DTIS, Volume I - Enhanced Integrated Framework (EIF)

Sri Lanka, which in the last few years had been the second most important import source,
has recently declined in importance, with the UAE and India taking over as second and
third source markets in the first half of 2005. The main reason for the decline in imports
from Sri Lanka in 2005 is because the major imports from that country were fabrics and
other materials related to the garment and apparel industry, which has now ceased in the
Maldives.
The most significant products imported from the UAE in 2004 and 2005 have been diesel
and other fuels. Products imported from India are construction materials (mainly
aggregates, sand and cement), foodstuffs (rice, sugar, wheat flour and eggs) and
pharmaceutical products. Imports from Malaysia are fuel oils, construction materials
(mainly timber, steel bars and rods and pvc pipes) and computing equipment.
No single country within the EU is a significant supplier to the Maldives, although the
EU countries together typically account for between 10-15 per cent of all imports –
covering a wide variety of products.
Table 3.4: Main Import Sources, percentage share by value (CIF)
Country 2001 2002 2003 2004 2005 (Jan-Jun)
Singapore 25.4 25.8 24.9 25.1 24.1
Sri Lanka 13.1 15.2 13.7 10.7 5.3
India 10.6 10.7 10.1 10.3 10.1
Malaysia 8.9 5.2 7.7 7.6 6.0
United Arab Emirates 8.4 7.1 7.6 10.4 11.2
EU 12.1 14.3 11.0 10.2
Source: Calculated from Statistical Yearbook of Maldives 2004 and Customs Services
III. Imports - Services
Data on services imports is not readily available. However, most services imports are
related to the activities carried out by expatriate workers.
The past decade has seen a steady rise in the number of expatriates employed in the
country, from 26,468 in 1999 to 42,136 in August 2005, approximately 46 per cent of the
workforce. As is to be expected, the hotel and tourist sector leads in the use of the
expatriate work force with over 50 per cent of all requirements, followed by construction
(19 per cent), social services including health and education (13 per cent) and business
support related activities such as accounting and auditing (13 per cent) services. In terms
of occupational groups the majority of expatriates are to be found in the semi-skilled and
unskilled categories (44 per cent), followed by craft (13 per cent) and service (16 per
cent) workers.
The workers come from nearby countries such as India (43 per cent in 2004), Bangladesh
(24 per cent), Sri Lanka (22 per cent), and Nepal (2 per cent). See Table 3.5.
Sustainable long-term economic development will depend on a well-trained Maldivian
workforce and the steady absorption of school-leavers into the labour market. In view of
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