Fonterra is lifting its farm gate milk price by 25c on the back of a strong global dairy market.
This follows confirmation from the Ministry that its investigation and testing found no food safety or quality issue with the Anchor product.
Fonterra Brands Sri Lanka managing director Leon Clement says the company had been confident the Ministry's investigation would find all three batches safe to consume.
"We take food safety very seriously. We were concerned to be informed a consumer had become ill and launched an immediate investigation to help try to find out what could be affecting them and to rule out any issues with our product.
"We have been working with the Ministry of Health to lift the temporary hold and are pleased that the ministry's investigation has confirmed our own internal findings that there is no food safety or quality issue with our product," says Clement.
Fonterra conducts close to seven million tests on its milk and products every year to ensure that they meet rigorous international food safety and quality standards.
Sri Lanka has lifted a temporary ban on the sale of some Anchor milk powder made by New Zealand-based Fonterra after local tests showed it did not cause illness in children, a government official said on Friday.