Sri Lankan Court Lifts Fonterra Suspension

A Sri Lanka court has lifted a suspension on Fonterra from selling and advertising its products just hours after the New Zealand dairy giant announced that it was temporarily closing its plant in the country because of safety concerns for its staff.

COLOMBO, Sri Lanka (AP) — A Sri Lanka court has lifted a suspension on Fonterra from selling and advertising its products just hours after the New Zealand dairy giant announced that it was temporarily closing its plant in the country because of safety concerns for its staff.

Fonterra said Friday that it was suspending its operations in Sri Lanka to ensure the safety of its approximately 755 workers. The decision came a day after a government-allied party demonstrated across from the company's offices, accusing it of selling tainted milk.

A nurses' trade union last week won a court decision ordering Fonterra to stop selling and advertising its products after the Health Ministry said tests performed by the government confirmed that two batches of two imported Fonterra milk products showed traces of the agricultural chemical dicyandiamide.

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