A Honduran lawmaker has been stripped of her seat in Congress after being convicted last month of defaming and slandering a local banker.

The court on Monday also sentenced Maria Luisa Borjas of the opposition Libre party to serve two years and eight months, but she can avoid jail by paying a fine of $1 for each day.

Her congressional seat will pass to an alternate from her party.

Borjas was running for election in 2017 when she read a list of suspected "intellectual authors" from security ministry report about the 2016 killing of environmental activist Berta Caceres.

The list included Camilo Atala, president of Ficohsa bank.

Atala sued her for defamation, saying the comments caused "irreparable damage" to his reputation. He has denied any connection to the slaying.