McDonald’s has officially ended its franchise arrangement with International Restaurant Systems (Pvt) Ltd, its former Sri Lankan partner, following the suspension of operations in March 2024 due to hygiene concerns. In a joint statement, McDonald’s Corporation and its Sri Lankan franchisee, which is affiliated with the Abans Group, announced that they have reached a mutually agreeable legal settlement, formally ending their relationship.

The closure of McDonald’s outlets across Sri Lanka in March was followed by a legal dispute with the local franchisee. Both parties expressed gratitude to the public for their support and urged them to ignore prior rumours or speculation circulated in the media.

McDonald’s has not yet indicated whether it intends to establish a new partnership to continue its operations in Sri Lanka.