McDonald’s Sri Lanka Closed – Be Updated Now

In Breaking News, Business
March 28, 2024
McDonald's Sri Lanka closed

McDonald’s Sri Lanka closed. Headline: According to an injunction from the Commercial High Court of Colombo, McDonald’s Sri Lanka stores will be closed until April 14.

COLOMBO, March 24 (Reuters) – McDonald’s (MCD.N), opens a new tab, has terminated its agreement with its local partner in Sri Lanka, and all 12 locations in the country have been closed, according to a counsel for the US firm.

Why McDonald’s Sri Lanka Closed? “The parent business chose to end its contract with the franchisee because of standard issues,” said McDonald’s attorney, Sanath Wijewardane. “They are not doing business in the country.” They can opt to come back with a new franchisee.” 

He stated that the arrangement was discontinued on Wednesday, but the stores had continued to function for a few days.

A representative from the local partner, Abans, did not respond. Wijewardane declined to comment on the issues, but local media stated that McDonald’s sued Abans over complaints of inadequate hygiene. 

McDonald’s Sri Lanka closed in 2024

McDonald's Sri Lanka closed

McDonald’s Sri Lanka Closed, its shops in Sri Lanka on March 24, 2024, after a court directive from the Commercial High Court of Colombo.

The court’s ruling came after McDonald’s attorneys claimed to have canceled its franchise deal with Abans in mid-March. The lawsuit will keep going with an argument next month.

McDonald’s shops in Sri Lanka were closed on Sunday. This comes after the fast-food behemoth filed a lawsuit against its local franchisee over charges of inadequate hygiene, according to AFP, citing court officials. 

McDonald’s Sri Lanka closed stores till April 14

The stores will remain closed until April 14, the Commercial High Court of Colombo ruled, after the parent firm accused the local franchise holder of failing to fulfill international sanitary requirements.

“The suspension has been ordered pending an inquiry,” a court official told AFP, adding that McDonald’s lawyers informed the court that they had canceled a franchise deal with the local company Abans. The hearing is set to resume in early April.

According to Reuters, Sanath Wijewardane, an attorney for McDonald’s, stated that the parent company chose to terminate the relationship with the franchisee owing to standard concerns. They are not doing business in the country. They may choose to return with an entirely fresh franchisee.” 

Abans has had a McDonald’s franchise in Sri Lanka with 12 locations since the company’s arrival in 1998. Outside McDonald’s locations around the country, signs read “closed” with no indication of when or if they would return.

According to a post on Numbers. lk, the shutdown will remain until April 4, 2024, and is the result of charges by the worldwide fast-food chain that its local franchisee Abans failed to meet international sanitary requirements. 

There has been no official statement from McDonald’s or Abans, which has managed the franchise and its 12 stores in Sri Lanka since 1998.

Customers were informed of the closure via notices put outside McDonald’s restaurants, leaving the outlets’ future uncertain. 

The shutdown of McDonald’s restaurants in Sri Lanka, precipitated by a court dispute over hygiene requirements, raises worries regarding its financial consequences. With 12 locations closed until April 14, there is uncertainty about their fate and contribution to the region’s economy, including jobs and consumer expenditure.

Conclusion

The shutdown of McDonald’s restaurants in Sri Lanka owing to a legal disagreement with its local franchisee, Abans, would have serious economic consequences. This includes immediate ramifications on job opportunities, distribution networks, and earnings, as well as possible long-term implications for investor confidence and the broader business environment.

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