WT/TPR/S/332/Rev.1  
24 May 2016  
(16-2797)  Page: 1/96  
Trade Policy Review Body   
 
TRADE POLICY REVIEW 
REPORT BY THE SECRETARIAT 
MALDIVES  
Revision 
This report, prepared for the third Trade Policy Review of Maldives, has been drawn up by the WTO 
Secretariat on its own responsibility. The Secr etariat has, as required by the Agreement 
establishing the Trade Policy Review Mech anism (Annex 3 of the Marrakesh Agreement 
Establishing the World Trade Organization), sought clarification from Maldives on its trade policies and practices.  
Any technical questions arising from this report may be addressed to Sergios Stamnas 
(tel: 022 739 5382) and Nelnan Koumtingué (tel: 022 739 6252).  
Document WT/TPR/G/332 contains the policy statement submitted by Maldives. 
 
 
Note: This report was drafted in English. WT/TPR/S/332/Rev.1 • Maldives 
 
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  CONTENTS 
SUMMARY ....................................................................................................................... . 6 
1   ECONOMIC ENVIRONMENT ........................................................................................ 10  
1.1   Overview ................................................................................................................. 10 
1.2   Recent Econ omic Developments.................................................................................. 10 
1.2.1   Growth, inco me, and employment ............................................................................ 10 
1.2.2   Prices ................................................................................................................... 13 
1.3   Main Macroeconomic Policy Developments .................................................................... 13 
1.3.1   Monetary and exchange ra te policy .......................................................................... 13 
1.3.2   Fiscal policy ......................................................................................................... . 14 
1.4   Main Structural Policy Developments an d Challe nges ..................................................... 14 
1.4.1   Tax and fiscal reform .............................................................................................. 14 
1.4.2   Subsid ies reform ................................................................................................... 14 
1.4.3   State-owned enterprises (SOEs) .............................................................................. 15 
1.4.4   Labour market re form ............................................................................................ 15 
1.4.5   Pens ion refo rm ...................................................................................................... 15 
1.5   Balance-of-Payments Developments ............................................................................ 15 
1.6   Developments in Merchandise Trade ............................................................................ 16 
1.7   Trends and Patterns in Foreign Direct Investment ......................................................... 18 
2   TRADE AND INVE STMENT RE GIME ............................................................................ 20  
2.1   Introduction ............................................................................................................. 20 
2.2   General Constitution al and Legal Framework ................................................................ 20 
2.3   Trade Policy Formulation, Implementation, an d Evaluation ............................................. 21 
2.4   Trade Poli cy Objectives ............................................................................................. 22 
2.5   Main Trade Laws  and Transparency ............................................................................. 22 
2.5.1   Le gislation ........................................................................................................... . 22 
2.5.2   Tran sparen cy ........................................................................................................ 23 
2.6   Trade Agreements and Arrangements .......................................................................... 24 
2.6.1   Multilate ral agreements .......................................................................................... 24 
2.6.2   Regional agreements .............................................................................................. 25 
2.6.3   Bilateral agreements .............................................................................................. 25 
2.6.4   Generalized System of Preferences (GSP) and other unilateral preferences ..................... 26 
2.7   Foreign Inve stment Regime ....................................................................................... 26 
3   TRADE POLICIES AND PRACTICES BY MEASURE ........................................................ 29  
3.1   Introduction ............................................................................................................. 29 
3.2   Measures Direct ly Affectin g Imports ............................................................................ 30 
3.2.1   Registration, document ation, and cust oms clea rance .................................................. 30 
3.2.2   Custom s valuation ................................................................................................. 31 
3.2.3   Rules of origin .......................................................................................................  32 
3.2.4   Tariffs ............................................................................................................... ... 32 WT/TPR/S/332/Rev.1 • Maldives 
 
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  3.2.4.1   Applied MFN tariff ............................................................................................... 33 
3.2.4.2   MFN tariff disp ersion and e scalation ....................................................................... 33 
3.2.4.3   Tari ff bindings .................................................................................................... 35 
3.2.4.4   Tariff exemptions and concessions ......................................................................... 36 
3.2.4.5   Tariff preferences ................................................................................................ 37 
3.2.5   Import prohibitions, restrictions, an d licensing ........................................................... 37 
3.2.6   Anti-dumping, countervai ling, and safegu ard measures ............................................... 38 
3.2.7   State trading ......................................................................................................... 38 
3.3   Measures Directly Affecting Exports ............................................................................. 39 
3.3.1   Registration and documentation ............................................................................... 39 
3.3.2   Export taxes, charges, an d levies ............................................................................. 39 
3.3.3   Export prohibitions , controls, and licensing ................................................................ 39 
3.3.4   Export assistance ................................................................................................... 39 
3.3.5   Export-p rocessing zones ......................................................................................... 39 
3.3.6   State trading ......................................................................................................... 40 
3.4   Measures Affectin g Production and Trade ..................................................................... 40 
3.4.1   Standards and othe r technical requirements .............................................................. 40 
3.4.1.1   Standards, testing, and certification ....................................................................... 40 
3.4.1.2   Sanitary and phytosanitary (SPS) requirements ....................................................... 41 
3.4.1.3   Marking, la belling, and packaging .......................................................................... 41 
3.4.2   Taxation an d tax incentives ..................................................................................... 42 
3.4.2.1   Indi rect ta xes ..................................................................................................... 42 
3.4.2.1.1   Goods and services tax ..................................................................................... 42 
3.4.2.1.2   Bed/Green tax ................................................................................................. 43 
3.4.2.1.3   Other taxes ..................................................................................................... 43 
3.4.2.2   Di rect ta xes ....................................................................................................... 43 
3.4.2.3   Tax incentives .................................................................................................... 44 
3.4.3   Financial assistance ................................................................................................ 45 
3.4.4   Other form s of assi stance ....................................................................................... 45 
3.4.5   Governme nt procurement ....................................................................................... 45 
3.4.6   Local-cont ent requirements ..................................................................................... 47 
3.4.7   State involvem ent in the economy ........................................................................... 47 
3.4.8   Competition policy and price controls ........................................................................ 48 
3.4.9   Intellectual property rights ...................................................................................... 48 
3.4.9.1   Indust rial property .............................................................................................. 48 
3.4.9.2   Copyright and related rights ................................................................................. 48 
3.4.9.3   Enforcement ....................................................................................................... 49 
4   TRADE POLICIES BY SECTOR ..................................................................................... 50  
4.1   Introduction ............................................................................................................. 50 
4.2   Fisheries and Agricu lture ........................................................................................... 51 WT/TPR/S/332/Rev.1 • Maldives 
 
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  4.2.1   Fisheries ............................................................................................................... 51 
4.2.1.1   Featur es ............................................................................................................  51 
4.2.1.2   Policy, legislative and institutional framework .......................................................... 52 
4.2.1.3   Domest ic measures ............................................................................................. 52 
4.2.1.3.1   Fishing ............................................................................................................ 52 
4.2.1.3.2   Fish pr ocessing and MIFCO ................................................................................ 53 
4.2.1.4   Bord er measures................................................................................................. 54 
4.2.2   Agriculture ............................................................................................................ 55 
4.2.2.1   Featur es ............................................................................................................  55 
4.2.2.2   Policy .............................................................................................................. .. 55 
4.2.2.3   Domest ic measures ............................................................................................. 55 
4.2.2.4   Bord er measures................................................................................................. 55 
4.3   Manuf acturi ng .......................................................................................................... 56 
4.3.1   Features ............................................................................................................... 56 
4.3.2   Domestic measures ................................................................................................ 56 
4.3.3   Border  measures ................................................................................................... 56 
4.4   Energy .................................................................................................................. .. 57 
4.4.1   El ectricity ........................................................................................................... .. 58 
4.4.2   Hydrocarbons ........................................................................................................ 60 
4.5   Services ................................................................................................................ .. 61 
4.5.1   Features ............................................................................................................... 61 
4.5.2   Tourism ................................................................................................................ 61 
4.5.3   Financ ial sect or ..................................................................................................... 64 
4.5.3.1   Banking .............................................................................................................  64 
4.5.3.1.1   Structur e and perf ormance ................................................................................ 64 
4.5.3.1.2   Legislative an d institutional framework ................................................................ 64 
4.5.3.2   Insura nce .......................................................................................................... 66 
4.5.4   Telecommunications ............................................................................................... 67 
4.5.5   Transport .............................................................................................................  69 
4.5.5.1   Mariti me tran sport .............................................................................................. 70 
4.5.5.2   Air transport ....................................................................................................... 71 
REFERENCES .................................................................................................................. 7 4 
5   APPENDIX  TABLES .................................................................................................... 77  
 
CHARTS 
 Chart 1.1 Product composition of merchandise trad e, 2009 an d 2014 ...................................... 17
 
Chart 1.2 Direction of merchandise trade, 2009 and 2014 ...................................................... 18 
Chart 3.1 Distribution of MFN app lied tariff rates,  2008 and 2015 ........................................... 34 
Chart 3.2 Tariff escalation by  2-digit ISIC industry , 2015  ....................................................... 34 
Chart 3.3 Average applied MFN and bound ta riff rates, by HS Se ction, 2008 and 2015 ............... 35 WT/TPR/S/332/Rev.1 • Maldives 
 
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  Chart 4.1 Interest rate spread  (%), January 2009 to Ma y 2015 .............................................. 66 
 
TABLES 
 
Table 1.1 Selected macroeco nomic indicato rs, 2009- 14 ......................................................... 11 
Table 1.2 Basic economic  indicators , 2009- 14 ...................................................................... 12 
Table 1.3 Balance of payments, 2011-15 ............................................................................. 16 
Table 1.4 Stock of (non-tourism) fore ign direct invest ment, July  2015 ..................................... 19 
Table 2.1 Main trade-rela ted legislat ion, 2015 ...................................................................... 23 
Table 3.1 Tariff structure, 2008, 2013 and 2015 ................................................................... 32 
Table 3.2 Duty ex emptions , 2009- 14 .................................................................................. 36 
Table 3.3 Goods subject to im port permits,  July 2015 ........................................................... 37 
Table 3.4 Structure of tax revenue, 2009-14 ........................................................................ 42 
Table 3.5 Tax exemption incentives to invest ors, investments and businesses in SEZs ............... 44 
Table 3.6 Government procurement,  2009-14  ...................................................................... 45 
Table 4.1 Fishing indicators , 2009- 15 ................................................................................. 52 
Table 4.2 Tourism indicators , 2009- 15 ................................................................................ 62 
 
APPENDIX TABLES 
 Table A1. 1 Merchandise domestic ex ports by product groups, 2009-14 ................................... 77
 
Table A1. 2 Merchandise import s by product groups, 2009-14 ................................................ 78 
Table A1. 3 Merchandise domestic exports by destination, 2009-14 ......................................... 79 
Table A1. 4 Merchandise im ports by orig in, 2009- 14 ............................................................. 80 
 
Table A3. 1 Maldives' MFN applied tariff summary, 2015 ........................................................ 81 
Table A3. 2 Maldives MFN and SAFTA tariff summaries , 2015 ................................................. 83 
Table A3. 3 List of tariff lines where applied MFN rates exc eed bindin gs, 2015 .......................... 85 
Table A3. 4 Public enterprises of  the Republic of Maldives ...................................................... 92 
 
 
Table A4.1 Maldives' air transport agreements, as of end-October 2015 ................................... 95 
 WT/TPR/S/332/Rev.1 • Maldives 
 
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  SUMMARY 
1. Since its previous Trade Policy Review in 2009, Maldives' economic growth has been 
sustained, although at an irregular and relatively slower pace. Its ability to attract tourism from new and emerging markets (e.g. China) has helped the recovery from the global economic crisis. 
After a peak of 8.7% in 2011, real GDP growth decelerated to 2.5% in 2012 largely due to the 
impact of weak economic conditions in Europe on the tourism sector, but increased demand in tourism and related sectors made it rebound pr ogressively to 6.5% in 2014. Inflation dropped 
progressively to 2.4% in 2014 (from a peak of  11.3% in 2011) and remained subdued in 2015; 
the unemployment rate also declined slightly fr om 12.2% in 2009 to 11.6% in 2014 owing mainly 
to the recovery in the tourism sector.  
2. During the review period, the trade and trade-related structural reforms included the 
introduction of the goods and services tax (GST) and the business profit tax (BPT), new 
investment incentives for activities in special economic zones (SEZs), legislative measures for the formalization of informal enterprises, and a new pension system. Monetary policy accommodated 
fiscal indiscipline at times but with the enactment of the Fiscal Responsibility Act in 2013, strict 
limits on monetary accommodation were impose d, and the financing of the fiscal deficit was 
halted; furthermore, the 2015 Budget contained a mix of revenue raising and expenditure restraint 
measures as well as a large increase in capital expenditures financed by bilateral official loans. 
3. Following a sharp decline in foreign exchange earnings, on 11 April 2011 Maldives, a 
highly-dollarized economy, switched from a de facto  fixed exchange rate to a stabilized exchange 
rate regime with the rufiyaa allowed to fluctuate within a band of 20%. The nominal exchange rate 
moved quickly towards the upper limit of the band where it remains, while the real exchange rate 
appreciated by around 20% owing to rapid inflatio n pass-through. With low level of reserves, the 
Maldives Monetary Authority (MMA) is able to supply only a small fraction of foreign exchange 
demand with the rest satisfied in the parallel market; consequently, non-discriminatory exchange 
restrictions and a multiple currency practice (MCP) remain in place. Between 2009 and 2011 the current account deficit grew, due, inter alia , to a substantial increase in the value of imports 
reflecting, among other things, higher global  oil prices, whereas between 2012 and 2014 it 
narrowed progressively owing mainly to the recove ry in the tourism sector, and subdued global 
food and fuel inflation. In 2015, the deficit pe aked due to a reduction in the trade surplus 
reflecting stronger domestic import demand and a fall in fish exports and re-exports. Maldives' 
gross official reserves rose in 2014 due to an in creased supply of dollars in the market. Total 
public debt increased to 74.6% of GDP in 2014 while gross external debt decreased.  
4. The high degree of openness of the Maldivia n economy to international trade, and its 
integration into the world economy continued to be reflected by the ratio of its trade (exports plus 
imports) in goods and services-to-GDP, which rose to 198.6% in 2014 largely due to increased tourism receipts and goods imports. International trade and foreign direct investment (FDI) 
developments reflect the continuous importance of Asia as Maldives' main regional market and 
supplier, while the European Union remains its major individual merchandise market followed by Thailand. Marine food (mainly fish, crustaceans, and preparations thereof) remain Maldives' main exports. The foreign investment regime remains liberal; 100% foreign ownership is permitted in all 
sectors except for longline fisheries (since 2010) and retail trade. As of 2014 the positive list of 
foreign investment activities was replaced by a case-by-case review of each application. In addition to the 2015 constitutional changes openin g land ownership to foreign investors, SEZs 
incentives applicable to both domestic and foreign investors, an equitable BPT (replacing the 
disadvantageous royalty regime), and dispute settlement guarantees were introduced recently.  
5. During the review period, Maldives has been through a complex political transition period. 
Some changes were made in its legal and institutional framework for trade and investment, 
including new legislation or amendments, inter alia , on customs valuation, public health, taxation, 
copyright and related rights, tourism, land lease and financial services as well as the establishment of a Trade Facilitation Committee to advise on issues in facilitating trade and ease of doing 
business in the country.  
6. The graduation of Maldives from least-developed-country (LDC) status in 2011 and/or its 
classification as an upper-middle-income country by the World Bank have had some implications 
for preferential market access to certain major markets (i.e. Canada, China and the EU), some 
WTO commitments/benefits (e.g. TRIPS), and possibly the level of official development assistance WT/TPR/S/332/Rev.1 • Maldives 
 
