Trade balance with Maldives favours Lanka

Shirajiv Sirimane in the Maldives

Male. Sunday. 18, Trade between Sri Lanka and the Maldives is increasing and the trade balance is in favour of Sri Lanka, the President of the Maldivian National Chamber of Commerce and Industry Ahmed Mujuthaba said.

Speaking to the Daily News at the Maldivian Hotel and Trade Exhibition he said that most of the Maldivian imports are from Sri Lanka and the main export commodities to Sri Lanka are dry fish and fisheries by products. "Sri Lanka is having very close trade and cultural ties with us and the Maldivians prefer to do business with Sri Lankans," he said.

The island's human resource market too is being dominated by the Sri Lankan's and they are mostly involved in white collar jobs. This is very evident especially in the Maldives tourism industry, which contributes to over 70 percent to the GDP. Over 90 percent of teachers too are from Sri Lanka and over 80 percent of Male prefers to travel to Sri Lanka for education, business, advanced medical treatment and many other things.

He said that this might change as the Indian government has decided to issue one-year open visas to Maldivians visiting India. "In Sri Lanka the visas are given for three months and this is a grey area specially for businessmen and students and the government should re-think about this," he said.

He said that though Maldives boasts highest per capita income of around US 2000, the wealth distribution in the country is very poor. He also said that the government is doing land allocation in the country and the private sector needs a better level playing field when they are competing with the state.

Even today the fish canning industry and the shipping sector is a monopoly of the government.

"We are also lobbying with the government to obtain tax concessions for trade and the Chamber is hoping to play a more aggressive role in this area.