The Sri Lankan government last week halted the sale and distribution of Anchor powder from three batches after some children fell ill, Reuters reported.

Fonterra said at the time that independent investigations into the three batches, with a total weight of 76 tonnes, proved they were safe.

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Today Sri Lanka's director general of health said his own tests were also negative.

Sri Lanka imports more than $200 million of milk powder from New Zealand annually.

Fonterra ran into more problems in Sri Lanka, which suspended the sale of some Anchor milk powder over food-safety fears.

But the dairy giant said the affected milk powder is safe to consume.

Fonterra confirmed a Reuters report that Sri Lanka's health ministry suspended the distribution and sale of the three batches of Anchor milk powder. According to Reuters the suspension followed a complaint of food poisoning in some children in the southern village of Girandurukotte, 224 kilometres from the capital Colombo. Reuters reported that 76 tonnes of milk powder was affected.