Udita Jayasinghe
COLOMBO (Reuters) – McDonald’s (NYSE:) 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, McDonald’s lawyer. “They are not doing business in the country. They may decide to come back with a new franchisee.”
He said the deal was called off on Wednesday, but the stores remained open for several more days.
A spokesman for Abans’ local partner declined to comment.
Wijewardane declined to describe the problems, but local media reported that McDonald’s had taken legal action against Aban over allegations of poor hygiene.
Abans says on its website that 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.