Strengthening Sri Lanka-Maldives Trade Relations amid Challenges
By: Staff Writer
September 16, Colombo (LNW): Sri Lankan exporters are finding opportunities in the Maldives, particularly in sectors like tourism, agriculture, food processing, textiles, and construction materials, but face multiple challenges in fully capitalizing on this potential.
The Sri Lanka-Maldives Business Council highlighted these issues during its 16th annual meeting, emphasizing the constraints limiting exporters’ success in the Maldivian market.
Sudesh Mendis, President of the Sri Lanka-Maldives Business Council, pointed out that while Sri Lanka’s exports to the Maldives have slightly grown, they have not kept pace with the overall market growth. “Last year, our market share in the Maldives’ imports rose to 4.6%, but this is still far below the 7.02% share we held eight years ago,” Mendis said.
He noted that Sri Lanka’s need for foreign exchange was critical, yet rising inflation, high taxes, strict customs regulations, and fluctuating exchange rates have hindered competitiveness. He likened the current situation to “squeezing a patient’s neck and asking them to breathe,” stressing that local exporters need better conditions to compete.
A delegation from the Council visited seven key Maldivian ministries and other important entities such as Maldives Port Ltd., Economic Development Ministry, and the Chamber of Commerce. Mendis stated that their Maldivian counterparts warmly welcomed them and demonstrated enthusiasm for strengthening ties, referring to Sri Lanka as their “second home.”
However, he lamented the loss of opportunities to other nations, with only 1,800 Maldivians living in Sri Lanka now compared to 17,000 in 2018.Several issues were raised during discussions in the Maldives.
The high prices of Sri Lankan fruits and vegetables have reduced exports, with the Maldivian authorities urging Sri Lanka to consider establishing a cruise service with cargo facilities to reduce costs. The potential for joint tourism development was also highlighted, with Maldivian officials proposing collaborations on cruise services to enhance tourism and logistics.
Maldivian High Commissioner to Sri Lanka, Masood Imad, who delivered the keynote address, urged Sri Lankan businesses to focus on quality assurance, market research, and more efficient logistics to tap into the Maldivian market more effectively.
He expressed confidence in the potential of the Maldives-Sri Lanka partnership and called for a more favorable business environment to foster mutual growth and prosperity.
Imad also encouraged Sri Lankan investors to explore partnerships with Maldivian counterparts in developing high-end resorts, boutique hotels, and sustainable tourism projects. He proposed joint marketing campaigns and integrated travel packages as ways to strengthen the appeal of both nations as tourist destinations.
The Sri Lanka-Maldives Business Council is planning collaborative events in the coming year, including exhibitions and trade missions, with the aim of showcasing innovative Sri Lankan products and promoting stronger bilateral relation.
