Sri Lanka-Maldives Business Council Aims to Strengthen Trade Ties
The Sri Lanka-Maldives Business Council (SLMLBC) is actively seeking to deepen economic ties with the Maldives, driven by both countries’ desire to boost bilateral trade and investment. At its 16th annual general meeting, held recently at the Courtyard by Marriott in Colombo, council members and business leaders discussed the growing demand for Sri Lankan products in the Maldivian market, alongside the hurdles that still need to be overcome.
New Treaties to Foster Economic Cooperation
The meeting highlighted the potential for economic growth in sectors such as tourism, agriculture, food processing, textiles, and construction materials. Both countries agreed to negotiate new treaties to facilitate trade, including an Investment Protection Treaty, a Double Tax Avoidance Agreement, and streamlined remittance procedures for Sri Lankans working in the Maldives. These discussions took place during a high-level meeting between Maldives' Foreign Affairs Minister Moosa Zameer and Sri Lankan Prime Minister Dinesh Gunawardena in Colombo earlier this year. The proposed treaties are expected to strengthen economic cooperation, enhance bilateral trade, and promote mutual investment opportunities.
Trade Performance and Sectoral Opportunities
In 2023, Sri Lanka’s exports to the Maldives increased by 5.98% compared to the previous year, reaching a total of USD 112.54 million. The Maldives ranked as Sri Lanka's 23rd largest export destination, while imports from the Maldives, which mostly consist of fish and fish products, fell by 31.58% to USD 2.99 million. Key Sri Lankan exports to the Maldives included meat, fish preparations, dairy produce, insulated wires and cables, petroleum oils, and various food products such as sugar and confectionery.
Despite this growth, SLMLBC President Sudesh Mendis noted that Sri Lanka’s share of the Maldivian import market remains below its peak eight years ago, when it stood at 7.02%. “Our export revenue has increased, but it hasn't kept pace with the overall market growth,” Mendis said, highlighting challenges such as high inflation, stringent customs regulations, and currency exchange fluctuations.
Exploring New Avenues for Collaboration
During a recent delegation visit to key ministries in the Maldives, the SLMLBC explored opportunities to enhance trade and investment. Discussions with Maldivian authorities focused on reducing logistical costs, such as establishing a cruise service with cargo capabilities to transport fruits and vegetables, which have become more expensive due to high prices in Sri Lanka. This proposal is aimed at benefiting both countries by promoting joint tourism initiatives and reducing the costs of essential imports.
High Commissioner of Maldives to Sri Lanka, Masood Imad, emphasized the potential for further growth, urging Sri Lankan businesses to prioritize quality assurance, market research, and efficient logistics. “There is a strong foundation for enhancing trade relations,” he noted, advocating for joint marketing campaigns and integrated travel packages to strengthen the appeal of both countries as tourist destinations.
Strengthening Bilateral Relations and Future Prospects
Both nations have a shared interest in enhancing cooperation in several areas beyond trade. The Maldivian government has expressed interest in recruiting Sri Lankan teachers and doctors and facilitating the payment of Maldivian students and medical tourists in Sri Lanka. Additionally, there is growing cooperation in renewable energy, with both countries looking to explore opportunities in solar and wind power.
The SLMLBC has also announced plans for several collaborative events in the coming year, including exhibitions and trade missions designed to introduce innovative Sri Lankan products to the Maldivian market and promote stronger bilateral relations. "We are planning to organize another exhibition next year to promote our educational institutes," Mendis added.
A Shared Vision for Economic Growth
As Sri Lanka and the Maldives look to the future, both governments have reiterated their commitment to creating a favorable business environment that fosters growth and prosperity. With new treaties on the horizon, a focus on sustainable tourism, and ongoing dialogues between business communities, the foundation is set for a mutually beneficial partnership. The SLMLBC remains optimistic that these initiatives will help both countries overcome current challenges, unlock new opportunities, and strengthen their economic relationship for years to come.
This strategic push for deeper economic cooperation comes at a time when both nations are keen to diversify their economies and capitalize on shared opportunities, setting the stage for a new era of collaboration in the Indian Ocean region.