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  and technical assistance. Its involvement in regional trade agreements remains limited and 
unchanged; it is a party only to the South Asian Free Trade Agreement (SAFTA) and is about to launch negotiations for a free trade agreement with China. Despite a seemingly transparent legislative process and being a longstanding beneficiary of trade-related technical assistance 
(TRTA), Maldives' poor record of WTO notificati ons and observance of tariff binding commitments 
remains virtually unchanged.  
7. The tariff remains one of Maldives' main trade policy instruments but its predominance as a 
source for government revenue has declined substant ially with the introduction of new taxes. As a 
consequence of a 2011 unilateral MFN tariff liberalization initiative eliminating tariffs on about 31.5% of tariff lines, the average applied MFN tariff rate dropped from 21.4% in 2008 to 13.9% in 2015. Agricultural products continue to face lower tariff rates (averaging 11.3%) than 
non-agricultural items (WTO definition) (14.3%). The peak ad valorem  rate was doubled to 400% 
(plastic bags and polythene film and sheets). The introduction of the HS2012 tariff nomenclature resulted in 7% less tariff lines. The tariff structure has become slightly more complex owing to the 
increase in the number of applied MFN rates, which in 2015 stood at 13 (zero, 5%, 10%, 15%, 
20%, 25%, 35%, 50%, 100%, 150%, 200%, 400%, one specific duty) compared to 11 in 2009. For most activities, the tariff is characterized by some level of de-escalation between unprocessed 
and semi-processed products, and escalation to fu lly processed goods, which means that effective 
rates of tariff protection for final products can be considerably higher than nominal rates. The Maldives Customs maintains an online Customs Tariff containing only 6,422 "active" tariff lines for customs declaration purposes that could provide scope for administrative discretion. The fact that 
94.9% of tariff lines are bound imparts a degree of predictability to the tariff. However, the simple 
average of bound MFN rates could considerably exceed the average applied MFN rate (possibly by about 24 percentage points), providing the authorities with extensive scope for increasing applied 
tariffs within bindings. Furthermore, similar to the time of its past TPR, applied MFN tariff rates 
appear to exceed bound rates on some 323 tariff lines of which 271 were on manufactured products. As Maldives' Tariff Schedule of Concessions is based on the HS2007 it is difficult to 
accurately compare its bindings' status with the currently applied HS2012 tariff schedule, thus, 
making the transposition of binding commitments to HS2012 another pressing task.  
8. During the review period, trade facilitation improvements included the introduction of a fast 
clearance channel for imports as well as the launching of the internal process to ratify the WTO 
Agreement on Trade Facilitation. New customs legislation in 2011 allowed for the implementation 
of provisions of the WTO Agreement on Customs Valuation; the transaction value is now used in a large majority of cases as the valuation basis.  
9. Import licensing continues to apply to all imports, and an ad valorem  fee is collected for the 
issuance of licences. Import restrictions and prohibitions on various items for, inter alia , religious, 
health, safety, security, and environmental reas ons have remained generally unchanged during 
the review period. There has been no major change in the area of standards and other technical 
requirements. Labelling requirements for pre-packaged food, food imports, tobacco products and breast-milk substitutes have been updated. 
10. Export duties levied on fish products (royalti es) were replaced by the BPT indirect tax as 
from 2012, whereas a 50% duty on the f.o.b. value of ambergris exports was retained for revenue 
purposes. No changes were made to export prohib itions, restrictions, or the licensing regime. As 
from 2014 incentives, inter alia,  involving temporary BPT exemption, have been provided for the 
establishment of SEZs, including for export processing, but no such zone has been set yet. 
11. Domestic support is provided mainly through tax and non-tax incentives (e.g. direct 
payments) some of which are available to sector-spe cific activities, e.g. fisheries, agriculture and 
energy sectors. State involvement in the economy, including in trading activities, remains 
prevalent in numerous sectors (e.g. fishing, public utilities, finance, telecoms, transport, and tourism). Despite the absence of privatization action during the review period, the authorities promoted joint ventures between government-owned companies and private sector stakeholders 
and in 2013 they passed legislation on the proced ures for the privatization, corporatization, 
monitoring, evaluation and introduction of shares of state-owned properties to the stock exchange. No major changes were made in the government procurement framework of Maldives, a 
non-signatory to the WTO Plurilateral Agreement on  Government Procurement; in addition to the 
possibility of restricting bids to domestic su ppliers, local firms may be granted a margin of 
preference of up to 7.5% in the evaluation of bids.  WT/TPR/S/332/Rev.1 • Maldives 
 
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  12. The passing of a Copyright and Related Rights  Act in 2010 has been a major development in 
the protection of intellectual property rights (I PRs) while the preparation of draft legislation on 
patents, industrial designs, trademarks and geographical indications is under way. Maldives remains a non-signatory to any of the treaties administered by the World Intellectual Property 
Organization and protection enforcement is we ak. Competition and bankruptcy and insolvency 
legislation remains at a drafting stage, although sector-specific legislation is in place for telecommunications.  
13. Despite its declining share of GDP (1.4% in 2015) the fisheries sector continues to be of 
major importance to the Maldivian economy as it accounts for nearly all (97.4%, 2014) merchandise exports; following the loss of prefer ential treatment in the EU market some fish 
exports were partly diverted into other markets. During the review period, tariff protection for the 
activity was reduced significantly, although most tariff lines relating to fish and fish products 
remain unbound. Fisheries subsidies in the form of direct payments are granted to support fuel costs (2009-14), a minimum income level during the low season (2014 onwards) and installation 
of equipment for on-board ice making facilities and for conversion of bigger fishing vessels to 
engage in longline fishing. The longline fishing policy and regime were changed to reflect illegal fishing and overfishing developments as well as domestic fishermen's interests/concerns; foreign 
participation in this type of fishery was ceased in 2010 and a catch allocation-based individual 
transferable quota (ITQ) scheme was established in 2014. The state-owned Maldives Industrial 
Fisheries Company (MIFCO) continues to enjoy considerable monopsony power as it holds exclusive rights in purchasing and processing skipjack tuna in two of four zones.  
14. Notwithstanding its land limitations and climatic risks, agriculture remains a crucial sector in 
terms of employment and therefore poverty reduct ion. Domestic producers receive support in the 
form of direct payments mainly distributed to compensate for loss of income due to natural 
disasters; as from 2014 the direct payments were replaced with insurance schemes for farmers as 
well as concessional loans to support agricultural development. While average tariff protection to agriculture was reduced, tariffs on tobacco and alcohol products were increased for health, 
religious and revenue purposes. Staple foods (i.e. ordinary rice, flour and sugar) continue to be 
imported mainly through the majority government -owned enterprise State Trading Organization 
(STO) and sold at government-controlled prices involving a subsidy. 
15. Development of manufacturing remains limited and state involvement seems to persist in a 
few key areas through, inter alia,  STO's and MIFCO's activities. Although tariff protection of 
manufacturing was reduced – except for some chemic als, cosmetics, soaps, tyres, textiles, motor 
vehicles, buses, and motor vehicle parts where it was increased – it remained slightly higher than 
the overall average applied MFN tariff and much high er than rates levied on agricultural items.  
16. Maldives remains fully import dependent on petroleum-based fuels with key activities like 
tourism and fishery being the main energy consumers. Action is being taken both at the border 
and investment level to promote renewable energy and address several constraints. State 
involvement in the energy sector was streng thened with the establishment of a second 
state-owned electricity company to achieve operat ional efficiency and ensure 24-hour electricity 
access to island communities. As electricity tariffs remain expensive by international standards, 
two types of subsidies equivalent to 0.7% of GDP (2014) are paid directly to households, some of 
which also benefit from cross-subsidization at the expense of businesses subject to much higher tariffs. 
17. Services remain by far the largest sector of the economy (accounting for more than 80% of 
GDP and over 90% of total goods and services expo rts) with tourism being the largest activity and 
the largest generator of government revenue. Th e limited commitments of Maldives under the 
GATS remain unchanged. Tourism-related taxes an d revenue were increased during the review 
period. Although tourism facilities are predominantly locally-owned, state involvement was apparently increased, and the lease period for islands or land was extended under certain conditions. New legislation in the financial sector covered Islamic banking, prudential requirements 
and prevention of money laundering and terrorism financing. Consequently, to capture a part of 
the market, a new Islamic bank was established and the offer of Shariah type financial products was expanded. The banks' capital adequacy rati o rose, but their minimum reserve requirement 
was reduced. Despite a recent drop, the relative ly high level of non-performing loans (NPLs) 
remains a concern. State involvement in fixed-line communications was somewhat reduced in recent years with the state firm's (Dhiraagu) opening to public investment in late 2011; efforts WT/TPR/S/332/Rev.1 • Maldives 
 
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  were made to reduce its dominance in other telecoms segments. Other major developments 
include a new National Broadband Policy aimed, inter alia,  at extending broadband Internet access 
to all the inhabited islands as well as the introduction of mobile number portability and the extension of the existing broad-based GST tax to telecommunications. Cabotage restrictions 
persist in both maritime and air transport activities. During the review period, the supply of 
international airline services was increased with the arrival of new operators and the expansion of 
airport capacity whereas a lower GST rate has benefited the domestic air transport of locals. On 
the other hand, state involvement in port and airport ownership and handling remained relatively 
unchanged. 
18. Despite a favourable economic outlook Maldives' economic growth is expected to slow 
further in 2016 with the implementation of fiscal adjustments contained in the 2015 Budget. 
Downside risks to the economic outlook are posed by, inter alia , possible fiscal slippages, the 
timely implementation of proposals to diversify into new and tourism-support activities, and political volatility. With limited policy buffers, Maldives' economy also remains vulnerable to 
exogenous risks including a surge in oil prices, protracted slow growth in its major markets 
(mainly Europe, and increasingly China), as well as a strengthening of the U.S. dollar. International competitiveness is crucial to the sustainable development of Maldives' 
tourism-dependent economy given its high degree of openness and regional competition. A major 
economic challenge confronting Maldives, with potential trade policy implications, is to formulate appropriate macroeconomic policies and undertake productivity-enhancing structural reforms to address, inter alia , skill mismatch in the labour market, the high dependence on fishing, tourism 
and oil imports, and government expenditure-related distortions (e.g. subsidies) as well as 
improving the efficiency of public service provision across the country. These and related reforms would increase the flexibility of the Maldivian economy and its ability to respond to external 
shocks, thus enabling it to continue meeting its economic and welfare objectives. 
 WT/TPR/S/332/Rev.1 • Maldives 
 
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  1  ECONOMIC ENVIRONMENT 
1.1  Overview 1.1.  Since its previous Trade Policy Review in 2009, Maldives' economic growth has been 
sustained, although at an irregular and slower pace. Its ability to attract tourism from new and 
emerging markets (e.g. China, section 4.5.2) has helped its recovery from the global economic 
recession.
1 International competitiveness is crucial to the economy given its high degree of 
openness (section 1.6). Inflation peaked at 10.9% in 2012, reflecting both domestic and external 
factors; the unemployment rate declined to 11.2% in 2012. Maldives has improved its human 
development performance and reduced its income inequality level2, supported by high levels of 
government expenditure on human development.3 International trade and foreign direct 
investment (FDI) developments reflect the continued importance of Asia as Maldives' main regional 
market and supplier, while the European Union remains its major merchandise market followed by 
Thailand.  
1.2.  Maldives shares many of the challenges of other small island developing states, including: 
high cost of public service provision and limited ability to exploit economies stemming from its 
small size; dependence on a few sectors; limited access to international markets due to its remoteness; and vulnerability to climate change and high cost of natural disasters.
4 Despite a 
favourable economic outlook and some success in diversifying its production/export base from 
traditional fishing into tourism, risks to the economy remain.5 Domestic risks stem from possible 
fiscal slippages and the timely implementation of proposals to diversify into new labour-intensive 
sectors such as off-port shipping, information technology, financial services and tourism-support 
activities (sections 1.3.2 and 2.7). With limited poli cy buffers, the risks of fiscal slippages are high 
and Maldives' highly dollarized economy is vulnerable to external shocks.6 The main external risks 
include protracted slow growth in its major markets (mainly Europe, and increasingly China), as 
well as a strengthening of the U.S. dollar. As at  end-October 2015, the authorities considered risks 
to growth as coming mostly from the tourism sector as growth in arrivals was less than anticipated and the average duration of stay was on a downward trend.
7  
1.2  Recent Economic Developments 
1.2.1  Growth, income, and employment 1.3.  Since the global financial crisis, Maldives' growth has resumed although remaining below its 
pre-crisis performance. After a decline of 5.3%  in 2009 as a result of the global economic 
recession, real GDP growth peaked to 8.7% in 2011 (Table 1.1). It decelerated to 2.5% in 2012 
largely due to the impact of domestic political unrest (section 2.2) and weak economic conditions in Europe in the tourism sector. As a result of increased tourism demand and related sectors real 
GDP rebounded to 4.7% in 2013 and rose slightly to 6.5% in 2014.
8 According to the IMF, GDP 
growth is forecast to remain fairly strong at 5% in 2015 and to slow down to 3.9% in 2016 with the implementation of fiscal adjustments contained in the 2015 Budget (section 1.3.2). 
                                               
1 Tourism contributes directly and indirectly to 78.1% of GDP (section 4.5.2), and the impact of the 
global economic recession has been  more severe than in other tour ism-dependent economies. Maldives 
Monetary Authority (2014). 
2 In 2013, Maldives, which is in the UNDP's medium human development category, ranked 103rd out of 
187 countries (104th out of 187 in 2008). Its income inequality index (Gini coefficient) dropped from 0.41 in 
2004 to 0.37 in 2009-10; a value of 0 represents absolute equality, a value of 1 absolute inequality. UNDP (2014b); and UNDP (2014a). 
3 Over the past decade, public expenditure on educat ion averaged 8.1% of GDP, and around 10% of the 
budget was allocated annually to the health sector. A wide  range of social protection  programmes has recently 
been introduced, including: the universal health insurance scheme, old age basic pension, electricity benefit, and retirement pension. Ministry of Economic Development (2013).  
4 Asian Development Bank (2015c). 
5 IMF (2015). 
6 Plans to improve infrastructure and develop special economic zones (SEZs) (section 1.3.2) are 
expected to support growth and help  build buffers. With tourist transact ions mainly in U.S. dollars, the 
economy is highly dollarized. 
7 Maldives Monetary Authority (2015b). 
8 Tourism demand picked up in 2013 as Maldives is increasingly diversifying into the Chinese market. 
Arrivals grew by 17% and drove up other sectors such as the construction, communications, and fisheries. WT/TPR/S/332/Rev.1 • Maldives 
 
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  Table 1.1 Selected macroeconomic indicators, 2009-14 
  2009  2010  2011  2012 2013 2014  
Real GDP (% change) -5.3  7.2 8.7 2.5 4.7 6.5  
Real GDP at market price (Rf million, 2003 prices)  19,563.9  20,966.0  22,791.9  23,361.4 24,458.9 26,043.7  
Real GDP at market price (US$ million, 2003 prices)  1,528.4  1,638.0  1,560.9  1,520.4 1,591.7 1,693.3  
Current GDP at market price (Rf million) 27,510.5  29,739.8  35,768.3  38,693.0 42,952.2 47,122.0  
Current GDP at market price (US$ million) 2,149.3  2,323.4  2,449.5  2,518.3 2,795.1 3,063.8  
GDP per capita US$ 5,629.7  5,926.3  6,055.5  6,034.6 6,225.8 6,738.9  
Unemployment rate (%) 12.2  11.7 11.5 11.1 11.6 ..  
Prices and interest rates       
Inflation - Male (CPI, % change) 4.5  6.1 11.3 10.9 4.0 2.4  
Lending rate (foreign currency)  13.00  10.38  10.20  10.48 11.14 11.42  
Lending rate (national currency) 13.00  8.37 8.30 8.67 8.60 8.50  
Saving rate (foreign currency)  6.50 4.05 4.17 3.73 3.81 4.14 
Saving rate (national currency)  6.50 3.94 3.92 4.04 3.76 3.23  
Exchange rate       
Rf/US$ (year average - IMF) 12.800  12.800  14.602  15.365 15.367 15.380  
Overall fiscal balance (% of GDP)       
Revenue and grants 20.8  22.0 27.7 26.2 27.7 31.6  
Current revenue 19.3 21.3 24.1 25.1 26.8 30.5 
Tax revenue 9.9  9.9 13.7 17.8 20.7 22.1  
Expenditures and net lending  39.8 36.4 34.3 33.9 31.5 34.8 
Net operating balance (excl. net lending) -19.0  -14.4  -6.6 -7.7 -4.1 -3.4  
Government debt 52.0 59.0 59.5 61.7 67.0 74.6 
Domestic debt 28.0  32.0 30.0 33.5 35.0 44.0  
External sector (% of GDP, unless otherwise 
indicated)        
Current account ..  .. -15.7  -7.3 -4.6 -4.1  
Net merchandise trade .. .. -55.9  -50.1 -49.1 -54.2  
Exports ..  .. 14.1 12.5 11.8 9.8  
Imports .. .. 70.1 62.6 60.9 64.0 
Services balance ..  .. 62.2 63.9 67.8 72.8  
Receipts .. .. 85.9 86.5 92.7 98.8 
Travel ..  .. 79.2 77.8 83.5 88.0  
Payments .. .. 23.7 22.7 24.9 26.0 
Capital account ..  .. 1.2 0.7 0.3 0.2  
Financial account .. .. 17.0 7.5 2.4 16.5 
Direct investment ..  .. 17.3 9.1 12.9 12.1  
Balance of payments .. .. -0.6 -1.2 2.3 8.1 
Trade to GDP ratio (%) ..  .. 193.9  184.2 190.4 198.6  
Merchandise goods exports (% change)a .. .. .. -9.2 5.3 -9.1 
Merchandise goods imports (% change)a ..  .. .. -8.2 8.1 15.1  
Service exports (% change)a .. .. .. 3.5 19.0 16.8 
Travel ..  .. .. 0.9 19.3 15.4  
Service imports (% change)a .. .. .. -1.8 22.1 14.4 
Gross international reserves (US$ million) 261.0  350.2  334.9  304.5 368.3 614.7  
in months of imports 3.3 3.9 2.7 2.4 2.5 3.7 
External debt (US$ million) 933.7  950.2  903.7  810.9 792.7 738.5  
Debt service ratiob .. .. 2.6 2.9 2.1 2.3 
.. Not available. 
a Growth rates on merchandise goods and services trade are based on US$, as taken from the BOP. 
b Rates of debt service to exports of goods and services. 
Source: Maldives Monetary Authorities online information;  National Bureau of Statis tics, Ministry of Finance 
and Treasury online information; IMF online info rmation; and World Develo pment Indicators. Viewed 
at: http://data.worldbank.org/country/maldives . 
1.4.  Since 2009, changes in the overall sectoral pa ttern of Maldives' GDP has consisted of a rise in 
the contribution of construction which accounted  for 13.2% of economic activity in 2014, and a 
decline in fisheries (due largely to the decline in fish catch), financial services and real estate (Table 1.2). 
1.5.  During the review period, the unemployment rate declined from 12.2% in 2009 to 11.1% in 
2012 due mainly to the recovery in the tourism sector, but rose to 11.6% in 2013 (Table 1.1). Youth unemployment is, however, on a rising trend owing to a mismatch in the skills required in the job market and the unavailability of these skills among locals.
9 The informal economy plays an 
                                               
