Sri Lanka-Maldives Business Council congratulates new President

Sri Lanka Maldives Business Council  President Sudesh Mendis

Sri Lanka-Maldives Business Council has extended its congratulations to the newly elected President Anura Kumara Dissanayake.

"On behalf of the Sri Lanka-Maldives Business Council, I extend our heartfelt congratulations on your appointment as President of Sri Lanka. Your leadership comes at a pivotal time for both Sri Lanka and the Maldives, and we are eager to explore the opportunities that lie ahead. We look forward to collaborating closely with you to strengthen the ties between our countries and promote mutual growth," said Sri Lanka Maldives Business Council President Sudesh Mendis.

His congratulatory message also included the following.

While our export revenue has grown to $ 163 million in 2023, it has not kept pace with overall market growth, resulting in a decline in our market share in the Maldives, which now stands at 4.65%, down from approximately 7.02% eight years ago. This decline highlights the need for concerted efforts to enhance our presence in this vital market.

We recognise that Sri Lanka requires foreign exchange; however, challenges such as inflation, high taxes, stringent customs regulations, import duties on raw materials, strict regulations on re-export items, exchange rate fluctuations, unethical business practices, and immigration restrictions are contributing to our export market losses. For instance, in 2018, there were 17,000 Maldivians living in Sri Lanka; today, that number has dwindled to just 1,800, which may have cost us $ 60-80 million annually. The export of fruits and vegetables has significantly declined due to high prices in Sri Lanka. As a result, the Maldives is now sourcing crates from Australia, seedless limes from Vietnam, canned egg yolks from Europe, and various aggregates and construction materials from India. India holds a significant advantage in supplying items via wooden boats.  Maldives importing chicken from Brussels and Turkey at a freight rate difference exceeding $ 5,000 (approximately Rs. 1.5 million) when compared to shipments from Colombo to Male, yet our prices remain higher.

During discussions with the Tourism Ministry and Maldives Port Ltd., there was a request to establish a cruise service with cargo facilities to enhance joint tourism and reduce the cost of fruits and vegetables. We have numerous opportunities to explore, but the lack of decisive leadership has prevented us from taking timely actions. Consequently, we have allowed other countries to seize these opportunities in the Maldives.

We regret to note that a trade agreement between our two nations has not yet been finalised, resulting in challenges for many Sri Lankan companies operating in the Maldives and for numerous exporters. During your tenure, we hope to see this trade agreement completed, strengthening our bilateral relationship to the benefit of both countries.

We are fully prepared to support you in your dedicated service to achieve the nation’s economic and social development vision. We wish you all the best in your future endeavours.