Maldivian envoy invites more Lankan firms to invest in archipelago

The highest ranking Maldivian diplomat in Sri Lanka yesterday asked local companies to invest more in the Maldives in the future, as the Indian Ocean archipelago gears itself up to an economic transformation under its current leadership.

“I invite all businesses and investors to join us in our economic transformation process,” Maldivian Ambassador to Sri Lanka Zahiya Zareer said.

Speaking at an event organised by the National Chamber of Commerce of Sri Lanka, Zareer noted that there are many opportunities available in, but not limited to, the hospitality, construction, IT, education and health sectors.

She said that the Maldivian economy is expected to grow at 6 percent, where the per capita income is currently around US $ 7,200. Sri Lanka’s per capita income is around US $ 3,900.
Zareer thanked Sri Lanka for helping her country start its first economic transformation from one of the poorest countries in the world by introducing tourism to the Maldives.

“It was in  1972, an Italian tour organiser in collaboration with a Sri Lankan company, Ceylon Tours, that took the first 22 Italian tourists to the Maldives on a chartered Air Ceylon flight. And that was when the magical turn of the tide started to happen,” she said.

The country has since managed to turn its products into one of the most expensive and exotic tourism destinations in the world through effective marketing, generating high margins for hospitality investors.

Even though Maldivian Embassy Counsellor Mohamad Ahamed Wahad noted that tourist arrivals will slow down this year due to a sluggish global economy, the outlook for tourism in the future is positive. Zareer noted that except for a few taxes, investors in the Maldives could repatriate most of their profits. “Private enterprise, private sector ingenuity and a liberal policy on foreign investments helped us,” 

she noted. 
Currently, the John Keells group and the Aitken Spence group have the two largest foreign-owned resort chains in the Maldives. Recently, several other large conglomerates have also disclosed their plans to invest in resort properties in the archipelago. 
Further, companies such as Senok Trade Combine, Sanken Overseas, Nawaloka Construction and Sierra Construction have undertaken infrastructure projects in the Maldives, including buildings and power, water and sewerage system construction.

Zareer said that there are nearly 5,000 Sri Lankans working in the Maldives, especially in the financial and hospitality sectors. While around 4,000 Maldivians are studying in Sri Lankan education institutes, thousands more come to Sri Lanka for shopping and health tourism.

Despite growth in trade of services and investment, Zareer noted that the tradable goods sector has taken a back seat with Sri Lanka shrinking as a market share of Maldivian exports and vice versa. (CW)