9 UNDP (2014b). WT/TPR/S/332/Rev.1 • Maldives 
 
- 12 - 
 
  important role in creating jobs and livelihood opportunities, especially in the outer islands.10 
Measures taken to encourage the formalization of informal enterprises include: a dedicated programme providing business support services (including concessionary financing for business start-up and development); the Business Profit Tax Act and the Goods and Services Tax Act of 
2011 (sections 1.4.1 and 3.4.2), which require enterprises to register for tax purposes; the Small 
and Medium Enterprises Act of 2012, which provid es incentives tied to registration; and the 
Business Registration Act of 2014 (section 2.7). According to the authorities, registration of 
businesses operating in the informal economy has improved as a result of these measures.
11  
Table 1.2 Basic economic indicators, 2009-14 
   2009 2010 2011 2012 2013 2014 
GDP by economic activity at constant 2003 
prices (% change) 
Agriculture and mining -2.3 4.1 3.0 0.5 2.4 1.2 
Fisheries -2.6 -5.7 -1.1 -0.7 8.2 -0.9 
Manufacturing -19.8 -6.9 2.8 2.9 -6.5 0.9 
Electricity and water supply 7.4 9.1 7.6 3.7 5.2 7.9 
Construction -37.3 9.3 19.0 -1.2 -13.1 21.4 
Services 1.7 8.0 5.8 1.5 6.4 5.0 
Wholesale and retail trade -11.3 0.6 10.4 7.0 11.4 8.1 
Tourism (resorts, etc.) -5.4 15.8 9.2 -0.1 9.0 4.0 
Transport 1.2 17.0 7.0 -1.3 4.2 7.2 
Communication 22.3 1.9 8.4 4.7 10.2 8.6 
Financial services -4.9 5.0 3.0 0.2 1.8 2.4 
Real estate -0.1 3.4 1.8 1.3 3.8 4.2 
Business services -4.2 4.3 3.4 0.3 2.0 2.6 
Government administration 10.0 1.7 -0.5 2.9 4.1 4.3 
Education 7.5 2.1 2.9 3.2 -0.5 2.7 
Health 14.2 1.3 1.0 1.0 2.1 4.7 
Social services -15.5 1.2 1.1 2.6 -5.3 -2.5 
Share of main sectors in current GDP  (%, basic price)  
Agriculture and mining 2.1 2.2 2.2 2.2 2.2 2.0 
Fisheries 2.2 2.1 1.9 1.6 1.7 1.5 
Manufacturing 4.7 4.3 5.4 6.0 5.3 5.0 
Electricity and water supply 1.4 1.5 1.4 1.3 1.2 1.1 
Construction 8.9 9.7 11.9 12.1 10.9 13.2 
Services 85.2 84.7 81.7 81.4 83.4 81.8 
Wholesale and retail trade 3.8 3.9 4.1 4.2 4.4 4.4 
Tourism (resorts, etc.) 27.3 28.7 28.7 28.4 30.2 29.2 
Transport 7.1 7.5 7.1 7.4 7.6 7.4 
Communication 5.6 7.0 6.0 5.8 5.5 5.2 
Financial services 6.2 6.3 5.7 5.5 5.3 5.1 
Real estate 7.1 7.0 6.4 6.2 6.0 5.7 
Business services 1.1 1.1 1.0 1.0 0.9 0.9 
Government administration 16.4 14.2 14.4 14.7 15.6 16.5 
Education 5.5 4.5 4.3 4.2 4.0 3.7 
Health 4.0 3.4 3.2 3.1 3.1 2.9 
Social services 1.2 1.0 0.9 0.9 0.8 0.8 
Financial services indirectly measured -4.6 -4.6 -4.6 -4.6 -4.6 -4.6 
Source: National Bureau of Statistics, Ministry of Fina nce and Treasury, Statistical Yearbook of Maldives 2015 
online information. 
                                               
10 There is no data on the informal sector or info rmal employment. However, the Household Income and 
Expenditure Survey it to capture the info rmal sector and informal employment.  
11 Online information. Viewed at: http://www.unsiap.or.jp/e-
learning/el_material/PSS/1507_Informal/cr/MDV_cr.pdf . WT/TPR/S/332/Rev.1 • Maldives 
 
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  1.2.2  Prices 
1.6.  Inflation peaked at 11.3% in 2011 and remained high in 2012, reflecting both domestic and 
external factors. On the domestic side, the pass- through effect of the April 2011 depreciation of 
the rufiyaa (section 1.3.1), the introduction of  the goods and services tax (GST), and surging 
domestic fish prices were the main drivers.12 External factors were mainly higher global food, 
energy and commodity prices. Inflation dropped to 4% in 2013 and remained subdued in 2014, 
inter alia , on account of the waning effect of these factors. According to the IMF, inflation is 
projected to ease further to 0.3% in 2015 but to pick up (2.1% in 2016) with the full year effect of 
the increase in import duties (section 1.3.2), and to settle at around 4% in the medium-term (2018 and 2019).
13 The authorities indicated that inflation will remain contained in 2015 as oil and 
commodity prices remain low and the projected increase in import duties did not materialize.  
1.3  Main Macroeconomic Policy Developments 
1.3.1  Monetary and exchange rate policy 1.7.  Monetary policy remains the responsibility of the Maldives Monetary Authority (MMA). Key 
decisions relating to monetary policy are recommended by the Monetary Policy Committee for 
approval by the MMA Board of Directors, its highest decision-making body. However, the MMA 
needs approval from the President for any changes in the exchange rate. The MMA remains 
committed to its objectives of maintaining price stability and an adequate level of international 
reserves, while promoting non-inflationary economic growth.
14 The exchange rate is the main 
anchor for price stability and the liquidity position of the banking system is used as the operational target for monetary operations. The main instru ments used by the MMA are: the Minimum Reserve 
Requirement (MRR); open market operations (since 2009); and standing facilities (since 2010). 
MMA's interventions over the past years have consisted mainly in injecting or absorbing excess liquidity in the banking sector. Between 2014 and 2015, the MMA cut the MRR from its level (25% 
since 2006) to 10%, in a move to reduce financing costs (section 4.5.3.1.2).
15 During the review 
period, monetary policy occasionally accommodated fiscal indiscipline through the MMA's provision of credit to fund budget deficits.
16 Under the Fiscal Responsibility Act of 2013, strict limits were 
imposed on monetary accommodation (section 1.3.2), and financing of the fiscal deficit was 
halted.17 
1.8.  During the review period, Maldives passed from a de facto  fixed exchange rate to a stabilized 
exchange rate regime which, according to the IMF, is suitable for Maldives in view of the very high 
openness of its goods and services market, the do llarized nature of the economy, and the large 
seasonal variation in tourism revenues. The rufiyaa has been pegged to the U.S. dollar at the rate 
of Rf 12.80 per U.S. dollar (since July 2001); however, maintaining the peg became unsustainable 
as persistent foreign exchange shortages were exacerbated by a sharp decline in foreign exchange 
earnings during the global economic crisis. With effect from 11 April 2011, Maldives switched to a 
stabilized exchange rate regime with the rufiyaa allowed to fluctuate within a horizontal band of 
20% on either side of a central parity of 12.85 per U.S. dollar (i.e. between Rf 10.28 and 
15.42 per U.S. dollar).18 The nominal exchange rate moved quickly towards the upper limit of the 
band where it remains, as foreign exchange pressures persist (Table 1.1); at the same time the rufiyaa appreciated against the currencies of most of its major trading partners (mirroring the 
strengthening of the U.S. dollar). Following th e April 2011 devaluation, the real exchange rate 
quickly appreciated by around 20% owing to rapid inflation pass-through.
19 According to the IMF, 
the exchange rate was modestly overvalued in 2014. 
                                               
12 Maldives Monetary Authority (2014). 
13 IMF (2015). 
14 IMF (2015). 
15 Maldives Monetary Authority online information. Viewed at: http://www.mma.gov .mv/mpolicy.php . 
16 In 2013, net credit to the Government increased by 27.7% to Rf 6 billion (Maldives Monetary 
Authority, 2014). 
17 The provisions of the Fiscal Responsibility Act related to monetization were delayed until 2014. The 
Act was fully implemented in May 2014. 
18 Maldives Monetary Authority Press release No. PR/GB/2011/7 (unofficial translation). Viewed at: 
http://www.mma.gov.mv/PRGB20117English.pdf . 
19 Exchange rate devaluations have been unsuccessf ul (the latest being th e 2011 experience) as the 
rapid inflation pass-through offset the impact of the nominal exchange rate devaluation. IMF (2015). WT/TPR/S/332/Rev.1 • Maldives 
 
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  1.9.  Since the global financial crisis, the appearance of a parallel market premium and a shortage 
of foreign exchange at the official rate have continued to give rise to non-discriminatory exchange restrictions and a multiple currency practice (MCP). With a low level of reserves, the MMA was able to supply only a small fraction of foreign exchange demand, with the excess satisfied in the 
parallel market, and the premium has remained stable and low for an extended period; the scale 
of the premium has ranged from around 5% to 15 %, and during 2014 it reverted to just 3% to 
4% due to an increased supply of U.S. dollars (section 1.5).
20 The tourism industry appears to be a 
key supplier and driver of the parallel market. The existing restriction arising from rationing has 
eased, with the MMA increasing the foreign exchange provided to commercial banks from 
US$3 million to US$4 million a week from September 2013. 
1.3.2  Fiscal policy 
1.10.  During the period under review, the fiscal deficit was reduced from 19% of GDP (based on 
net operating balance figures) in 2009 to 3.4% in 2014 (Table 1.1), partly due to the recovery in the tourism sector and the introduction of new tax measures (sections 1.4.1 and 3.4.2). The Fiscal 
Responsibility Act of 2013 set a number of rules relating to public debt and fiscal deficit.
21 The 
2015 Budget measures aim to rein in the deficit through a mix of revenue raising and expenditure restraint measures as well as a large increase in capital expenditures (for a Male airport road 
bridge and for airport development) financed by official bilateral loans. Planned revenue raising 
measures included a tourism "green tax"; increased import or excise duties on some consumer items; fees from the acquisition of land for special economic zones (SEZs) (sections 2.7, 3.4.2.3, 4.3.2, and 4.5.3); and licence fees for new resorts. A freeze in public sector employment and 
targeting electricity and food subsidies are expected to contain expenditures. However, the risks of 
slippages are high, and some have already materialized.
22 They include: the possible reversal of 
the planned increase in import duties for motorcycles and textiles; downward revision of tourist 
arrivals and its impact on revenues from the tourism goods and services tax (GST); and delays in 
targeting electricity subsidies. The Fiscal Respon sibility Act of 2013 stipulates that the primary 
balance of the budget is to be in surplus by th e end of 2017, and the overall balance is to be 
maintained at a level not exceeding 3.5% of GDP.  In the proposed 2016 Budget, expenditures are 
projected to increase by 12.7% to Rf 27.5 bill ion (US$1.7 billion) to accommodate government 
spending, mostly on public investment projects.23 As a result, the deficit is expected to widen to 
Rf 3.4 billion. 
1.4  Main Structural Policy Developments and Challenges 
1.4.1  Tax and fiscal reform 1.11.  During the period under review, tax reform plans included the introduction of the GST and 
the business profit tax (BPT) aimed at reducing the vulnerability of government revenues to 
external shocks as well as tax and non-tax incentives (sections 1.2.1 and 3.4.2). The Maldives Inland Revenue Authority was also established as  an independent body for tax administration. 
Revenue raising and expenditure restraint measures were planned at the 2015 Budget 
(section 1.3.2).  
1.4.2  Subsidies reform 1.12.  Subsidies remain in place in the fisheries, agriculture and energy sectors (sections 4.2.2.4, 
4.3.2, and 4.4.2). Basic foodstuffs (flour, rice, su gar) are imported by a state-trading entity and 
sold at officially-set prices (sections 3.2.7 and 4. 2.2.4). Plans to reduce energy subsidies are under 
consideration (section 4.4).  
                                               
20 IMF (2015). 
21 Under the Act rules relating to public debt require:  the interest rate on loans from the MMA to be at 
the prevailing market rate, the repayment period not to exceed 91 days, and the loan amount not to exceed 1% of the average government revenue of the past th ree years; the Government to bring the level of the 
national debt below the threshold of 60% of the total GDP of the preceding year by the end of 2017; and loans 
to be taken only if they are for national development projects or to facilitate the improvement of productivity. 
22 Maldives Monetary Authority (2014). 
23 Online information. Viewed at: http://www.haveeru.com.mv/news/63893. WT/TPR/S/332/Rev.1 • Maldives 
 
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  1.4.3  State-owned enterprises (SOEs) 
1.13.  State-owned enterprises are operating in various sectors of the economy and may benefit 
from direct or indirect support such as government guarantees on debt and exemption from certain regulations (section 3.4.7). 
1.4.4  Labour market reform 
1.14.  Maldives' legal and institutional framework for workplace relations remains virtually 
unchanged. There is no minimum wage set for the private sector. The authorities indicated that 
there is no plan to do so, as it would adversely affect productivity.
24 However, a de facto  
benchmark floor of Rf 5,000 (US$320) per month is in place for public sector employees. 
1.4.5  Pension reform 1.15.  A new pension system was introduced in 2009.
25 Unlike the former system which covered 
only public sector employees, the new scheme wa s extended gradually to the private sector, 
self-employed and foreign workers.26 Participation for self-employed and foreign workers is 
non-mandatory. By the end of 2013, there were mo re than 120,000 workers enrolled into the new 
scheme, and the accumulated pension savings is projected to reach US$300 million by the end of 
2016. The lack of allowable investment opportuni ties is one of the major impediments to the 
success of the new system. Over 85% of pension savings are being invested in short-term 
government securities. Transitional benefits, which were put in place before the new pension 
scheme becomes fully functional, were never phased out. In addition, institution-specific pensions and benefits emerged resulting in the duplication of retirement benefits and pressures on the budget. As a consequence, pensions doubled fr om 2012 to 2013 and accounted for 2.2% of GDP. 
Pension pay-outs to public sector employees receiving double pension benefits are projected to 
reach US$11 million in 2016 (from US$3.5 million in 2010).  
1.5  Balance-of-Payments Developments 
1.16.  During the review period, the current account remained in deficit. In 2011, it rose to 
US$383.4 million, reflecting higher global oil pr ices and a surge in imports of construction 
materials stemming from the revi val of some public sector projects and the launch of new ones.
27 
The deficit narrowed in 2012 and 2013 owing mainly  to the recovery in the tourism sector, and 
subdued global food and fuel inflation in 2013.28 Although the merchandise trade balance 
deteriorated further in 2014, it was largely offset by a significant increase in receipts from travel 
services. The deficit was expected to peak at US$399.9 million in  2015 due to a reduction in the 
trade surplus reflecting stronger domestic import demand and a fall in fish exports and re-exports. 
According to the authorities, the deficit would be around the same level in 2016.  
1.17.  Persistent primary fiscal deficits have led to  a high and increasing level of public debt. Total 
public debt increased from 52% of GDP in 2009 to 74.6% in 2014 (Table 1.1), well above the 60% 
limit imposed by the Fiscal Responsibility Act. Maldives' public debt problem is largely a domestic one, as domestic debt increased from 28% to 44% of the GDP over the same period. Gross 
external debt decreased by 20.1% to US$738.5 millio n (Table 1.1); the debt service ratio declined 
to 2.3% in 2014 (from 2.9% in 2012).
29 The ADB noted in its 2015 Economic Outlook30 that debt 
sustainability is a risk because of the Government's plans to massively scale up public capital investment over the next three years (with at least 30% financed through loans), and the 
demonstrated difficulty of cutting back current spending.  
                                               
24 Online information. Viewed at: http://www.haveeru.com.mv/news/63957. 
25 Maldives Pension Act of 2009.  
26 World Bank (2014b) . 
27 Maldives Monetary Authority (2012). 
28 Maldives Monetary Authority (2014); and IMF (2015). 
29 Due to ongoing data revisions, the debt service ratio is only available from 2011 onwards. 
30 Asian Development Bank (2015a). WT/TPR/S/332/Rev.1 • Maldives 
 
