanka, as the country grapples with a significant financial crisis.
With a population of 22 million, the Indian Ocean island nation faces economic recovery efforts amidst widespread financial difficulties.
The discontinuation of McDonald’s operations underscores the complexities faced by multinational corporations operating in emerging markets.
It remains to be seen whether McDonald’s will seek to re-enter the Sri Lankan market with a new franchisee in the future.
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