Aug 23, Colombo: A Sri Lankan court on Friday has ended the enjoining order which prevented New Zealand dairy giant Fonterra from sale, distribution and advertising of all its milk products for two weeks.
The Gampaha District Court hearing a petition filed by a health sector union on August 16 ordered the ban on selling or advertising of imported milk powder products.
"The Enjoining order was dissolved on suppression and misrepresentation of the facts submitted to the courts," counsel appearing on behalf of the dairy producer told Reuters.
Fonterra today temporarily suspended its Sri Lanka based operations as a precautionary measure and asked the workers to stay at home because of the unstable situation after protesters demonstrated at its plant in Biyagama yesterday.
The union filed the petition after the Health Ministry asked the company to recall 39 metric tons of powdered milk from traders when the tests conducted by Sri Lanka's Industrial Technology Institute found high concentrations of agrochemical dicyandiamide (DCD) in samples taken from two batches of Fonterra's Anchor milk powder.
Fonterra strongly rejected the results saying that the Institute didn't have technology to detect DCD and angered Sri Lankan health authorities and the public.
The Health Ministry Monday cleared seven stocks of Fonterra milk powder that were held at the Customs after tests found that they were not contaminated with DCD.