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  Table 1.3 Balance of payments, 2011-15 
(US$ million) 
   2011  2012  2013  2014 2015a 
Current account  -383.4 -184.5 -127.4 -124.6 -399.9 
Goods and services balance 153.0 346.8 523.6 570.2 286.3 
Goods balance -1,370.5 -1,261.4 -1,372.0 -1,660.0 -1,896.9 
Exports 346.4 314.4 331.0 300.9 241.9 
Imports 1,716.8 1,575.8 1,703.0 1,960.9 2,138.8 
Services balance 1,523.5 1,608.2 1,895.6 2,230.2 2,183.2 
Receipts 2,104.5 2,178.9 2,592.1 3,026.8 3,048.7 
Travel 1,940.2 1,958.0 2,335.2 2,695.7 2,644.6 
Payments 581.0 570.6 696.6 796.6 865.5 
Income balance -294.7 -272.1 -363.7 -370.2 -328.2 
Current transfers -241.8 -259.2 -287.2 -324.7 -358.1 
Capital account 28.5 17.4 7.9 6.6 46.3 
Financial account  416.6 187.7 67.4 507.0 301.7 
Direct investment 423.5 228.0 360.8 371.5 333.2 
Direct investment in Maldives 423.5 228.0 360.8 371.5 333.2 
Portfolio investment  0.1 53.1 -53.3 -17.2 -4.6 
Other investment  -7.1 -93.4 -240.1 152.8 -26.9 
Net errors and omissions -76.7 -51.0 115.9 -141.9 26.9 
Balance of payments -15.2 -30.4 63.8 247.2 -25.0 
a Estimates. 
Source: Maldives Monetary Authority online information. Viewed at: http://mma.gov.mv/statis.php . 
1.18.  Maldives' gross official reserves increased from US$261 million in 2009 to US$614.7 million 
(3.7 months of merchandise imports) in 2014 (Table 1.1). In 2014 alone, the increase amounted to US$246 million as a result of a larg e improvement in net capital inflows.
31 Nevertheless, 
according to the IMF they were low compared to standard reserve adequacy indicators (around 
2.8 months imports) as usable reserves were just US$132 million (0.6 months imports).32 As of 
September 2015, gross international reserves stood at US$627 million. 
1.6  Developments in Merchandise Trade 
1.19.  The high openness of Maldives' economy to international trade, and its integration into the 
world economy, continued to be reflected by the high ratio of its trade (exports plus imports) in goods and services to GDP. The ratio increased from 193.9% in 2011 to 198.6% in 2014, largely 
due to an increase in travel receipts (Table 1.1). 
1.20.  The composition of merchandise trade remains concentrated in a few items, especially for 
exports. Marine food (mainly fish, crustaceans, and preparations thereof) remains Maldives' main exports (Chart 1.1). In 2012, domestic exports almost doubled to US$161.6 million (Table A1.1) 
thanks to higher exports resulting from an improvement in fish landings, and higher international 
fish prices; the level of re-exports remain particularly high. The composition of merchandise imports remained broadly unchanged (mainly in volving manufactured products, intermediate 
inputs for the apparel industry, food, and fuels). The share of agricultural products in total imports 
dropped slightly to 22.9% while the share of fuels increased from 20.7% to 28.7%, reflecting increased energy demand due to the economic acti vity (operation of new resorts, new regional 
airports, etc.). 
1.21.  Merchandise trade is oriented towards Asia, although the EU remains the major market for 
Maldives' merchandise exports (almost exclusively fish). There was a minor shift away from the markets of the EU (possibly reflecting a reduction in GSP privileges (section 2.6.4)) and Sri Lanka, 
towards Thailand and the United States which were, together with the EU, the main individual 
export destinations in 2014 (Chart 1.2). During the same period, the share of the United Arab Emirates (Maldives' major merchandise suppliers as of 2014 owing to the increased 
demand in energy) in total imports rose while th ose of Singapore and India dropped (Chart 1.2).  
                                               
31 World Bank (2015b). 
32 Low reserves levels also indicate external sector weakness. IMF (2015). WT/TPR/S/332/Rev.1 • Maldives 
 
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  Chart 1.1 Product composition of merchandise trade, 2009 and 2014 
2009 2014
(a)    Domestic exports (f.o.b.)
Total:   US$76.7 million Total:  US$144.8 million
(b)    Imports (c.i.f.)
Chemicals
6.0%Transport
equipment
6.7%
Manufactures
52.8%Electrical 
machines  
10.1%
Non-electrical 
machinery  
7.0%Electrical
machines
7.9%
Other semi-
manufactures
9.4%
Chemicals
6.0%Manufactures
46.3%
Total:   US$966. 1 million Total:  US$1,992.7 millionOther
2.6%
Other consumer 
goods  9.4%Other consumer 
goods  11.8%
Other mining
2.3%Other semi-
manufactures
11.1%Other 
3.6%
Agriculture
22.9% Agriculture
24.3%Transport 
equipment
7.0%
Fuels
28.7%Fuels
20.7%Non-electrical 
machinery
6.6%Fish, crustaceans, 
etc. & preparations 
thereof
96.4%
Other mining
2.2%Fish, crustaceans, 
etc. & preparations 
thereof
97.4%
 
Note: Including re-exports, exports totalled US$169.0 million and US$300.9 million, respectively, in 2009 
and 2014. 
Source: UNSD, Comtrade database (SITC Rev.3), and Ma ldives Monetary Authorities online information. WT/TPR/S/332/Rev.1 • Maldives 
 
- 18 - 
 
  Chart 1.2 Direction of merchandise trade, 2009 and 2014 
2009 2014
(a)    Domestic exports (f.o.b.)
Total:   US$76.7 million Total:  US$144.8 million
EU28
9.4%
China
2.7%Americas
9.6%Other
2.2%(b)    Imports (c.i.f.)
EU28
8.8%Other
2.2%
United Arab 
Emirates
15.7%Americas
4.0%
Total:   US$966.1 million Total:   US$1,992.7 millionSingapore 
17.5%Bahrain
4.0%United States
9.0%
Sri Lanka
6.0%
Thailand
32.2%
Sri Lanka
6.5%Other Asia
3.5%
EU28
37.0%
India
12.1%Other
4.4%
Other Asia
7.7%EU28
42.5%
Australia
2.8%Chinese Taipei
2.5%
Iran, Islamic Rep.
5.9%
Thailand
4.4%Other Asia
6.0%
Thailand
5.0%Other Asia   
6.1%Other
3.8%
Malaysia
7.3%Sri Lanka
17.1%
Malaysia
6.6%United Arab
Emirates
23.7%
China
5.3%India
8.6%Sri Lanka
6.5%
Singapore
21.4%Thailand
20.7%
Japan
4.0%Japan
5.3%
 
Note: Including re-exports, exports totalled US$169.0 million and US$300.9 million, respectively, in 2009 
and 2014. 
Source: UNSD, Comtrade database. 
1.7  Trends and Patterns in Foreign Direct Investment 
1.22.  From US$158 million in 2009, annual FDI inflows peaked at US$424 million in 2011 and 
remained relatively high in 2013 and 2014.33 FDI stock was estimated at US$2.5 billion in 2014, 
compared to US$128 million in 2000. Much of the investment was in the tourism sector. As at 
July 2015, FDI stock in other sectors (mainly transportation, logistics, water and sewerage) stood at US$977.7 million (Table 1.4). The authorities consider that prospects are promising with the implementation of the 2014 Special Economic Zones Act (section 3.2.4.2). 
                                               
33 UNCTAD (2015b). WT/TPR/S/332/Rev.1 • Maldives 
 
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  Table 1.4 Stock of (non-tourism) fo reign direct investment, July 2015 
(US$'000) 
Type of investment Amount 
Air transportation & inflight catering 24,058  
Medical services 5,350  
Accountancy 929 
Repair/maintenance of machines  45,217  
Water and sewerage 293,209  
Telecommunications 30,814  
Cement 1,444  
Spa management services 2,784  
Water sports centres 1,371  
Boat building  4,535  
Accommodation/property management systems 78 
Computer software  232 
Construction 12,846 
Transportation/logistics 554,807 
Total 977,673  
Source: Information provided by the Maldivian authorities. WT/TPR/S/332/Rev.1 • Maldives 
 
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  2  TRADE AND INVESTMENT REGIME 
2.1  Introduction 2.1.  Since the previous Review in 2009, Maldives  has been through a complex political transition 
period. Some changes were made in the legal and institutional framework for trade and 
investment, including new legislation or amendments on, inter alia,  customs valuation, public 
health, taxation, copyright and related rights, tourism, land lease and financial services, as well as the establishment of a Trade Facilitation Committee to advise on issues relating to the facilitation 
of trade and the ease of doing business in the country. 
2.2.  The graduation of Maldives from least developed country (LDC) status in 2011 and/or its 
classification as an upper middle income country by the World Bank have had some implications for preferential market access to certain major markets (e.g. Canada, China and the EU), some 
WTO commitments/benefits (e.g. TRIPS), and possibly the level of Official Development Assistance 
and technical assistance. Its involvement in regional trade agreements remains limited and unchanged; it is a party only to the South Asian Free Trade Agreement (SAFTA) and is about to 
launch negotiations for a free trade agreement with China. Despite a seemingly transparent 
legislative process and being a longstanding beneficiary of Trade-related Technical Assistance (TRTA), Maldives' poor record of WTO notificati ons and relative observance of tariff binding 
commitments remains virtually unchanged. 
2.3.  The foreign investment regime remains liberal; 100% foreign ownership is permitted in all 
sectors except for longline fisheries (since 2010) and retail trade and, as of 2014, the positive list of activities was replaced by a case-by-case revi ew of each application. In addition to the 2015 
constitutional changes opening land ownership to foreign investors, new investment incentives in 
Special Economic Zones (SEZs) applicable to both domestic and foreign investors, an equitable business profit tax (BPT) (replacing the unfavourable royalty regime), and dispute settlement 
guarantees were recently introduced.  
2.2  General Constitutional and Legal Framework 2.4.  Maldives is in the seventh year of a complex political transition to a multi-party democracy 
that involved, inter alia , political turmoil.
1 In July 2015, it amended its national constitution 
(ratified on 7 August 2008) to allow foreign ownership of land (sections 2.7 and 4.5.2), thus allegedly enhancing regional competition for influence over one of the busiest oceans in the world.
2  
2.5.  Under the 2008 Constitution, which separates the powers of the State between the 
legislative, judicial, and execut ive branches, the President is both chief of state and head of 
government. The Cabinet of Ministers is appo inted by the President and endorsed by the 
Parliament. The Cabinet formulates government  policy, annual budgets, and government bills, 
which must be submitted to the Parliament for approval. Furthermore, all bilateral and multilateral 
agreements need to be authorized and ratified by  the President on the advice of the Cabinet. The 
President is elected by direct vote for a five-year term (eligible for a second term); the election 
held on 7 September 2013 was annulled by the Supreme Court; a rerun of the first round was held 
                                               
1 Since the election of the first ever democratically  elected President in 2008, Maldives was confronted 
with a number of systemic political challenges, including an unexpected shift of power in early 2012 resulting from the resignation of the newly-elected President. Transparency Maldives (2014); World Bank (2014c); The 
Diplomat  article "Trouble in Paradise: Democracy Retreats  in the Maldives", 14 March 2015. Viewed at: 
http://thediplomat.com/2015/03/trouble-in-paradise-democracy-retreats-in-the-maldives/ ; and The Japan 
Times  article "Putting Maldives back on the democratic path", 26 May 2015. 
2 The amended article stipulates, inter alia,  that "allowing foreigners to own land under Article 302 does 
not undermine the Maldivian state's sovereignty over its te rritory and does not amount to loss of territory". "No 
part of the territory of the Maldives shall be used fo r foreign military purposes without the approval of the 
majority of the total membership of the People's Majlis." The Wire  article "Maldives Amends Constitution to 
Allow Sale of Islands to Foreign Nationals", 23 July 2015. Viewed at: http://thewire.in/2015/07/23/maldives-
amends-constitution-to-allow-sale-of-islands-to-foreign-nationals-7035/ ; and The Guardian  article "Maldives 
law 'selling' foreigners islands stokes Delhi's fears of rising Chinese role", 24 July 2015. Viewed at: 
http://www.theguardian.com/world/2015/jul/24/maldives-l aw-selling-foreigners-islands-stokes-delhis-fears-
rising-chinese-role . WT/TPR/S/332/Rev.1 • Maldives 
 
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  on 9 November 2013 and a runoff was held on 16 November 2013.3 The next election is to be held 
in 2018.  
2.6.  Legislative power remains vested in the 85-seat (since December 2013) unicameral 
Parliament or People's Majlis, whose members are elected by direct vote to serve five-year terms. 
Last elections were held on 22 March 2014 and the next are due in 2019.4  
2.7.  The judicial system remains based on Islamic law, with some English common law, mainly in 
commercial matters. The Supreme Court, which consists of the chief justice and five judges (as of 
2014), is the highest judicial authority; its member s are appointed by the President in consultation 
with the Judicial Service Commission – a separate ten-member body of selected high government 
officials and the public – and upon confirmation  by voting members of the People's Majlis.5 The 
Judicial Service Commission appoints all judges of subordinate courts, i.e. the High Court, the 
Criminal, Civil, Family, Juvenile, and Drug Courts, and the Magistrate Courts (on each of the 
inhabited islands).  
2.3  Trade Policy Formulation, Implementation, and Evaluation 
2.8.  The Ministry of Economic Development (MED) remains responsible for, inter alia,  the 
formulation of economic and trade policies in consultation and coordination with other Government stakeholders, the regulation of trade and investment (except for tourism), as well as the labour, 
maritime and land transport sectors.
6 The Ministry of Foreign Affairs assists the MED in its foreign 
dealings, which are mainly carried out through the country's missions abroad. Other ministries actively involved in trade and related policy formulation and implementation include those of Finance and Treasury, Tourism, and Fisheries and Agriculture. In 2015, a Trade Facilitation 
Committee, chaired by the MED, was established under  the MED to advise on issues relating to the 
facilitation of trade and the ease of doing busi ness in the country. The Committee replaced the 
2009 National Trade Policy Coordinating Committee.  The Maldives Customs Service (MCS), which 
has been an autonomous body since 2011 (previousl y under the Ministry of Finance and Treasury), 
is responsible for administering the tariff regime, customs procedures, and rules of origin.  
2.9.  Advice on economic policy continues to be provided by the Maldives Monetary Authority 
(MMA), the Ministry of Finance and Treasury, an d the MED. No independent body evaluates or 
advises the Government on trade and economic ma tters. An independent Auditor-General's Office 
(AGO) remains in place but, despite its high degree of autonomy and independence, its operations are apparently hampered by several difficulties.
7 As from 2011, a Business Council chaired by the 
Minister of Economic Development has deliberated on issues faced by the business community in 
the trading environment of the country.8  
                                               
3 Online information. Viewed at: 
http://www.theodora.com/wfbcurrent /maldives/maldives_government.html . 
4 Online information. Viewed at: 
http://www.theodora.com/wfbcurrent /maldives/maldives_government.html . 
5 Online information. Viewed at: 
http://www.theodora.com/wfbcurrent /maldives/maldives_government.html . 
6 Online Ministry of Economic De velopment information. Viewed at: 
http://www.trade.gov.mv/page/about-us . 
7 The AGO, an independent state organization resp onsible for auditing government organizations, 
government companies, and other bodies entrusted with  government revenues and assets, was created with 
the enactment of the Audit Act (No. 4/2007), and the first independent Auditor General was appointed in 
January 2008. Nevertheless, it seems that the effective implementation of its mandate is constrained by limitations of financial independence  and human resources capacity. His wo rk is hampered by cooperation and 
coordination difficulties with the inst itutions being audited, which often la ck necessary information and practice 
poor book-keeping. Transparency Maldives (2014). 
8 The following stakeholders are represented at th e Council: Maldives Association of Construction 
Industries; Maldives Association of Tourism Industries; Maldives Association of Travel Agents and Tour 
Operators; Maldives Seafood Processors and Exporters Association; Live Aboard Association of Maldives; 
Maldives National Chamber of Commerce and Industry ; Association of Lady En trepreneurs; Restaurant 
Association of Maldives; and individual members. Online Ministry of Economic Development information. Viewed at: http://www.trade.gov.mv/page/business-council . WT/TPR/S/332/Rev.1 • Maldives 
 
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  2.4  Trade Policy Objectives 
2.10.  During the review period, Maldives' development agenda has been ambitious, working to 
cement newly established democratic institutions and taking a leading role in international efforts on climate change.
9 The development of a comprehensive long-term national climate change 
adaptation strategy for Maldives could help mobilize grants and concessional loans.10   
2.11.  A 2013-2017 Manifesto contains several aspects of the Government's development strategy, 
comprising: youth as the foundation for developm ent; health for all; empowering women for 
development; education for a developed society; revival and continuation of the Islamic identity; 
housing for a comfortable life; infrastructure for a better future; tourism; wealth from fisheries; 
profit from agriculture; national security and social protection; energy for all; reliable transport; clean, unpolluted environment; the economy; rule of the people; and the future of the Male City 
Area.
11 Its priority actions for the year 2015 envisaged measures promoting youth as the 
foundation of development (the creation of 94,000 new jobs, the ban/restriction of foreigners in 
certain activities (e.g. sales, photography, divi ng, music bands), and loans), the empowerment of 
women (e.g. SME funding for female  employment), reliable transport services, and the adoption of 
economic measures in a number of areas including taxation, trade facilitation, credit guarantee schemes for SMEs, IPRs, and efficient governance.  
2.12.  Maldives' trade policy objectives remain unchanged and a National Development Strategy 
(2015–18) was being formulated by the Ministry of Finance and Treasury by end-October 2015. As 
in the last Review, despite its land constraints, climatic risks, and continued involvement in the economy, the Government sees further trade and economic liberalization as important means of 
promoting private-sector investment and developm ent, particularly in the tourism and fisheries 
sectors, thus reducing poverty and ensuring better living conditions.  
2.13.  As indicated in the previous Review, continued reform is required to create a level and 
competitive playing field between the State and priv ate sectors, so as to foster private-sector 
development.
12 The trade regime needs to be made more predictable, and investor confidence 
needs to be enhanced. Some efforts in this di rection were made during the review period 
(section 2.7). 
2.5  Main Trade Laws and Transparency 2.5.1  Legislation  2.14.  All legislative proposals must be presented to the Majlis as bills. They are debated by the 
relevant committee, which may introduce amendments or send it back unchanged to the Majlis to 
vote on. A simple majority, and the assent of the Pr esident, is required to pass a bill. All drafts of 
bills that have been presented to the Parliament, reports of parliamentary committees following 
the deliberation of bills, any amendments proposed to the bills, as well as the final draft of the bill 
passed by the Parliament are published on its website.
13 Legislation enters into force upon its 
publication in the public gazette, which is available online ( http://www.gazette.gov.mv/  and 
http://www.mvlaw.gov.mv/ ). Although translation of laws into English takes place only if the need 
arises, there seems to be a project for translating all laws and placing them online by the end of 
2016. The Consolidated Laws of Maldives, a recent initiative by the Attorney General, containing all Maldives' statutes translated into English, and a platform with bi-lingual search capabilities, 
LexisMaldives, are expected to be completed by the end of 2016.
14 Regulations enacted by 
ministries and departments have the effect of law;  they provide guidance on particular areas not 
addressed in the legislation. 
2.15.  The President ratified the WTO Agreement in March 2004, whereby it became law 
(section 2.6.1). The authorities indicated that the WTO Agreement is now fully implemented.  
                                               
