"While historically a good business for us, the significant deterioration of economic conditions in Sri Lanka has seen the rapid devaluation of the Sri Lankan rupee against the US dollar," the co-op said then.
This meant it took more Sri Lankan rupee to pay for product purchased from New Zealand, which is sold in US dollars, and has resulted in an $81 million adverse revaluation of the Sri Lankan business payables owing to New Zealand.
"This has been reflected in our normalised EBIT, which may continue to vary as Sri Lanka's currency fluctuates," Fonterra said.
Over the weekend, Sri Lanka's authorities extended school closures due to fuel shortages.
Financial news service Bloomberg reported that worker remittances to Sri Lanka dropped to US$318m in June, down from the norm of around US$600m.
Expatriate remittances dropped to US$1.3 billion in the first half, down from US$2.8 billion in the first half of last year.
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Sri Lanka has suspended US$7 billion of loan repayments, and has US$51b in outstanding foreign debt.
Protesters have for the last month been demanding the resignation of president Gotabaya Rajapaksa, who they say has mismanaged the economy.
Sri Lanka faces shortages of fuel medicine, an annual inflation rate of over 50 per cent, and historically high debt levels.