MARKET REPORT MALDIVES
________________________________________________________________________________________
Prepared by:
Export Development Board (EDB), Sri Lanka
July, 2014
1. Background
Tourism, Maldives' largest economic activity, accounts for nearly 30% of GDP and more than
60% of foreign exchange receipts. Fishing is the second leading sector, but the fish catch has
dropped sharply in recent years. Agriculture and manufacturing continue to play a lesser
role in the economy, constrained by the limited availability of cultivable land and the
shortage of domestic labor.
Population 393,595
GDP (PPP) - USD 3.073 billion (2013 est.)
Exports USD 283 Mn
Exports - commodities: Fish
Exports - partners: France 18.9%, Thailand 15.8%, UK 11.4%, US 9.4%, Sri Lanka 8.6%, Italy 8.1%,
Germany 6.4% (2012)
Imports: USD 1.4 billion (2012.)
Import commodities - Petroleum products, clothing, intermediate and capital goods
Imports - partners: Singapore 21.7%, UAE 20.9%, India 9.6%, Malaysia 7.6%, China 6%, Thailand
5.6%, Sri Lanka 4% (2012)
2. Bilateral Trade between Sri Lanka and Maldives (2009-2013),
Value in US $ Mn
Year
Exports
from Sri
Lanka
Imports
from
Maldives
Trade
Balance
Total
Trade
2009
33.63
17.22
16.41
50.85
2010
43.78
12.19
31.59
55.97
2011
55.24
20.35
34.89
75.59
2012
52.38
16.1
36.28
68.48
2013
58.8
13.15
45.65
71.95
3. Sri Lankas major export products to Maldives (2009-2013), Value
in US $ 000
Code
H.21069019
H.070999
H.11010010
H.27101940
H.07095990
H.39233090
H.85444920
H.19053110
H.08109090
H.09023012
Description
2009
Other Yeast based preparations
Other vegetables, fresh or chilled.
Wheat flour
Gas oil including Diesel
Mushroom other than genus Agaricus
Other Carboys, bottles, flasks nes
Conducted, other upto 4 cored unarmed wire
and cables =< 16 mm2
Sweet buiscuts, in retail packaging 1 Kg or less
Fruits, fresh not elesewhere classified
Certified by Sri Lanka Tea Board as wholly of Sri
Lankan origin, other
2010
2011
2012
91
2935
1741
4401
2759
199
699
12
765
26
105
734
8
737
1129
265
589
3222
620
566
938
880
648
1335
516
1286
3210
910
1114
2013
2873
2651
2312
1962
1685
1534
1418
1326
1304
1167
4. Sri Lankas major import products from Maldives (2009-2013), Value
in US $ 000
Code
Description
H.03055910
H.030239
H.03055990
H.230120
H.030342
H.220830
H.030232
H.03011990
H.030389
H.731100
H.851829
Other - Maldive fish and substitutes thereof
Other Tuna (excl. HS 030231, 030232,
030233,030234,030235 & 030236) fresh or
chilled
Dreid fish excl. Maldivefish, sprats, shark fins
& fish maws
Flours, meals & pellets of fish or other
aquatic invertrebr, unfit for human
consumption
Frozen yellowfin tunas
Whiskeys
Fresh or chilled yellowfin tunas
Other
Other
Cylinder tank
Loudspeakers, not mounted in encloseurs
2009
2010
2011
2012
2013
11895
8740
9911
2065
6459
4708
5078
3860
515
672
3632
1634
1707
755
731
605
455
866
961
298
687
360
356
28
438
506
9
53
2
19
64
2
48
70
237
174
169
129
97
78
58
5. Import products of Maldives from the world and Sri Lankas
exports in USD 000
Product
Code
Product Label
Maldives
Imports from
Sri Lanka
Sri Lankas
Exports to
World
Maldives
Imports from
World
'85
Electrical, electronic equipment
8,605
212,976
94,706
'07
Edible vegetables and certain roots
and tubers
6,577
21,418
33,024
'08
Edible fruit, nuts, peel of citrus fruit,
melons
5,223
99,705
33,197
'84
Machinery, nuclear reactors, boilers,
etc
6,495
144,719
124,192
'21
Miscellaneous edible preparations
3,519
57,452
17,749
'22
Beverages, spirits and vinegar
5,710
6,271
28,606
'39
Plastics and articles thereof
3,979
61,242
34,492
'27
Mineral fuels, oils, distillation
products, etc
1,628
33,222
487,068
'30
Pharmaceutical products
2,730
4,070
11,699
'04
Dairy products, eggs, honey, edible
animal product
3,027
2,145
40,893
'48
Paper and paperboard, articles of
pulp, paper and board
3,007
33,730
13,274
'19
Cereal, flour, starch, milk
preparations and products
2,482
20,433
19,352
'94
Furniture, lighting, signs,
prefabricated buildings
958
26,877
37,256
'03
Fish, crustaceans, molluscs, aquatic
invertebrates
1,855
204,745
16,093
'18
Cocoa and cocoa preparations
1,745
17,104
7,377
'09
Coffee, tea, mate and spices
2,245
1,646,335
7,797
'61
Articles of apparel, accessories, knit or
crochet
1,703
1,968,580
14,557
'73
Articles of iron or steel
1,840
11,767
24,598
6. Sri Lankas leading exporters to Maldives 2013
No
Company
Product
1.
