McDonald's Suspends Operations in Sri Lanka Due to Quality Concerns -

McDonald's, the world's leading fast-food chain, has temporarily halted operations in Sri Lanka. This decision comes after the company terminated its franchise agreement with Abans Pvt Ltd, citing a lack of adherence to McDonald's strict food and beverage quality standards.

27 March, 2024 | 14:07 p.m.

Staff Writer

Colombo, Sri Lanka – In a significant development impacting the fast-food landscape of Sri Lanka, McDonald's, the illustrious global fast-food behemoth, has temporarily suspended its operations within the island nation. According to the court filings, this unprecedented move is the result of repeated failures by the local franchisee to adhere to the stringent quality standards set by the McDonald's Corporation.

McDonald's has been a prominent fixture in the Sri Lankan fast-food market for approximately two decades, with 12 outlets in Colombo and neighboring areas. The restaurant chain was operated in the country by Abans PLC according to information available on their website. The parent company has obtained a court order preventing Abans PLC from serving food under the McDonald's brand in Sri Lanka, resulting in the closure of all 12 McDonald's outlets in the country. The franchise's hotline, website, and social media pages are now inactive. A temporary injunction issued by the Colombo Commercial High Court will keep these outlets closed until at least April 4th.

Senior Presidential Counsel Dr. Romesh de Silva arguing for the parent company stated that due to customer complaints and observations, McDonald's initiated an investigation after concerns arose about the cleanliness and safety standards at the Sri Lankan outlets. He informs the court that despite repeated warnings to improve hygiene and adhere to quality standards, the local partner has reportedly failed to take the necessary actions. This ultimately led to the termination of the franchise agreement on March 21st.

McDonald's, with a global presence in 120 countries and serving millions of customers daily, might consider relaunching operations in Sri Lanka with a new local franchise partner. However, the timeline for such a resumption remains unclear.

Update: Abans PLC Distances Itself from Local McDonald's Franchise Ownership