9 World Bank (2014c). 
10 IMF (2015). 
11 Unofficial English translation of the Manifesto of the Progressive Party of Maldives (PPM) 2013–2017. 
12 WTO document WT/TPR/S/221/Rev.1, 5 November 2009. 
13 Transparency Maldives (2014). 
14 Ministry of Economic Development (2015b).  WT/TPR/S/332/Rev.1 • Maldives 
 
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  2.16.  During the review period, new legislation or amendments were passed on, inter alia,  
customs valuation, public health, the GST, the BP T, SEZs, copyright and related rights, tourism, 
financial services, and the airport service charge (Sections 3 and 4). Bills to be passed relate to electricity and telecommunications activities. The main law governing trade is the Export and 
Import Law 1979 (31/79), which stipulates the conditions and procedures for the export and 
import of goods (Table 2.1).  
Table 2.1 Main trade-related legislation, 2015
 
Title of legislation 
Export and Import Law, 1979 (No. 31/79) 
Tourism Act, 1999 (No. 2/99) 
Law on Public Utilities: electricity distribution, telecommunication provision, water distribution, sewerage 
systems, 1996 (No. 4/96)  
Import and Sale of Pharmaceutical Drugs, 1975 (No. 75/78) 
Contract Law, 1991 (No. 4/91) 
Mortgage Law, 1993 (No. 9/93) 
Law on Leasing Uninhabited Islands for Developing Tourist Resorts, 1994 (No. 3/94) 
Law on Bills of Exchange, Cheques and Promissory Notes, 1995 (No. 16/95) 
Foreign Investment Law, 1979 (No. 25/79) 
Law on Outlets Selling Imports and Food Serving Outlets, 1978 (No. 60/78) 
Consumer Protection Law, 1996 (No. 1/96) 
Law on Prohibited Imports, 1975 (No. 4/75) 
Partnership Law, 1996 (No. 9/96) 
Companies Law, 1996 (No. 10/96) 
Environment Protection and Preservation Act, 1993 (No. 4/93) 
Cooperative Societies Act (No. 3/2007) 
Business Registration Law, 2014 (No. 18/2014) 
Sole Proprietorship Law, 2014 (No. 19/2014) 
Source: Maldives' authorities. 
2.17.  No comprehensive regulatory reform or plans exist in this area. No estimate of the cost of 
regulatory barriers to the Maldivian economy and benefits of removing them has been done. However, in 2013, preliminary recommendations in specific investment climate areas in a reform 
memorandum prepared by the World Bank Group members noted that its Doing Business 
indicators (section 2.7) pointed to areas where the private sector could benefit from simplification 
of the regulatory burden or stronger legal protections. Their recommendations focused, inter alia,  
on strengthening the regulatory and institutional framework in Maldives.
15 
2.5.2  Transparency 
2.18.  Lack of transparency, and thus lack of pub lic accountability, creates scope for administrative 
discretion and therefore corruption. Maldives' deve lopment strategy put significant emphasis on 
improvements in governance and public admini stration. The Prevention and Prohibition of 
Corruption Act of 2000 provides for the criminalization of corruption offenses. Maldives acceded to the United Nations Convention against Corruption (UNCAC) on 22 March 2007.
16 According to the 
authorities, the accession to the UNCAC has the same effect as ratification. A review of the 
implementation of Chapters 3 (Criminalization) an d 4 (International Cooperation) of the UNCAC in 
Maldives was done in 2015, and the process of finalizing the relevant report was ongoing at end-October 2015. The Anti-Corruption Commission (ACC), which was established in October 2008 
to, inter alia , investigate corruption offenses, has expressed serious concerns about the high levels 
of systemic corruption.
17 Between 2011 and 2014, the number of cases investigated by the ACC 
increased from 409 to 783. As part of its Strategic Plan (2015-2019) the ACC drafted a National 
Integrity Plan (NIP), a preventive mechanism to counter corruption by raising integrity, 
                                               
15 International Finance Corporation/Multilateral Investment Guarantee Agency/World Bank (2013).  
16 Online information. Viewed at: http://www.unodc.org/unodc/tre aties/CAC/signatories.html . 
17 According to the Global Corruption Percepti on Index (CPI) 2011, published by Transparency 
International, Maldives was ranked amongst the most corrupt countries in the Asia Pacific region, i.e. 134th out 
of 182 countries (143rd out of 178 countries in 2010); since then, th e country has not figured in the CPI in 
2012 or 2013, due to an alleged lack of data. Transparency Maldives (2014). WT/TPR/S/332/Rev.1 • Maldives 
 
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  transparency and accountability, which was to be launched on 9 December 2015, International 
Anti-Corruption Day. Action was also taken to address corruption in government procurement practices (section 3.4.5). 
2.19.  Despite being a longstanding beneficiary of TRTA (section 2.6.1) from the WTO and other 
organizations, the state of play of Maldives' WTO notifications and observance of tariff bindings 
commitments has remained virtually unchanged since the last Review (sections 3.2.4.3, 4.2.2.4 and 4.3.3). Whereas in the course of the previous  review period (2003-09) no notifications were 
submitted to the WTO, a single submission notification relating to the Law on Copyright and 
Related Rights (Law No. 23/2010) was made since 2009.
18 Furthermore, apart from some tariff-
related Integrated Data Base submissions (last made in 2011), no notification has ever been 
submitted in areas such as customs valuation, state trading, technical barriers to trade (TBT), 
sanitary and phytosanitary (SPS) measures, where Maldives maintain relevant measures.19 
According to the authorities, the main reasons for non-submission of WTO notifications are the lack 
of both human resources capacity and knowledge in notification matters as well as the outcome of 
institutional restructuring (section 2.3) that deprived agencies of staff already trained in this area.  
2.6  Trade Agreements and Arrangements 2.20.  Maldives graduated from the LDC category on 1 January 2011.
20 As indicated at its previous 
Review, the loss of this status implies an eventual phasing out of LDC-specific international 
support, such as preferential market access, prio rity in Official Development Assistance (ODA) 
allocation and special eligibility for technical and financial assistance, as well as modification of certain LDC-specific WTO commitments or benefits (sections 2.6.1, 2.6.2, 2.6.3, and 2.6.4).
21 
According to the relevant United Nations committee, although the international community 
adopted provisions to phase out some LDC-specific support measures in an orderly manner, overall, during the first 11 months of graduation no visible sign of reversal in country's 
development progress due to an abrupt with drawal of support had been detected.  
2.6.1  Multilateral agreements 2.21.  Maldives, an original Member of the WTO and a former GATT contracting party, accords MFN 
treatment to all WTO Members and is eligible for "special and differential treatment" under WTO 
rules. Its trade policies have already been review ed twice; the last Review took place on 26 and 
28 October 2009. Maldives has neither accepted the WTO Trade Facilitation Agreement (TFA) nor requested technical assistance in the compliance-related area of the Agreement yet; as of 
end-October 2015, the preparation of the notifica tion of TFA provisions to be implemented 
immediately upon its entry-into-force and the work for launching the process of its ratification were underway.
22 Maldives has never been a party to any disputes under the WTO Dispute 
Settlement Mechanism.  
2.22.  As from the date of its graduation, Maldives has no longer been eligible for LDC treatment in 
areas such as the transition period for implemen ting the TRIPS Agreement, and the preferential 
tariff treatment available to goods and services originating in LDCs.23 Maldives notified its new 
TRIPS implementing legislation to the TRIPS Council in 2012. The review of this legislation was 
                                               
18 This notification under Article 63.2 of the WTO TRIPS Agreement covered the Law on Copyright and 
Related Rights (Law No. 23/2010). WTO documents IP/N/1/MDV/1, 17 October 2011; and IP/N/1/MDV/C/1, 19 October 2011.  
19 WTO document G/MA/IDB/2/Rev.41, 20 May 2015.  
20 Following the devastation caused by the Indian Ocean tsunami of 26 December 2004, graduation 
became effective after a longer than expected tran sition period, i.e. seven years after having been 
recommended. United Nations document CDP2012/PLEN/12, Note by the CDP Secretariat on Maldives for the Committee for Development Policy Expe rt Group Meeting, Review of the li st of Least Deve loped Countries, 
16-17 January 2012. Viewed at: http://www.un.org/en/development/desa/policy/cdp/ldc_documents/maldives_monitoring_report_2012.pdf . 
21 WTO document WT/TPR/S/221/Rev.1, 5 November 2009. 
22 The Special and Differential Treatment provisions of the Agreement allow each developing country to 
determine when they will implement each of the individual provisions as well as those provisions for which they will need technical assistance and support for capacity building in order to implement. Online information. 
Viewed at: https://www.wto.org/english/tratop_ e/tradfa_e/tradf a_agreeacc_e.htm . 
23 WTO online information. Viewed at: 
https://www.wto.org/english/tr atop_e/devel_e/dev_special_d ifferential_provisions_e.htm , and document 
WT/TPR/S/221/Rev.1, 5 November 2009. WT/TPR/S/332/Rev.1 • Maldives 
 
- 25 - 
 
  initiated at the TRIPS Council's meeting in June 2012, and was completed in March 2013 
(section 3.4.9).24 As of end-October 2015, the MED wa s translating the Trade Mark and the 
Geographical Indicators bills into the local language prior to their submission to Parliament.  
2.23.  During the review period, the WTO Secretariat remained the largest provider of TRTA and 
capacity-building activities to Maldives.25 In 2010 and 2011, Maldives submitted four requests for 
technical assistance and capacity-building in the areas of trade and development, customs 
valuation and trade facilitation, SPS and TBT, and trade in services. As a result, two national 
activities on customs valuation (2011) and SPS and TBT (2012) involving 44 participants were 
organized in the country. Between 2009 and 2015, Maldives was invited to 261 TRTA activities abroad (global, regional and national) and on line (e-learning); 113 officials/stakeholders 
participated in 54 of them, in areas such as ma rket access, Aid for Trade, trade facilitation, 
government procurement, intellectual property ri ghts, trade and environment, public health, SPS, 
agriculture, trade in services, and Doha De velopment Agenda issues. In 2012, Maldives 
participated in two Islamic Development Bank conferences covering, inter alia,  dispute settlement 
and non-agricultural market access negotiations issues. As of September 2015, Maldives had not 
requested the organization of any new national TRTA, and it was to be invited to ten technical assistance activities covering, inter alia,  dispute settlement, agriculture, and SPS transparency 
matters. Following the Enhanced Integrated Framework (EIF) Board Decision in July 2010, 
Maldives was granted an automatic extension of full EIF benefits after graduation from LDC status until December 2015.
26  
2.6.2  Regional agreements 
2.24.  Maldives remains a member of the South Asian Free Trade Area (SAFTA), which entered 
into force in January 2006, and was notified to the WTO under the Enabling Clause in April 2008.27 
Under SAFTA, India, Pakistan and Sri Lanka were re quired to reduce their customs tariffs to 20% 
by January 2008, while the LDC members (Bangladesh, Bhutan, Maldives and Nepal) were 
required to reduce theirs to 30% (section 3.2. 4.5). Furthermore, India, Pakistan and Sri Lanka 
were required to reduce their tariffs on imports from LDC members to 0-5% by January 2009, 
while LDC members were required to do the same by January 2016.28 SAFTA provides a 
compensation mechanism for LDC members' revenue losses resulting from the lowering of tariffs, as well as technical assistance to them. The authorities indicated that Maldives has not yet been a beneficiary of this mechanism.  
2.6.3  Bilateral agreements 
2.25.  Maldives' only operational bilateral trade agreement continues to be with India. The 
agreement does not provide any tariff preferences in either direction. However, it does allow 
Maldives to import certain products from India, the export of which is otherwise not permitted; 
these products include river sand, eggs, potatoes and onions. On 8 September 2015, a Memorandum of Understanding on Launching the Negotiation of the China-Maldives FTA (free 
trade agreement) was signed; the authorities in dicated that a first meeting was scheduled for 
November 2015.
29 At the time of the previous Review, Maldives was negotiating FTAs with 
                                               
24 WTO documents IP/C/M/70, IP/C/M/71, 12 February 2013; IP/C/M/72, 13 May 2013; and 
IP/Q/MDV/1, 13 February 2013. 
25 WTO online TRTA database. Viewed at: http://wtotrta/Public/ContryProfile.aspx?CountryId=74 . 
26 Maldives' Tier 1 support to the National Implementation Arrangements ("NIAs") project has been 
under implementation since January 2011. It has benefited from a two-year extension until 2017 and its funding has been secured. The first Tier 2 project on tr ade facilitation, which relates to the implementation of 
ASYCUDA+ and the aviation sector, was approved by th e EIF Board on 30 May 2013. Operationalization of the 
project is underway with the signing of the MOU with th e United Nations Office for Project Services (UNOPS) on 
5 August 2013. Online information. Viewed at: http://www.enhancedif.org/en/country-profile/maldives . 
27 SAFTA covers trade in goods only. Its member St ates are Afghanistan, Bangladesh, Bhutan, India, 
Maldives, Nepal, Pakistan and Sri Lanka. More information on SAFTA is available online at: http://saarc-
sec.org/areaofcooperation/detail.php?activity_id=5  and 
http://rtais.wto.org/UI/PublicShowRTAIDCard.aspx?rtaid=188 . 
28 The SAFTA Agreement stipulates that "notwithstanding  the potential or actual graduation of Maldives 
from the status of a Least Developed Country, it shall be accorded in this Agreem ent and in any subsequent 
contractual undertakings thereof trea tment no less favourable than that  provided for the Least Developed 
Contracting States". 
29 Online Ministry of Commerce of China FTA Network press release Chinese Vice Minister of Commerce 
Gao Yan Visits Maldives and Attends the 2nd Meeting of China-Maldives Joint Committee of Economy and WT/TPR/S/332/Rev.1 • Maldives 
 
- 26 - 
 
  Sri Lanka and Qatar but no update was available with the authorities in the context of the current 
TPR.  
2.6.4  Generalized System of Preference s (GSP) and other unilateral preferences 
2.26.  Maldives continued to receive preferential tariff treatment as a developing country under the 
GSP schemes of Australia, Belarus, Iceland, Ja pan, Kazakhstan, New Zealand, Norway (LDC 
treatment), Russian Federation, Switzerland,  Turkey, and the United States (as from 
1 January 2010).30 As from 1 January 2015, it has been ex cluded from the schemes of Canada and 
the European Union, a market of great importance mainly for canned tuna exports (section 1.6).31 
Similarly, as from 1 January 2014, no zero tariff treatment has been available to Maldives' exports 
to China. Prior to its graduation out of the EU GSP (due to having achieved a sustained higher level of economic development), Maldives' exports in pa rticular benefited from duty-free access to the 
EU market under the "Everything but Arms" (EBA) arrangement until the end of 2013. Maldives 
was given a three-year transition period following its graduation out of the LDC status in 2010 until the end of 2013 to benefit from the advantages of  the EBA and, as of 2014, it was shifted to the 
general GSP preferences..
32  
2.7  Foreign Investment Regime 2.27.  Maldives continues to operate a liberal foreign investment regime, as reflected by its top 
ranking in the region's FDI inflows as a shar e of GDP (5%) and its diverse spectrum of 
contributors. However, during the review period, its position in terms of ease of doing business 
dropped significantly, seemingly due to the introduction of the BPT and the GST in 2011 
(section 3.4.2).
33 The Government acknowledges the importance and contribution of foreign 
investment to economic development and job creation, and permits foreign investment in virtually 
all sectors of the economy (see below). It intends to pursue an ambitious reform agenda in several areas, including business and property registration, access to credit (e.g. secured transactions), 
the protection of minority shareholders, trade logistics, the resolution of commercial disputes, and 
the insolvency regime.
34 The authorities are keen to develop new labour-intensive sectors, such as 
off-port shipping services, information technology, and financial services, in order to reduce 
dependence on tourism (section 1.1). A more favourable business climate has the potential to 
boost competitiveness and improve firms' growth and productivity.  
2.28.  Achieving the Government's goal of diversifying the economy requires continued 
improvements to the investment climate.35 During the review period, action was taken to address 
criticism over and weaknesses of the FDI regime by creating an increasingly favourable investment 
environment.36 Although no changes were brought to the main legislation governing foreign direct 
investment, the maximum period for leasing an island was extended up to 99 years as of 
April 2015, and the Constitution was amended in Ju ly 2015 to allow foreign nationals and entities 
                                                                                                                                               
