McDonald’s stores close in Sri Lanka after deal with partner ends

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.”

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McDonald’s Corporation is an American multinational fast food chain, founded in 1940 as a restaurant operated by Richard and Maurice McDonald, in San Bernardino, California, United States. They rechristened their business as a hamburger stand, and later turned the company into a franchise, with the Golden Arches logo being introduced in 1953 at a location in Phoenix, Arizona.

Although the agreement was canceled on Wednesday, he said the stores had been open for business for a few days, Reuters reports.  An official from Abans, the local partner, declined to provide a statement. Wijewardane declined to elaborate on the problems, but the regional press stated that McDonald’s filed a lawsuit against Abans on the grounds of alleged hygienic violations.

The company first collaborated with McDonald’s in 1998. The 22 million-person island nation of Sri Lanka in the Indian Ocean is emerging from a severe financial crisis, according to Abans’ website.

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