Acl cables plc
2.
Nestle lanka plc
3.
Eastern and allied agencies ltd
4.
Nidro supply pvt ltd
5.
6.
7.
8.
Serendib flour mills pvt ltd
Lanka maritime services ltd
Chevron lubricants lanka plc
Promowatch pvt ltd
9.
10.
11.
12.
Ceylon biscuits ltd
Snackings pvt ltd
Aitken spence hotel
managements pvt ltd
K i k lanka pvt ltd
Insulated Wires and Cables, Other Textile Articles,
Other Electrical & Electronic Products
Processed Food, Coconut Milk Powder,
Confectionary & Bakery Products, Other
Manufactures
Mushroom, Other Fruits, Processed Food,
Confectionary & Bakery Products, Animal Feed, Other
Paper Products, Sacs & Bags of Plastics, Soap,
Washing Preparations, Waxes, Candles etc.
Other Vegetables, Processed Food, Other Fruits,
Prawns, Crabs, Processed Vegetables, Fruits &
Juices, Confectionary & Bakery Products, Other
Edible Fish,
Rice & Cereals
Petroleum Products
Petroleum Products, Other Chemical Products
Other Products of Plastics ,Furniture & Seats, Metal
Furniture & Seats, Other Products of Base Metal,
Confectionary & Bakery Products, Processed Food
Other Products of Plastics
Processed Food, Other Fruits, Other Vegetables ,
Furniture & Seats, Other Products of Plastics ,
Switches, Lamp Holders Boards & Panels, Discharge
Lamps, Other Electrical & Electronic Products
13.
Lion brewery ceylon plc
Beverages, Other Transport Equipments , Glass &
Glassware, Furniture & Seats, Travel Goods, Bags etc.
14.
Ceylon cold stores plc
15.
Macksons paint industries pvt ltd
16.
Ceylon tobacco company ltd
Processed Food, Beverages, Other Products of Base
Metal
Paints, Varnishes and Dyeing Extracts, Other
Chemical Products
Manufactured Tobacco, Metal Furniture & Seats
7. Potential products to be explored from Sri Lanka
Apparel, Tea, Gems & jewellery, Fruit & vegetables, Ayurveda and spa products,
coconut related products, handicrafts, rubber products, confectionery products, food &
beverages, education services, Tourism
8. Trade Issues
1. Serendib Flour Mills (Pvt) Ltd.
Issues:
Wheat Flour is not included in the Credit Line offered by Bank of Ceylon to the
Government of Maldives.
Due to STO insisting on payment in MRF, STO is unable to take the price advance
as we require payments in USD.
Unavailability of efficient sea transport facilities.
2. Amana Takaful (Maldives) PLC.
Issues:
Issues in investing in Maldivian Capital Market
Withholding Tax (WHT)
The withheld amount cannot be claimed by the vendor as there is no 'Double Tax
Agreement'. Due to this every invoice is paid up to 11O% of its value.
Mandatory enrolment of expatriates under Retirement Pension Scheme (RPS) No
flexibilities in withdrawal clauses (Section 25 and 26)
USD currency supply by the banks
Applying Business Profit Tax as a standard rate for all entities.
3. Suren Cooke Agencies (Pvt) ltd
Issues:
Difficulty in obtaining work permits for Sri Lankan technicians who are trained
and licensed to handle insecticides and fumigants.
Inability to recruit Maldivian personnel due to their inadequate knowledge on the
subject and the reluctance to handle insecticides.
Delays in obtaining approvals and clearing of insecticides, fumigants and other
related items.
4. Dimo (Pvt) Ltd
Issues:
Delay in obtaining business visa for service engineers to visit Male.
7
Obtaining business visa on holidays (Friday/ Saturday) for emergency travel.
Long customs procedure to carry tools for repairs.
5. Aitken Spence Travels
Issue:
Organizing consumer exhibitions/fairs in Male
6. Aitken Spence Hotel Holdings PLS
Issue:
Inconvenience in getting Business visa.
7. Senoc Tea Ceylon (Pvt Ltd)
Product: Tea
Issue:
Default payment by M/s Najaah Art Place, No. 3, M H A Building, No. 1, Male 2002 from 16/03/2012. Amount is US $ 168,202.
9. Trade promotional programs carried out by Export Development
Board
Hotel Asia Exhibition - Male
Eduvision Exhibition - Male
Sri Lanka Trade Centre in Male
10. Proposed Trade Promotional Activities
International Educational Exhibition 2014, Male 13-16 June