Trade , 15 September 2015. Viewed at: 
http://fta.mofcom.gov.cn/enarticle/chi namedfen/chinamedfennews/201509/28480_1.html . 
30 Between September 1995 and 2009, Maldives was suspended from eligibility for trade benefits under 
the United States GSP programme. UNCTAD (2015a); and Un ited States International Trade Commission online 
information. Viewed at: http://www.usitc.gov/research_and_analysis/tradeshifts/2012/usimport.htm . 
31 Maldives was classified by the World Bank as an upper-middle income country in 2011, 2012 and 
2013. European Commission Delegated Regulation (European Union) No. 1421/2013 of 30 October 2013 amending Annexes I, II and IV to Regulation (Europ ean Union) No. 978/2012 of the European Parliament and 
of the Council, applying a scheme of generalized tariff preferences; Canada Gazette, Part II, Vol. 147, No. 21 (2013).  
32 Maldives Monetary Authority (2015a). 
33 In 2015, the World Bank ranked Maldives 116th (out of 189 economies) or 3rd (out of 8 South Asian 
economies) for overall ease of doing busi ness, a significant drop compared to 69th (out of 181 countries) in 
2009. Online information. Viewed at: http://www.doingbusiness.org/rankings ; The International Bank for 
Reconstruction and Development/The World Bank (2008); and World Bank (2014b). 
34 World Bank (2014b). 
35 International Finance Corporation/Multilateral Investment Guarantee Agency/World Bank (2013).  
36 In 2013, this criticism referred to inconsistent  government policies surrounding the investment 
environment, the lack of comprehensiv e guidelines or regulations for foreig n investors, the lack of clarity in 
Maldivian business laws, the slowness of the judicial system, and the work permit  (annual) renewal system. 
Ministry of Tourism Arts and Culture (2013); an d Ministry of Economic Development (2015b).  WT/TPR/S/332/Rev.1 • Maldives 
 
- 27 - 
 
  the right to own freehold land, including entire islands (sections 2.2 and 4.5.2).37 Foreign 
investment continues to be governed by the Law on Foreign Investments in the Republic of Maldives (25/79).
38 The Law provides for an agreement between the Government and the foreign 
investor and stipulates the terms and conditions and implementation of the agreement. It also 
provides for, inter alia : an investment guarantee, dispute settlement and arbitration procedures, 
100% foreign ownership, and unrestricted repatriation of profits. In general, the business-related laws apply equally to both local and foreign investment businesses registered in Maldives.  
2.29.  During the review period, the positive list  of activities was eliminated and the Business 
Registration Act 2014 allows foreigners to engage in professional services (law, healthcare, accounting, taxation, and financial services) as well as wholesale trade, in addition to tourism.
39 
Foreign investors in activities other than professional services are required to participate in a 
business with a capital exceeding US$1 million and make a security deposit of US$100,000 to an 
agency determined by the Government. No foreign investment is allowed in small business or any kind of retail trade; the same applies to lo ng line fisheries since 2010 (section 4.2.1.3.1). 
2.30.  Several changes were made to the investment approval and registration procedures. Under 
the Business Registration Act (No. 18/2014), as from 2014 all foreign investments have been registered by MED's Business Registration Section.
40 Prior to registration, all foreign investment 
applications and related documentation (e.g. authorizations from agencies in charge of the 
investment activity) must be submitted to the MED's Business Registration Section and then forwarded to a review committee for approval.
41 The standard processing time is 3 working days; 
however, a maximum of 10-14 days may be requ ired for cases where further clarification is 
needed. All applications approved by the review committee, except for those in tourism that are 
dealt with by the relevant agency due to its sectoral specificity, receive a foreign investment approval letter and a draft foreign investment ag reement (FIA) requiring the submission of the 
necessary documents for registration in Maldives.
42 All applicants, except those who engage in the 
tourism sector, are required to pay an administrative fee of US$2,000 to the Maldives Inland Revenue Authority prior to signing their FIA. The application for registering a company or 
partnership is processed within two days. Once the registration certificate is issued and the FIA is 
entered into force, the company may commence business in accordance with the applicable laws and regulations. No data on the approval or rejection of foreign investment applications were available with the authorities.  
2.31.  All incentives apply equally to foreign and domestic investments and depend on the scale of 
the investment. For example, investments in exce ss of US$2 million are allowed duty-free imports 
of machinery, capital goods, and construction materials for two or three years (new investment), 
while for expansion of existing investment, the duties may be waived for a maximum of three 
years (investment value from US$2 million to US$25 million), five years (investment value from US$25 million to US$50 million) and seven year s (investment value from US$50 million to 
US$75 million) (section 3.2.4.4). Under the Special Economic Zones Act No. 24/2014, new tax 
incentives were introduced to encourage investment in several activities (section 3.4.2.3). Investors are also permitted to employ foreigners where suitably skilled Maldivians are not available.  
                                               
37 Now a foreign party that invests more than US$1 bi llion in a project can be granted freehold in the 
area designated for the project provided that, upon completion, "at least 70% of the land [has] been reclaimed from the ocean and visible at medium tide". The Wire  article "Maldives Amends Cons titution to Allow Sale of 
Islands to Foreign Nationals", 23 July 2015. Viewed at: http://thewire.in/2015/07/23/maldives-amends-
constitution-to-allow-sale-of-islands-to-foreign-nationals-7035/ . 
38 For details on the Law on Foreign Investments in the Republic of Maldives (No. 25/79), see WTO 
document WT/TPR/S/110, 13 December 2002. 
39 Business Registration Act (No. 18/2014). Viewed at: http://nasheedanil.co/wp-
content/uploads/2014/09/Business-Registration-Act-Translation.pdf . 
40 Previously, tourism-related investment was registered  and licensed by the Ministry of Tourism, while 
all other investment had to be register ed and licensed by the Foreign Invest ment Services Bureau (FISB) of the 
MED. The positive list of investment projects was e liminated. The 2014 Act repealed the Act on Doing Business 
in Maldives by Foreign Nationals, 1979 (No. 4/79). WTO document WT/TPR/S/221/Rev.1, 5 November 2009. 
41 More information on investment related procedures and matters is available at  Ministry of Economic 
Development (2015a).  
42 Under the Business Registration Act 2014, the investor is re quired to register either as a company or 
a partnership before carrying on business in Maldives. There is also an option for over seas entities to register 
as the overseas branch of a foreign incorporated co mpany in Maldives. Ministry of Economic Development 
(2015b).  WT/TPR/S/332/Rev.1 • Maldives 
 
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  2.32.  As of 18 July 2011, the BPT, inter alia,  replaced the foreign investment royalty regime that 
discriminated against foreign investors (section 3.4.2). Furthermore, Article 15(b) of the legislation establishing the tax allows for total exemption for foreign investors for a certain period provided that the investment is in priority sectors pr omoted by the Government (e.g. public-private 
partnership (PPP) and renewable energy), covered by  an FIA citing the exemption term, or in the 
context of SEZs (section 3.4.2.3 and Table 3.4).
43 
2.33.  As there was no personal or corporate income tax in Maldives (except for business tax on 
banks) until 2011 when the BPT and the withholding tax were introduced, the country did not 
negotiate bilateral tax treaties to relieve international double taxation of income (section 3.4.2). To date, only one limited multilateral agreement between members of the SAARC for avoidance of double taxation and mutual assistance in tax matters has been signed on 13 November 2005 (last 
amended on 19 April 2010) by Maldives.
44 As of end-October 2015, double taxation avoidance 
agreements (DTAAs) with Sri Lanka, Qatar, Cura çao and the United Arab Emirates were being 
negotiated. At the same time, a first round of ne gotiations for a DTAA covering international air 
transport with India was concluded, and a similar one with Bangladesh was under consideration. 
Maldives has no bilateral investment treaties. Under an Arbitration Act based on the UNCITRAL Model Law that came into force in June 2013, foreign arbitral awards are now directly enforceable 
in Maldives through application to the High Court.
45 A regulation on the procedures for making 
such an application to the High Court was passed and published in the official gazette in December 2013. 
                                               
43 Until 2011, all foreign investments registered in Maldives were required to pay an annual royalty to 
the Government that was set at a much  higher rate for joint ventures wi th a majority Maldivian share. WTO 
document WT/TPR/S/221/Rev.1, 5 November 2009.  
44 Online Maldives Inland Revenue Authority information. Viewed at: 
https://www.mira.gov.m v/Tax_Treaties.aspx . 
45 Maldives is not yet a party to the 1958 New York Convention on the Recognition and Enforcement of 
Foreign Arbitral Awards, although the matter of acceding to the convention was before the Parliament in 2013. Jones Lang LaSalle/Ashurst (2014). WT/TPR/S/332/Rev.1 • Maldives 
 
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  3  TRADE POLICIES AND PRACTICES BY MEASURE 
3.1  Introduction 3.1.  Maldives' trade policy has been through substantial changes in certain areas since the last 
TPR in 2009. In addition to a unilateral tariff li beralization initiative, policy developments have 
taken place in areas such as customs legislation, taxation, economic zones, and intellectual 
property rights protection. 
3.2.   The tariff remains one of Maldives' main trade policy instruments but its predominance as a 
source for government revenue has declined substant ially with the introduction of new taxes. As a 
consequence of a 2011 unilateral MFN tariff liberalization initiative eliminating tariffs on about 31.5% of tariff lines, the average applied MFN tariff rate dropped from 21.4% in 2008 to 13.9% in 2015. Agricultural products continue to face lower tariff rates (averaging 11.3%) than 
non-agricultural items (WTO definition) (14.3%). The peak ad valorem  rate was doubled to 400% 
(plastic bags, and polythene film and sheets). Th e introduction of the HS2012 tariff nomenclature 
resulted in 7% fewer tariff lines. The tariff structure has become slightly more complex owing to 
the increase in the number of applied MFN rates which, in 2015, stood at 13 (zero, 5%, 10%, 
15%, 20%, 25%, 35%, 50%, 100%, 150%, 200%, 400%, one specific duty) compared to 11 in 2009. For most activities, the tariff is characterized by some level of de-escalation between 
unprocessed and semi-processed products, and escalation to fully processed goods, which means 
that effective rates of tariff protection can be considerably higher than nominal rates. As of end-October 2015, the Maldives Customs Service ma intained an online tariff containing only 
6,422 "active" tariff lines for customs declaration purposes that could provide scope for 
administrative discretion. The fact that 94.9% of tariff lines are bound, imparts a degree of 
predictability to the tariff. However, the simple average of bound MFN rates could considerably exceed the average applied MFN rate (possibly by about 24 percentage points), providing the 
authorities with extensive scope for increasing applied tariffs within bindings. Furthermore, similar 
to the last TPR, applied MFN tariff rates appear to  exceed bound rates on some 323 tariff lines, of 
which 271 were on manufactured products. As Maldives' tariff Schedule of Concessions is based on 
the HS2007, it is difficult to accurately compare its bindings' status with the currently applied 
HS2012 tariff schedule, thus making the transposition of binding commitments to HS2012 another pressing task.  
3.3.  During the review period, trade facilitation improvements included the introduction of a fast 
clearance channel for imports, and the launching of the internal process to ratify the WTO 
Agreement on Trade Facilitation. New customs legislation in 2011 allowed for the implementation of provisions of the WTO Agreement on Customs Valuation; the transaction value is now used in a 
large majority of cases as the valuation basis.  
3.4.  Import licensing continues to apply to all imports, and an ad valorem  fee is collected for the 
issuance of licences. Import restrictions and prohibitions on various items for, inter alia , religious, 
health, safety, security, and environmental reas ons have remained generally unchanged. There 
has been no major change in the area of standards and other technical requirements. Labelling requirements for pre-packaged food, food import s, tobacco products and breast-milk substitutes 
have been updated. No legislation on contingency measures is in place.  
3.5.  Export duties levied on fish products (royal ties) were replaced by the BPT indirect tax as from 
2012, while a 50% duty on the f.o.b. value of ambergris exports was retained for revenue purposes. No changes were made to export prohib itions, restrictions, or the licensing regime. As 
from 2014, incentives involving, inter alia,  temporary BPT exemption have been provided for the 
establishment of SEZs, including for export processi ng, but no such Zone has yet been established.  
3.6.  Domestic support is provided mainly through tax and non-tax incentives (e.g. direct 
payments), some of which are available to sector-s pecific activities, e.g. the fisheries, agriculture 
and energy sectors. State involvement in the economy, including in trading activities (e.g. MIFCO, and the State Trading Organization (STO)), remain s prevalent in numerous sectors (e.g. fishing, 
public utilities, finance, telecoms, transport, and tourism). Despite the absence of privatization 
action during the review period, the authorities promoted joint ventures between 
government-owned companies and private sector stakeholders and, in 2013, they passed legislation on the procedures for the privatization, corporatization, monitoring, evaluation and WT/TPR/S/332/Rev.1 • Maldives 
 
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  introduction of shares of state-owned properties to the stock exchange. No major changes were 
made in the government procurement framework, a non-signatory to the WTO Plurilateral Agreement on Government Procurement; in addition to the possibility of restricting bids to domestic suppliers, local firms may be granted up to a 7.5% margin of preference in the 
evaluation of bids.  
3.7.  The passing of a Copyright and Related Rights Act in 2010 has been a major development in 
the protection of intellectual property rights (IPRs), and the preparation of draft legislation on 
patents, industrial designs, trademarks and geographical indications is underway. Maldives 
remains a non-signatory to any of the treaties administered by the World Intellectual Property Organization, and protection enforcement is we ak. Competition and bank ruptcy and insolvency 
legislation remain at the drafting stage, although a sector-specific legislation is in place for 
telecommunications. Rice, flour and sugar have to be sold at an officially set price.  
3.2  Measures Directly Affecting Imports 3.2.1  Registration, document ation, and customs clearance 
3.8.  Since 2009, there has been no major change  in the requirements for importing goods into 
Maldives. The main documents required for customs clearance include: the import licence; the declaration form; the original commercial invoice; the packing list; and the bill of lading or airway 
bill. Other documents, such as a sanitary and phytosanitary certificate or a certificate of origin, 
may be required where applicable. Additional documents are required for food imports.
1  
3.9.  It is not mandatory to use the services of a licensed customs broker for the clearance of 
commercial imports, although the majority of busi nesses have recourse to one. The profession is 
restricted to individuals trained by the Maldives Customs Service (MCS) and holding a licence. As 
of July 2015, there were 52 licensed customs broker s. Customs brokers pay a registration fee of 
Rf 500 and an annual licence fee of Rf 3,500.  
3.10.  The enforcement of border protection laws, including customs procedures, is under the 
responsibility of the MCS, which has nine regional offices located across the country. In 2013, nearly 90% of imports were cleared in the Male region (Male's commercial harbour, the Ibrahim 
Nasir International Airport, or the post office). 
3.11.  Maldives is to complete the internal process necessary to ratify the WTO Agreement on 
Trade Facilitation (section 2.6.1). No specific time-frame was indicated by the authorities. 
3.12.  Since January 2000, Maldives has been using the ASYCUDA++ version of the Automated 
System for Customs Data for its customs administration. Migration to ASYCUDA World is expected 
to be completed by mid-2016.
2 Registered traders may submit their declarations to the system 
through the Electronic Data Interchange (EDI) or the Direct Trade Input (DTI). Maldives is in the 
process of establishing a paperless trading enviro nment and, as such, the requirement to submit 
paper copies has been abolished. As of end-Oc tober 2015, approximately 50% of declarations 
submitted that year were lodged online. According to estimates from the MCS, customs procedures 
(from the lodgement of the declaration to the rele ase of the cargo) take on average two days for 
shipments arriving through the airport, and five days for shipments arriving through the commercial harbour. 
3.13.  As part of efforts to establish a paperless trading environment, the authorities are working 
towards the development of a Single Window for trade facilitation. The legal framework is 
expected to be in place by end-2015. Obtaining the needed funding to support other agencies in 
the automatization of their processes is indica ted by the authorities as the main challenge. 
                                               
1 Maldives Food and Drug Authority's (MFDA)  announcement No. IUL 23-AP/01/2010/252 clarifies 
documentation requirements for food im ports. For meat, meat products, fish and fishery products, a certificate 
of origin and a health certificate (veterinary certificate or certificate of condition from the competent authority of the exporting country) are required. In the case of eggs, egg products, dairy prod ucts and packaged foods, 
the importer must provide a certificate of origin indica ting the country and district of production of such 
products.  
2 The migration to ASYCUDA World is being implemented as pa rt of an EIF (Tier 2) project approved in 
May 2013. WT/TPR/S/332/Rev.1 • Maldives 
 
