Sri Lanka's health ministry has released stocks of imported whey protein tested negative for botulism, a statement said here on Thursday, a few weeks after a similar scare stopped sales in China and Russia.

Following dairy giant Fonterra's admission to having stocks sent to several countries including China and Russia tested positive for botulism, the local Health Ministry also conducted tests on 104 samples obtained from imported stocks.

However, the Ministry believes the stocks are not contaminated and safe for consumption.

"The samples, which were inspected by the Medical Research Institute (MRI), did not contain Clostridium Botulinum bacteria. Therefore the Food Advisory Committee (FAC) has decided to release the stocks of products," the statement said.

Fears of contaminated milk triggered massive panic last month after Fonterra was accused by a Sri Lankan government research institute of having dicyandiamide (DCD) in its milk power, a chemical used in fertilizers to prevent them from soaking into rivers, which can be toxic in large amounts.

Two batches of Fonterra's imports were banned by Sri Lanka's Health Ministry for containing DCD but the company has rejected the charge.

The 39 metric tons of milk powder was recalled and products such as chocolate that could also contain contaminated milk powder or whey protein were ordered off shelves.

Subsequently, 29,000 metric tons of allegedly contaminated milk was ordered to be destroyed by a cabinet sub-committee appointed to investigate contamination charges.

Sri Lanka is the fifth largest purchaser of Fonterra products in the world.