The federal Liberal Party moved to contain a public dispute after opposition leader Sussan Ley removed Senator Jacinta Nampijinpa Price from the shadow cabinet following comments about Indian migration that drew anger from the Indian community and criticism within the party.

Price was sacked from her frontbench role as the coalition's spokeswoman on defence industry and personnel on Wednesday after declining, when repeatedly asked, to declare confidence in Ley’s leadership. The Northern Territory senator had last week suggested the government favoured Indian migrants because they voted for the Labor Party; she has said she was making a broader point about "mass migration" rather than targeting a single community. Price also refused earlier calls from colleagues to apologise for the remarks.

Senior Liberals expressed differing views on the handling of the episode, with Senator Jane Hume saying on television that there had been "mishandling on all sides" but declaring the party had "cauterised the wound" and would now move on to other issues. Hume said she supported Ley remaining as leader. Liberal MP Andrew Hastie, who has confirmed leadership ambitions of his own, told reporters the "knives are not being sharpened" against Ley at present.

Ley apologised on Thursday to the Indian community for Price's comments on behalf of the Liberal Party, and on Friday declined to comment on whether Price would be reappointed to the front bench. She said she had addressed the circumstances that led to her decision but would not reflect further on colleagues.

Political analysts said the episode underscored ongoing tensions within the party between its conservative wing and more centrist elements. Zareh Ghazarian, head of politics at Monash University, described the controversy as "symptomatic" of broader problems within the party and said Ley's leadership was likely to remain under pressure for the remainder of the parliamentary term. Ley became leader in May after the party's poor federal election result under Peter Dutton.

Within the parliamentary party, members who regarded Price's remarks as crossing a line argued that the leader should have confronted the issue more quickly; others criticised the public way the matter unfolded. Sources said there was no immediate prospect of a short-term challenge to Ley's leadership.

Ley now faces the practical task of filling the vacated frontbench position. Queensland LNP MP Phil Thompson and Tasmanian Senator Claire Chandler were mentioned as potential contenders to take over the defence industry and personnel portfolio.

The dispute comes after a period of heightened sensitivity around migration and community relations in Australian politics. Price remains a prominent and popular figure in the party's conservative ranks, and her dismissal is likely to be watched closely by both supporters and critics as the Liberal Party navigates internal divisions and seeks to present a united opposition to the government.