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  3.14.  Maldives does not require a preshipment inspection.3 Physical examination is carried out on 
a risk-assessment basis. High-risk items include: products with a misclassification history; products subject to restrictions and controls; duty exempted goods; and products that are subject to high duty rates. A database on such products is maintained internally by the MCS. In general, 
perishable items are less likely to be inspecte d. Approximately 25% to 30% of consignments are 
physically inspected. 
3.15.  In 2013, the MCS introduced a fast cleara nce channel with a view to providing a more 
convenient and speedier service for eligible importers and exporters. The eligibility is based on the 
trader's compliance history and the nature of the consignment. Low value and low duty rate items 
are generally eligible. The channel includes: an express service for document processing (declarations are not checked in detail); a customs portal and information kiosks, allowing traders 
to check the status of their declaration and submit additional documentation online; and a 
pre-payment system, enabling traders to make online payments and request release order/selectivity immediately thereafter. According to the authorities, goods eligible for the fast 
clearance channel can be cleared in less than three hours. Other trade facilitating measures 
include a pre-arrival declaration processing service; an online manifest submission system; a simplified customs declaration process for individu als; and the possibility of deferred payment for 
perishable cargo (for eligible traders).  
3.16.  Despite these trade facilitation initiatives, delays in the processing and clearance of goods 
are still relatively high. According to World Bank 2015 Doing Business data
4, in 2015 Maldives 
ranked 137th out of 189 economies in ease of trading across borders (126th out of 181 economies 
in 2009). Documentary compliance for imports takes an estimated average of 61 hours. The 
authorities are of the view that these indicators do not accurately reflect the situation. Time release studies by the MCS concluded an average of two to five days (although this does not cover 
port/airport delays). 
3.17.  Maldives is a member of the World Customs Organization. It is expected to accede to the 
International Convention on the Simplification and Harmonization of Customs Procedures (Kyoto 
Convention) in June 2016. According to the author ities, about 70% of processes and procedures 
are in compliance with the revised Kyoto Convention.  
3.2.2  Customs valuation 3.18.  With the adoption of the Maldives Customs Act in 2011, valuation of goods is, in principle, 
determined in accordance with the principles and provisions of the WTO Agreement on Customs 
Valuation. Imports are valued at their c.i.f. price, or the cost and freight charges price if the goods are not insured. The main valuation method is the transaction value of goods, and is based on the 
price actually paid or to be paid by the buyer. In a large majority of cases (94% of declarations 
processed in 2014), the value declared by the import er is accepted as the transaction value. When 
the declared value is rejected, the authorities adjust the value using reference prices (which are 
based on historical information). The importer may accept the raised value, submit additional 
documentation, or request a re-assessment. The authorities indicated that, in most cases, the 
importer submits additional documentation. 
3.19.  Appeals against customs decisions can be  brought, in the first instance, to the MCS 
valuation sub-committee (in the case of valuation-related complaints) or to the Appeal Committee 
(for any other type of appeal). If the trader is no t satisfied with the decision of the appeal process, 
he can file a case at the judicial courts within six months of the appeal decision. In 2014 and 2015, 
44 appeal cases were brought before the Appeal Committee, of which 27 were related to valuation.  
3.20.  Under-valuation (or non-declaration) is the most frequent violation. It affects high duty rate 
items such as cigarettes, and high value items such  as mobile phones. The legislation provides for 
fines ranging from 25% for the first instance of offense, to 50% for the third instance and any 
subsequent occurrence (within two years from the ti me of the first offence). In addition, the MCS 
may seize the licence of the offending person. The authorities indicated that there are few cases of smuggling. However, the smuggling of  narcotics is a serious problem.  
                                               
3 WTO document G/PSI/N/1/Add.8, 28 September 1999. 
4 World Bank (2015a); and World Bank (2009). WT/TPR/S/332/Rev.1 • Maldives 
 
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  3.21.  Lack of proper documentation is another major challenged faced in the process of customs 
valuation. The authorities indicated that informal business practices are still prevalent and it is common that importers visit the exporting countries and pay in cash. 
3.22.  Maldives has neither submitted notifications on its legislation nor replied to the checklist of 
issues as required by the WTO Agreement on Customs Valuation.
5 
3.2.3  Rules of origin 3.23.  Maldives does not maintain any non-preferential rules of origin.
6 Preferential rules of origin 
apply to imports under the South Asian Preferential Trade Arrangement (sections 2.6.2 and 
3.2.4.5). The main requirement for goods to be elig ible for SAPTA preferences is that it be wholly 
produced or obtained in the territory of a member.7 Goods not wholly produced or obtained are 
subject to domestic value addition criteria (at least 30% of the f.o.b. value) or a change in the 
tariff heading (HS 4-digit level). Product-specific rules involving a combination of these two criteria 
also apply to some 191 HS headings. An appropriate certificate of origin issued by the designated authority in the exporting country must accompany the goods.  
3.2.4  Tariffs  
3.24.  Maldives' applied customs tariff is gove rned by the Export Import Act No. 31/79 and its 
subsequent amendments. The tariff is available in English online 
(http://www.customs.gov.mv/tariff/ ). However, only active tariff lines are reported online, which 
leaves room for administrative discretion and corruption. As of end-October 2015, some 
2,238 "inactive" tariff lines are not provided online. Tariff lines are activated on a needs basis, when a transaction occurs. The stated reason is to reduce scope for misclassification and ease the 
declaration process for traders. For the same pu rpose, the online tariff may contain several 
keywords (descriptions) for the same tariff line. As a result, the online tariff has 10,467 lines (but only 6,422 unique 10-digit codes).  
3.25.  The tariff in the 2012 version of the HS nomenclature was implemented on the date of its 
entering into force, on 1 January 2012. The 2015 applied MFN tariff has 8,661 lines, 3.6% less than the 2008 tariff which was based on the HS2007 (Table 3.1).  
3.26.  The applied tariff schedule is subject to frequent reviews, mainly through amendments to 
the Export Import Act. Reviews occur either on an  ad hoc basis or annually as part of the budget 
process. There are also annual reviews at the end of each year (checking for misclassifications and incorporating feedback from traders). Such frequent  revisions are likely to negatively affect the 
predictability of the tariff regime. During the review period, substantial tariff liberalization took 
place in 2011, in anticipation of the imposition of new taxes (section 3.4.2). There have been a few more revisions since then, mostly  upwards, for revenue purposes.  
Table 3.1 Tariff structure, 2008, 2013 and 2015  
(%, unless otherwise indicated)  
 MFN applied Final  
boundb  2008 2013 2015a 
Bound tariff lines (% of all tariff lines) 96.3 94.9 94.9 94.9 
Simple average rate 21.4 10.9 13.9 37.7 
   WTO agricultural products 17.2 8.2 11.3 44.2 
   WTO non-agricultural products 22.0 11.4 14.3 36.6 
Duty-free tariff lines (% of all tariff lines) 0.1 43.2 31.5 0.0 
Tariff quotas (% of all tariff lines) 0.0 0.0 0.0 0.0 
Non-ad valorem  tariffs (% of all tariff lines) 0.0 0.1 0.1 0.0 
Domestic tariff "peaks" (% of all tariff lines)c 1.5 4.9 4.3 2.7 
                                               
5 WTO document G/VAL/232/Rev.2, 8 October 2014. 
6 WTO document G/RO/N/22, 16 September 1998. 
7 Rules of Determination of Origin of Goods unde r the Agreement on South Asian Free Trade Area 
(SAFTA). WT/TPR/S/332/Rev.1 • Maldives 
 
- 33 - 
 
   MFN applied Final  
boundb  2008 2013 2015a 
International tariff "peaks" (% of all tariff lines)d 64.0 32.2 32.6 94.9 
Coefficient of variation 0.6 1.8 1.8 1.2 
Nuisance applied rates (% of all tariff lines)e 0.0 0.0 0.0 0.0 
Total number of tariff lines provided 8,987 8,344 8,661 8,217 
     Ad valorem  rates 8,972 3,603 5,927 8,217 
     Duty-free rates 9 4,735 2,727 0 
     Specific 6 6 7 0 
a As of end-October. 
b Based on the 2015 tariff schedule. Calculations are based on 8,041 bound tariff lines. c Domestic tariff peaks are defined as those exceed ing three times the overall simple average applied 
rate. 
d International tariff peaks are defined as those exceeding 15%. 
e Nuisance rates are those greater than zero, but less than or equal to 2%. 
Note: 2008 tariff is based on HS07 nomenclature; 2013 and 2015 are based on HS12. For 2008 and 2013, 
calculations exclude specific rates. For 2015, calculations include ad valorem  equivalents (AVEs) for 
six out of seven specific rates based on 2014 import data provided by the authorities. 
Source: WTO Secretariat calculations, based on MCS online information; and data received from the 
authorities. 
3.2.4.1  Applied MFN tariff 
3.27.  As a result of a unilateral tariff cut undertaken in the context of the 2010 tax reform 
(section 3.4.2.1), the tariff has undergone a substantial change over the period under review.8 The 
simple average of the applied MFN tariff dropped from 21.4% in 2008 to 10.9% in 2013, but 
increased to 13.6% in 2015 as duty reduction was reversed on some items (Table 3.1). The tariff 
cut was across most of the product categories, although its extent is larger for agricultural products (74.1% of duty-free lines) than non-ag ricultural products (24.4% of duty-free lines) 
(Table A3.1). Most tariffs on agricultural products  (WTO definition) are zero rated. All tariff lines 
related to dairy products and clothing are zero rated (Table A3.1). High averages apply to beverages, spirits and tobacco (52.1%) and cotton (15%). Product categories that are less 
impacted by liberalization include textiles, tran sport equipment and non-electric machinery, with 
3%, 5.8% and 5.6%, respectively, of duty-free tariff lines.  
3.28.  The 2015 MFN tariff has 12 ad valorem  rates and one specific duty rate applied to 
seven lines (compared to 10 ad valorem  rates and one specific rate applied to six lines at the time 
of the previous TPR). These are: zero, 5%, 10%, 15%, 20%, 25%, 35%, 50%, 100%, 150%, 
200% and 400%. The newly introduced band of 150% applies to tobacco products, cigars and smoking pipes (these products were mostly subject to the rate of 50% at the time of the previous 
TPR). Similarly, the highest rate (now 400% compared to 200% in 2008) applies to 12 tariff lines 
consisting of plastic bags, and polythene film and sheets.  
3.29.  Seven tariff lines related to various types of cigarette sticks remain subject to a specific 
duty of Rf 1.25 per stick, which tend to conceal relatively high tariff rates. In 2014, ad valorem 
equivalents (AVEs) ranged from 225.8% to 766.7%. These AVEs are the highest applied tariff rates in place. It should be noted that every meth od of calculating AVEs is subject to bias and that 
AVEs can vary widely depending on the import price of the product involved. 
3.2.4.2  MFN tariff dispersion and escalation 
3.30.  The mode of the tariff distribution ha s shifted from the 25% rate in 2008 (applying to 
47.1% of tariff lines) to the zero rate (applying to 31.5% of tariff lines) (Chart 3.1). As high duty 
rates were maintained on some products, the tariff structure displays a high level of dispersion. 
Between 2008 and 2015, the coefficient of variat ion of the tariff increased threefold to 1.8, 
                                               
8 In October 2011, import duties were eliminated on some 43.2% of tariff lines (there were only 
15 duty-free tariff lines in 2008). They were partially reversed in the 2015 Budget, which included provisions to 
raise import duties on several item s such as staple foodstuffs; vehicles; tobacco products; and luxury 
cosmetics and perfume. WT/TPR/S/332/Rev.1 • Maldives 
 
- 34 - 
 
  possibly reflecting selective protection in some sectors. Furthermore, high level of dispersion, 
especially within product groups, is an indication that similar goods might be taxed at significantly 
different rates, creating grounds for misclassification. 
Chart 3.1 Distribution of MFN applied tariff rates, 2008 and 2015 
(Number of tariff lines) 
(31.5) 
(8.1) (10.4)(17.4)(20.1) (47.1)   
(6.0) 
(0.1)(4.2)(11.6)(20.1)
(12.4)
(6.5)
(4.5)
05001,0001,5002,0002,5003,0003,5004,0004,500
Duty free 5% 10% 15% 20% 25% >30%MFN 2008 MFN 2015 (as of October)
 
Note: Figures in parentheses denote the share of total lines. 
Source: WTO Secretariat calculations, based on data provided by the authorities. 
3.31.  With the exception of the sectors of chemicals and fabricated metal products and 
machinery, the 2015 tariff structure is characterized by some level of de-escalation between unprocessed and semi-processed products, and escalation to fully processed goods (with the 
exception of textiles and leather) (Chart 3.2). Th e de-escalation is pronounced in the sectors of 
wood and furniture products; paper, printing and publishing; and non-metallic mineral products. Such a tariff structure implies negative protection for semi-processed goods and discourages 
downstream processing. In addition, the relatively  high tariff on semi-processed goods may result 
in lower effective rates of protection for final goods.  
Chart 3.2 Tariff escalation by 2-digit ISIC industry, 2015 
n.a.n.a.
0%5%10%15%20%25%30%
31 32 33 34 35 36 37 38 39 Total
manuf.Average applied rate
in manufacturing
(14.5%)
First stage of processing
Semi-processed
Fully processed
31   Food , beverages and tobacco      
32   Textiles and leather  33   Wood and furniture      37   Basic metals
38   Fabricated metal products and machinery39   Other manufacturing34   Paper, printing and publishing
35   Chemicals36   Non-metallic mineral products
 
n.a. Not applicable. 
Source: WTO Secretariat calculations, based on data provided by the authorities. WT/TPR/S/332/Rev.1 • Maldives 
 
- 35 - 
 
  3.2.4.3  Tariff bindings 
3.32.  Maldives bound its tariff mainly at a rate of 30%.9 However, some 3% of the tariff lines are 
bound at a rate of 300% (essentially meat products, alcoholic beverages, tobacco products, plastic bags, passenger motor vehicles, buses, motorcycles and their components). Based on the 2015 
tariff schedule, 94.9% of lines were bound, leav ing about 442 lines unbound. The unbound lines 
relate to fisheries (fish, crustaceans, and seaweed) and motor vehicle parts.  
3.33.  It is not possible to accurately compare bound tariff rates with applied tariff rates as the 
respective tariff schedules are in different nomenclatures: applied tariffs are in HS12 while bound 
tariffs are still in HS07 (see below). Many of the bound rates are higher than applied duties (Chart 3.3). Based on simple averages, the gap between the 2015 applied MFN tariff and the final 
bound tariff appears to be 24.1 percentage points, leaving considerable scope for the authorities to 
raise applied rates within the ceiling bindings. The state of observance of tariff binding 
commitments has not improved compared to the ti m e  o f  t h e  l a s t  T P R .  A p p l i e d  r a t e s  a p p e a r  to 
exceed bound rates on 323 lines (Table A3.2), comp ared to 218 lines at the time of the previous 
TPR. In addition, seven tariff lines bound at ad valorem  rates are subject to specific rates. For two 
tariff lines, the ad valorem  equivalent appears to exceed the bound rate. The authorities indicated 
that necessary adjustments will be made to comply with their commitments.  
Chart 3.3 Average applied MFN and bound tariff rates, by HS Section, 2008 and 2015 
0%10%20%30%40%50%60%70%80%
01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 2101   Live animals & products        
02   Vegetable products03   Fats & oils      
04   Prepared food, etc.
05   Mineral products06   Chemicals & products07   Plastic & rubber
08   Hides & skins09   Wood & articles
10   Pulp, paper, etc.
11   Textiles & articles12   Footwear, headgear13   Articles of stones
14   Precious stones, etc.15   Base metals and products
16   Machinery
17   Transport equipment18   Precision instruments19   Arms & ammunition
20   Miscellaneous manuf.21   Works of art, etc.MFN 2008 MFN 2015 (as of October) Bound
Average applied rate
2008 (21.4%)
2015 (13.6%)Average bound rate
(37.7%)(161.4%)(300%)
>
 
Note: HS Sections 01, 03, 04, and 17 are not fully bound. 
Source: WTO Secretariat calculations, based on data provided by the authorities. 
3.34.  Maldives bound its other duties and charges on most agricultural products at the rate of 
1%. For most of the tariff lines, the column related to "other duties and charges" was left blank, which is equivalent to binding these charges at the rate of zero. In practice, there is a licensing fee 
(revenue stamp) equivalent to 0.1% of the c.i.f. value of imports (section 3.2.5).  
3.35.  The transposition of Maldives' schedule of commitments into HS07 has been certified 
effective as of 12 August 2015.
10 Work on the transposition into HS12 is scheduled to begin in 
2016.11 
                                               
9 WTO, Schedule CXVI – Maldives. Viewed at: 
https://www.wto.org/english/tr atop_e/schedules_e/mdv.zip . 
10 WTO document WT/LET/1073, 9 September 2015. WT/TPR/S/332/Rev.1 • Maldives 
 
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  3.2.4.4  Tariff exemptions and concessions 
3.36.  During the review period, some changes were made to the legislation in this area. The main 
legislation governing tariff concessions are: the Export Import Act and its subsequent amendments; the State Right to Grant Exemption in respect of Certain Duties and Taxes Act; and 
the 2014 Special Economic Zones Act (section 3.4.2.3).  
3.37.  Under Clause 8 of the Export Import Ac t, the President may grant duty exemptions for 
items imported for economic development purposes . These include: expensive machinery; capital 
equipment; construction material; aircraft and their spares; aircraft engines and their spares; and 
aircraft consumable technical supplies. Duties on such items are fully exempted. The duration of exemption depends on the nature and size of the investment. For new projects, duties are waived 
until the investment is established, and for up  to a maximum of three years. For investments 
related to the expansion of an existing project, the maximum duration depends on the size of the 
investment as follows: 3 years for investments valued between US$2 million and US$25 million; 5 years for investments worth up to US$50 million; 7 years for investments of up to 
US$75 million; 10 years for investments of up to US$100 million; and 15 years for investments 
worth US$100 million and more. There are also sector-specific provisions. The President may also waive duties on goods imported under special circumstances such as an epidemic, a natural 
disaster, gifts, or free aid. 
3.38.  In general, items for personal use are ex empted from customs duties, provided that they 
are worth Rf 6,000 or less. Duty is charged on th e amount in excess of the threshold of Rf 6,000. 
Other duty-free items include: bio-degradable plastic bags; pipes and green house units; and 
products using renewable energy, and those that are used to generate renewable energy. Items 
imported for the expansion of the poultry, fisherie s and agriculture industries are also duty free.  
3.39.  Goods imported on a temporary basis may be eligible for duty concession (Article 125 of the 
Customs General Regulations). The duty concession rate varies from a full exemption (for goods 
re-exported within 90 days from their date of importation) to none if the goods were to be re-exported after two years from the date of importation. 
3.40.  Import duty exemptions and concessions still represent a sizeable loss of revenue for the 
Government. During the review period, revenue forgone through duty exemptions soared to 
Rf 1,084 billion in 2011 (equivalent to 41.9% of co llected import duties), reflecting exemptions 
granted for public infrastructure projects (Table  3.2). In 2014, duty exemptions amounted to 
Rf 550.5 million. This represented about 32% of du ty collections in 2014, up from 17.9% in 2009. 
The proportion of duty exemptions accrued to  the Government was 13.6% in 2014, down from 
20.5% in 2009 (and from a peak of 38.7% in 2011). Nearly half of the duty concessions (41.4% in 
2009) accrued to the private sector (excluding tourism). Government imports through SOEs, 
offices, and public projects accounted for about 13.6% of the value of duty concessions, and the 
tourism industry for about 10.3%.  
Table 3.2 Duty exemptions, 2009-14  
 2009  2010  2011  2012 2013 2014  
Total       
 - in Rf million 331.0  361.7  1,084.0  404.2  387.5  550.5  
 - in % of import duties 17.9 17.6 41.9 29.5 24.5 32.0 
By sector/recipient (% of total)      
   Government 20.5 29.2 38.1 14.9 15.4 13.6 
   Private sector (excl. tourism) 41.4 46.8 38.7 61.7 59.1 48.3 
   Tourism 10.2 1.3 1.5 3 5.2 10.3 
   Individuals 27.9 22.7 21.7 20.3 20.2 27.8 
Source: MCS.  
                                                                                                                                               
