Dairy Giant Fonterra Has Temporarily Closed Its Operations in Sri Lanka

Dairy giant Fonterra has temporarily closed its operations in Sri Lanka, including its plants and office, due to the unstable situation in the country.

This move of the company is to protect its people and farmer shareholders' assets from the protests of a government-allied group.

The dairy co-operative has faced protests from a government-allied group on 22 August 2013 in Columbo, demanding it to respect the court order and withdraw its contaminated milk products from the market, reported nzherald.co.nz citing The Associated Press.

Fonterra chief executive Theo Spierings said: "It is a precautionary measure to ensure our 755 people working there are safe. We have closed our plants and office in Sri Lanka, and have asked our people to stay at home."

"Recent events, however, have made it difficult to maintain day-to-day operations, and we need to get them resolved," Spierings added.

"We are also working with Sri Lankan and New Zealand government authorities on a long-term sustainable solution for our Sri Lankan customers, communities and dairy sector.''