The All Ceylon Jamiyyathul Ulama (ACJU), Sri Lanka's main body of Islamic scholars, said that Halal certification would now be limited to export products meant for Islamic nations.
"We are giving up what is very important to Muslims. We are making a sacrifice in the interest of peace and ethnic harmony," Rizwe Mufthi of the ACJU said.
The Buddhist extremist Bodu Bala Sena (Buddhist Force) has been running a vocal protest campaign to force the end to Halal certification. Their main grouse was that non-Muslims are being forced to consume Halal certified products.
As an immediate reaction to BBS campaign, the ACJU had last month said that Halal products would only be offered to Muslims, which was dismissed out of hand by the BBS.
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Lanka's leading trade chamber, the Ceylon Chamber of Commerce, said it was impractical to have Halal and non-Halal products from the same item.
Responding to another criticism that the Muslim scholars of ACJU were making money out of Halal certification, the body said the certificates from now on would be issued free of charge to those who cater to export orders.