Maldives to enhance trade relationship with Lanka

Sanjeevi JAYASURIYA

Maldives will be looking forward to extend trade and investment relationship with Sri Lanka while addressing issues that hampers the progress at present. We are confident that further improvement of trade and investment relationship between the two countries could be achieved. There are opportunities for Sri Lankan companies to set up branches in Maldives with the streamlining of existing regulations, Sri Lanka Maldives Bilateral Business Council President Hussein Hashim said.

Sri Lanka could capitalize on its capabilities and expertise where the country could derive benefit in operational cost.

The two island nations in the SAARC region could promote tourism, trade and commercial activities for mutual benefit, he said addressing the Sri Lanka Maldives Bilateral Business Council meeting held in Colombo on Friday. Trade between the two countries was improving and Maldives was the third largest trading partner in the SAARC region. Trade between the two countries has gone up from US $ 54 million in 2010 to $ 76 million in 2011.

Imports from Sri Lanka were growing where it recorded 17 percent growth last year and trade is expected to reach $ 80 million this year. Bilateral trade needs to be further expanded and diversified. We need to exploit opportunities and are confident that we could work towards broadening and strengthening relationship. However, the skill development needs to be address to move forward, he said.

The two countries entered into agreements related to education, tourism,national security, legal framework and environment. There are 15 major ongoing investment projects in Maldives by Sri Lanka at present. Maldives is aiming at high economic growth with liberal economic policies and have identified tourism, telecommunication and transport as high growth sectors. Sri Lanka is the biggest supplier for Maldivian tourism industry and also accounts for the highest value of FDIs where a major potion is allocated for tourism related investment. Maldives expects to reach one million tourists arrivals by the end of this year and the market is mostly dominated by the European and Asia Pacific region. The major markets are China, UK, Germany, Italy and France. The hotels enjoy 60 to 80 percent occupancy annually.

Maldives offer joint venture opportunities and there are plans on the pipeline to build a multi purpose shopping mall in the North East Male. Investors are required to develop commercial facilities and maintain recreation areas in a 330,000 square feet space. As open tender procedure and law reforms are new development in Maldives, Sri Lankan companies could explore possibilities of entering into commercial relationship with Maldives, Hashim said.