COLOMBO - McDonald’s has ended 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 March 24.

McDonald’s stores across Sri Lanka shut on March 24 after the US fast-food giant launched a legal battle with its local franchise holder over allegations of poor hygiene, court officials said.

The Commercial High Court of Colombo ordered the closures until April 4, after the parent company accused the local franchise holder of failing to meet international hygiene standards.

“The closure was ordered pending an investigation,” a court official said.

“The parent company decided to terminate the agreement with the franchisee due to standard issues,” said Mr Sanath Wijewardane, a lawyer for McDonald’s.

“They are not in business in the country. They may decide to return with a new franchisee.”

He said the deal was cancelled on March 20, but the stores had continued to operate for some days.

Mr Wijewardane declined to describe the issues, but local media reported that McDonald’s went to court against the local partner, Abans, over allegations of poor hygiene.

A spokesperson for Abans declined to comment. Abans has held the franchise with 12 outlets since the US firm’s entry into Sri Lanka in 1998, about 25 years ago.

Notices were seen outside McDonald’s outlets on March 24 saying they were “closed” and there was no indication if or when they may reopen.

Sri Lanka, an Indian Ocean island of 22 million people, is recovering from a massive financial crisis. REUTERS