- Zomato new addition to the line
Global corporations that have expanded to Sri Lanka throughout the years are now gradually halting their operations in the crisis-stricken country despite ongoing discussions with creditor nations for debt restructuring in order to receive an International Monetary Fund (IMF) bailout through an Extended Fund Facility (EFF) of Rs. 2.9 billion.
In recent reports, Zomato – an India-based food delivery tech company that also provides reviews on restaurants – has also decided to cease operations in the country.
However, India Today reported yesterday (12) that the company announced its exit from 225 smaller cities due to the expanding losses that the company happened to incur during the recent quarters, as it was “not very encouraging”. Accordingly, India Today stated: “The company (Zomato) reported losses of INR 3.5 billion for the quarter that ended in December due to the reduction in food delivery business.”
Attempts to reach the Board of Investment (BOI) Sri Lanka and the State Minister of Investment Promotion by The Daily Morning Business regarding Sri Lanka attracting further foreign investments in these circumstances in order to overcome the prevailing forex crisis in the island proved futile.
The French sporting goods retailer, Decathlon, suspended their operations in the country (Battaramulla) “indefinitely” from 30 October 2022 onwards (the Union Place store was closed on 31 July 2022), despite the Ceylon Chamber of Commerce (CCC) requesting import-dependent companies to be patient during these “temporary situations.”
The Japanese conglomerate, Mitsubishi Corporation, also announced the termination of operations from its 60-year-long service in Sri Lanka. Mitsubishi, in fact, is a key partner in numerous infrastructure projects in the country as well as a mediator between Japan-Sri Lanka bilateral relations. Ada Derana reported last Friday (10) that the company has cited Sri Lanka’s abrupt cancelling of Japan-funded projects such as the light rail transit (LRT) and liquefied natural gas (LNG) projects as the reasons behind the termination of its services in the country. Thus, their office in Colombo is to be closed from 31 March onwards this year.
However, the partnership with Mitsubishi’s sole distributor, United Motors Lanka PLC, is to “remain unhindered”, a statement by the company noted.