Sri Lankan court lifts Fonterra ban

SRI Lanka has lifted a temporary ban imposed on New Zealand dairy giant Fonterra, but the company's consumer operations there remain suspended.

Fonterra says a Sri Lankan court has overturned an order preventing it from selling and promoting products in Sri Lanka.

"We have absolute confidence in our products and we are pleased the court has overturned the Enjoining Order," Fonterra Brands managing director Leon Clement said.

However, Fonterra's temporary suspension of its consumer operations would remain in place until the situation in Sri Lanka stabilised, he said.

Protest action outside the company's offices, north of Colombo, on Friday prompted Fonterra to suspended its operations and ask its 755 staff in Sri Lanka to stay home.

The protests and ban followed claims by Sri Lankan authorities traces of the fertiliser chemical dicyandiamide have been found in some Fonterra product. The company and New Zealand scientists dispute the claims.

Fonterra says it is working with Sri Lankan and New Zealand authorities on a long-term sustainable solution to enable it to continue its work in Sri Lanka.

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