Male Port relocation seen as opening vast opportunities for regional trade

By Ifham Nizam

Male Port is set to relocate to Thilafushi, a strategic move that is expected to enhance port operations in the Maldives. Meanwhile, Kulhudhuffushi, located in the northern part of the country, is actively seeking investors to support its growing industrial potential.

According to a leading industrialist, this development positions the Maldives’ ports in closer proximity to Sri Lanka, which could boost regional trade and economic growth.

Sri Lanka-Maldives Business Council president Sudesh Mendis, a key advocate for strengthening Sri Lanka-Maldives relations, called for decisive action to reclaim Sri Lanka’s diminishing presence in Maldivian markets.

Speaking to The Island Financial Review, Mendis outlined a roadmap to revive bilateral trade and cultural ties rooted in centuries of shared history.

He said that according to historical records, the first king of the Maldives, King Koimala, hailed from Sri Lanka. He emphasized how this connection shaped the Maldivian civilization. “Yet, despite these shared roots, the economic partnership between the two nations is on a concerning downward trend, he said.

Mendis further said. “Sri Lanka’s share in Maldivian imports has fallen to a mere 4.65%, a sharp decline from the 7% share held eight years ago. This is a wake-up call. While Sri Lanka’s export revenue has grown, it has failed to keep pace with the overall growth of the Maldivian market.”

Amid the challenges, he shed light on promising efforts to re-establish Sri Lanka’s presence in the Maldives. He highlighted the country’s participation in the Hotel Asia Exhibition, where the Sri Lankan Pavilion showcased 19 stalls, predominantly featuring small and medium enterprises (SMEs).

“This was Sri Lanka’s largest exhibition delegation ever, involving 22 companies and 42 representatives. Exhibitors secured up to 180 inquiries, including interest from other countries. This is the potential we need to build on,” he said.

The initiative, supported by the EDB, not only reduced costs for participants but also provided advanced marketing tools like QR codes, enabling SMEs to compete effectively on an international stage.

He also emphasized the importance of government-to-government engagement. During a recent delegation visit to the Maldives, representatives visited seven ministries to discuss trade and investment opportunities. The discussions addressed critical issues such as double taxation and garnered assurances of Maldivian support for bilateral growth.

“Other nations, such as Turkey, have already signed trade agreements with the Maldives. It’s time for Sri Lanka to do the same, Sudesh urged, noting the strategic importance of formalizing trade agreements to unlock greater opportunities.

Mendis unveiled an ambitious CSR initiative to develop Farishmaathoda, a remote fishing island located 445 kilometers from Malé. This untouched gem, equipped with a domestic airport but lacking basic infrastructure like eyewear facilities, has invited Sri Lankan investors to build resorts and guest houses.

“This island offers immense potential for Sri Lankan businesses. We are not just talking about investments; we are talking about fulfilling promises and creating lasting partnerships, he remarked.

Supported by sponsors such as Aitken Spence Travels, Milo, and Enviromec International, the project aims to demonstrate Sri Lanka’s commitment to inclusive growth in the Maldives.

The statistics are sobering. In 2018, over 17,000 Maldivians lived in Sri Lanka, contributing USD 67.2 million annually to the local economy. Today, that number has dropped to just 1,800, with an annual revenue loss of USD 59.2 million.

Adding to the challenge, high inflation, import duties, and exchange rate fluctuations in Sri Lanka are driving Maldivian businesses elsewhere. “If we fail to act now, we risk losing even more ground in this critical market,” he warned.

He urged policymakers and the business community to prioritize the Maldives as a strategic partner. “This is more than a trade issue. It’s about revitalizing a bond that has stood the test of time. The Maldives is looking to us for leadership and we must rise to the occasion, he said.

With innovative strategies, collaborative initiatives, and renewed focus, he believes Sri Lanka can not only reclaim but exceed its former position in Maldivian markets, fostering a future of shared prosperity for both nations.