11 In accordance with procedures adopted by the General Council (WTO document WT/L/831, 
5 December 2011), the transposition of developing countries' schedules of commitments into HS12 is to be 
undertaken by the Secretariat, except for those who have submitted a notification by 31 December 2011 
indicating their intent to prepare their own transposition. Maldives has not submitted such a notification and therefore the transposition of its schedule of commitme nts into HS12 is to be prepared by the Secretariat. WT/TPR/S/332/Rev.1 • Maldives 
 
- 37 - 
 
  3.2.4.5  Tariff preferences 
3.41.  As a member of the South Asia Free Trade Area (SAFTA), Maldives grants preferential tariff 
treatment to products originating in other SAFTA members countries12, with the exception of 
products on its sensitive list. Maldives' sensitive list comprises 154 products consisting mainly of 
items such as: fish and crustaceans, fruit, meat, alcohol, cigarettes and tobacco, plastic products 
and polythene, machinery and equipment, vehicles  and vessels. The average applied tariff under 
the SAFTA was 5.3% in 2015, compared to 13.9% for the MFN tariff (Table A3.2). 
3.42.  Under SAFTA's liberalization programme and owing to its LDC status, Maldives is expected 
to reduce customs duties on all products except those on its sensitive list to rates between 0% to 5% by 2016 (section 2.6.2). 
3.2.5  Import prohibitions, restrictions, and licensing 
3.43.  Import restrictions and prohibitions are maintained for religious, health, safety, security, 
and environmental reasons. Maldives prohibits imports of religious materials offensive to Islam, idols for worship, pornographic material, live pigs, narcotics and psychotropic substances. 
Firearms, explosives, weapons and ammunition can only be imported by the Ministry of Defence 
and National Security. Goods subject to import permits or special permission are indicated in Table 3.3. 
Table 3.3 Goods subject to im port permits, July 2015  
Goods Type of permit / Issuing person or authority or requirement 
Liquor and alcoholic products  Prior permit/MED 
Pork and its by-products Prior permit/MED 
Chemical and chemic al products Prior permit/Ministry of Defence and National Security 
Fireworks, fishing guns, fog signals 
and distress signals Prior permit/Ministry of Defence and National Security 
Dogs and dangerous animals Prior permit/Min istry of Defence and National Security 
Pets  Health certificate/An au thorized veterinarian  
A rabies vaccination certificate is required for cats 
Live plants and animals Pr ior permit/Maldives Food an d Drug Authority (MFDA) 
Phytosanitary or sanitary certificate/ Foreign authority The vaccination for Fowl Pox and Newcastle Disease is required for chicken and chicks 
Communication equipment Inspection and approval by the Communication Authority of Maldives 
Hydrochlorofluorocarbon gas and equipment containing HCHC gas, Prior permit/Environment  Protection Agency  
biodegradable plastic produc ts Certification/Environment Protection Agency  
Live fish, raw and frozen meat Health certificate/Foreign authority 
Birds  Veterinary certificate/Pl ant and animal quarantine unit 
Pesticides and fertilizers Prior permit/Ministry of Fisheries and Agriculture and Ministry of Defence 
and National Security 
Medical products Produc t-specific permit/MFDA 
Breast-milk substitutes Product-specific permit/MFDA 
Vehicles that have been registered 
prior to import Prior permit/Ministry of Transport  
Original re-registration certificate/Foreign authority 
Source: Information provided by the authorities. 
3.44.  Imports of medical products are restricted to approved products from registered importers. 
In addition to the import licence from the MED, importers must be registered with the MFDA. They 
can only import products on an approved drugs list maintained by the MFDA. Any registered 
importer may request the addition of a new product to the list. Provisions related to parallel importing of pharmaceutical products seem to be in place.  
                                               
12 These are: Bangladesh, Bhutan, India, Nepal, Pakistan and Sri Lanka. WT/TPR/S/332/Rev.1 • Maldives 
 
- 38 - 
 
  3.45.  In accordance with commitments under the Montreal Protocol, hydrochlorofluorocarbons 
(HCFC) imports are subject to a quota.13 A draft legislation related to the import restriction for 
items containing HCFC has been sent to Parliament.  
3.46.  There has been no change to Maldives' import licensing regime, which continues to apply to 
all imports, including those of items for personal use.14 Businesses and individuals are required to 
obtain an import licence in order to engage in the import (or export) of goods.15 Licences are 
generally issued by the MCS, on behalf of the MED.  An import licence entitles the holder to import 
goods up to a specified value within a year. Licences are valid for one year from the date of 
issuance. In accordance with the Revenue Stamp Ac t, a fee equivalent to 0.1% of the projected 
transaction (c.i.f. value of imports or f.o.b. value of exports) is collected for the issuance of the 
licence. The authorities justify the ad valorem  nature of the fee on the grounds of revenue 
generation. The unused portion of the quota is forfeited upon expiration.  
3.47.  There are two types of licences: general and temporary. General licences are issued to 
individuals and companies holding a valid business permit to sell the imported items. However, 
any registered business can apply for a licence to import materials required for its operation. 
Occasional importers may apply for a temporary licence. 
3.48.  Maldives has not submitted a reply to the questionnaire on import licensing procedures to 
the WTO Committee on Import Licensing.  
3.2.6  Anti-dumping, counterva iling, and safeguard measures 
3.49.  Maldives has no legislative framework for anti-dumping, countervailing or safeguard 
measures, and has not taken any such measures. The Export Import Act contains provisions 
allowing the MED to take anti-dumping measures against imports from any country on an ad hoc 
basis. No anti-dumping action has been taken over the past six years. 
3.2.7  State trading 
3.50.  The STO remains the main state-trading enti ty involved in the importation of goods (e.g. 
food, manufactures, hydrocarbons) and trade in services (e.g. insurance and tourism) 
(sections 4.2.2.4, 4.3.2, 4.4.2, 4.5.2 and 4.5.3.2). Its main function is to ensure sufficient 
domestic supplies of staple food products, such as  rice, flour and sugar, at prices determined by 
the Government, which then subsidizes the difference between such price and the cost of imports (sections 3.4.8 and 4.2.2.4). Although there is no  restriction on private parties engaging in the 
import of these products, they are not eligible for government subsidies and tend to engage only 
in the importation of premium range segments of  these products. In 2014, the STO's imports of 
these items amounted to Rf 30.6 million, representi ng 19% of its total imports. The STO competes 
with the private sector in the importation of a wide range of other products and the provision of 
services; wholesale and retail trade represent the largest part of its turnover. It remains 
committed to being a profitable entity. No further information was available on the STO's exclusive import or distribution rights, its procurement methods, pricing, or traded values/volumes since 
2009.  
3.51.  Maldives has never notified to the WTO any state-trading activity within the meaning of 
Article XVII:4(a) of the GATT 1994, due apparently to the capacity limitations of the authorities 
(section 2.5.2).  
                                               
13 The Government of Maldives has committed to a complete phasing-out of HCFC imports by 2020. A 
system of licensing and quotas was put in place in 2010. From the baseline level of 67MT in 2011, the quota is 
set at 43.6MT (35% reduction) in 2016 and 21.8MT (67.5%  reduction) in 2018. In January 2011, licences were 
issued to three importers. 
14 Export Import Act, Act No. 31/79 and subsequent amendments. 
15 Export Import Act No. 31/79. WT/TPR/S/332/Rev.1 • Maldives 
 
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  3.3  Measures Directly Affecting Exports 
3.3.1  Registration and documentation 3.52.  Exporters remain subject to the same regist ration requirements as importers, including the 
licensing requirement (section 3.2.5). The documentation requirements for commercial exports 
typically include: the declaration form; the commercial invoice; the packing list; and any 
applicable permit, letter or document. In particular, shipments of fish products must be accompanied by a health certificate and a fitness certificate issued by the MFDA, and a catch 
certificate issued by the Ministry of Fisheries an d Agriculture. For live fish, a pro-forma aquarium 
fish export licence (issued by the Marine Research  Centre) is required. The MFDA charges a fee of 
Rf 200 per shipment of consignment.  
3.53.  The export declaration and supporting do cuments are lodged with the MCS. An export 
permit is then forwarded to the specified customs checkpoint. Customs verification typically aims 
at ensuring that the goods to be exported match those on the registered declaration. A certificate 
of origin may be issued by the MCS if applicable.  
3.3.2  Export taxes, charges, and levies 
3.54.  The Export Import Act continues to provide for a 50% export duty on the f.o.b. value of 
ambergris, a whale secretion used as a fixative for perfumes. The authorities indicated that the tax 
is for revenue generation, as ambergris is a high value item. There has been only one shipment of 
ambergris since 2012. As of 2012, the 5% royalty on the f.o.b. value of fish exports was replaced by the BPT, and the re-export royalty was abolished (section 4.2.1.4) 
3.3.3  Export prohibitions, controls, and licensing 
3.55.  In general, export prohibitions are imposed to comply with international obligations for 
environmental, public health and intellectual prop erty reasons. Exports of certain marine species 
remain prohibited for environmental reasons.
16 Exporters are subject to the same licensing 
requirements as importers (section 3.2.5). 
3.3.4  Export assistance 3.56.  The authorities indicated that there is no in surance or guarantee specific to export activities. 
The Export Import Act provides for a duty exempt ion on items used to add value to exports from 
the poultry, agriculture and fisheries sectors. A dditional assistance may take the form of the 
provision of cold storage facilities, ice, or loans at a concessionary rate. 
3.57.  Support in the form of business developmen t services or concessionary loans are available 
to micro, small and medium enterprises, incl uding for earmarked projects promoting import 
substitution, or exports (section 3.4.4). 
3.3.5  Export-processing zones 
3.58.  Under the 2014 Special Economic Zones Act
17, economic zones dedicated to special 
activities, including export processing zones, can be established (section 3.4.2.3). The decision to grant a permit for the development and operation of such a Zone is based on factors such as the 
potential of the investment in terms of employment, the facilitation of the export of local goods 
and products, and the transfer of knowledge or te chnology. Benefits from participating in an SEZ 
involve, inter alia , temporary exemption from the BPT (Table 3.5). No SEZ had been established 
by end-October 2015. 
                                               
16 Bait fishes (used for pole and line fishing); big ey e scads (less than six inches); black coral; black 
coral necklaces; boulder coral; branching coral; conch (t riton) shell; coral; dolphi n; eels; lobster and lobster 
meat; mother of pearl shells; parrot fi sh; puffer fish; ray skin; rays and skat es; trochus shell; turtles and their 
eggs, turtle shells and shell products; giant clam; shar k, shark products; napoleon  wrasse; whale shark; and 
whales. 
17 Special Economic Zones Act, No. 24/2014. Unofficial translation. Viewed at: 
http://investmaldives.org/investmaldives/wp-content/uploads/2014/09/SEZ-Act-Translation.pdf.  WT/TPR/S/332/Rev.1 • Maldives 
 
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  3.3.6  State trading 
3.59.  The Maldives Industrial Fisheries Company Limited (MIFCO) is the main state-trading entity 
involved in exports. It was never notified to the WTO (sections 3.2.7 and 4.2.1.3.2).  
3.4  Measures Affecting Production and Trade 
3.4.1  Standards and other technical requirements 
3.4.1.1  Standards, testing, and certification 3.60.  The Maldives Standard and Metrology Unit (MSMU) is the national standards body. 
Established under the authority of the MED, it has the mandate to: develop an appropriate set of 
national standards and technical regulations; assess conformity to national and international standards; ensure that the metrology of retailers and producers are accurate; and ensure the protection of heath and the rights of consumers. There is still no specific law related to standards, 
testing and certification in Maldives. A bill was being drafted at the time of the previous TPR, and 
is still under preparation.  
3.61.  Major achievements since the last TPR include the establishment of a metrology laboratory 
and the introduction of a halal certification scheme. Furthermore, Maldives received 
capacity-building and technical assistance from UNIDO under the project entitled "Market Access 
and Trade Facilitation Support for South Asian LDCs through Strengthening of Institutional and 
National Capacities related to Standards, Metrology, Testing and Quality (SMTQ)".
18 Phase 2 of the 
project was implemented between November 2 007 and December 2011 and has contributed to, 
inter alia , strengthening the MSMU; developing a pl an for the control of sub-standard and 
hazardous imported products; and the strengthening and accreditation of the National Food 
Testing Laboratory. Metrology cells were established in several regions and some awareness 
campaigns were organized in the areas of standards relating to occupational health and safety management (OHSAS 18000 series) and good hygiene pr actices (for the fishing industry). Phase 3 
of the project was launched in July 2014 and was ai med at strengthening the capacity of the MFDA 
for the establishment of a national food control system. With assistance from UNIDO, the MSMU has drafted some standards related to fish, fish products, and management systems.
19 These 
standards are yet to be adopted. An audit by UNIDO's Independent Evaluation Group deemed the 
appropriation by the MSMU to be limite d due to staff shortage and turnover.20 
3.62.  At the regional level, Maldives is collaborating with other SAARC countries in standards 
harmonization in sectors deemed of key trade interest, with the goal of enhancing intra-regional 
trade. In this context, the South Asian Regional Standards Organization (SARSO) was established 
in August 2011 with the objective of harmonizing standards in the following five sectors: food and 
agricultural products; jute, textiles and leather; building materials; chemicals and chemical 
products; and electrical and electronic products. It became operational in April 2014.  
3.63.  Maldives is not a member of the International Organization for Standardization. It is neither 
a member of the International Electrotechnical Commission, nor a participant in its Affiliate 
Country Programme. 
3.64.  According to notifications to the WTO, the MED is indicated as the national enquiry point and 
national notification authority under the TBT Agreement.  Since 1995, Maldives has not submitted 
any notification to the WTO TBT Committee. No specific trade concern has been raised in the 
Committee regarding Maldives. 
                                               
18 The project was targeted at four LDCs from the SAARC (Bangladesh, Nepal,  Bhutan and Maldives), 
and aimed at strengthening their export capacity and industrial development. Phase 1 of the project was 
implemented between 2003 and 2007.  
19 Drafts standards on food products are available online at: 
http://standards.gov.mv/drafts/ds_foodproducts.php.  
20 UNIDO (2012). WT/TPR/S/332/Rev.1 • Maldives 
 
- 41 - 
 
  3.4.1.2  Sanitary and phytosa nitary (SPS) requirements 
3.65.  The MFDA is the regulatory authority in th is area. Its mandate includes food safety and the 
development of standards, regulations and laws re lated to food (including MRLs and MLs settings). 
It is the competent authority for food exports, and the contact point for Codex Alimentarius. The 
Health Protection Agency is the enforcement agen cy for food hygiene, including food inspection. 
However, its competencies for the inspection of imported and exported food products were transferred to the MFDA with effect from 1 November 2015. Inspections are carried out by MFDA 
agents posted at the borders. The preparation of legislation, regulations and standards related to 
food control are under the responsibility of the Food Control Division of the MFDA. 
3.66.  The MFDA's National Health Laboratory (N HL) is the national testing laboratory for food 
products, including fish products for export. The MFDA achieved accreditation for the general 
requirements for the competence of testing and calibration (ISO 17025) for its microbiology and 
chemical laboratories respectively in 2008 and in 2010. 
3.67.  Fish exports generally adhere to the standa rds required by export markets. An audit carried 
out in January 2013 by the EU's Food and Veterina ry Office found Maldives ' regulatory framework 
for fishery products to be generally in accordance with the EU requirements.
21 The report 
highlighted some improvements in the implementa tion of the official control, and noted some 
deficiencies, particularly in the area of Hazard Analysis and Critical Control Points (HACCP) plan 
implementation.  
3.68.  A draft food bill was submitted to the A ttorney General in June 2014 for review, but has not 
yet been enacted. Regulations related to breast-milk substitutes were approved in 2008, and will 
be implemented on 1 January 2016.  
3.69.  Maldives has not submitted any notification to the WTO SPS Committee. Imports of eggs 
and egg products from countries on the WHO list of  bird flu affected countries are prohibited on 
SPS grounds. Maldives is a member of the FAO's Codex Alimentarius, and the World Organisation 
for Animal Health (OIE). The MFDA is the contact point for Codex Alimentarius, and the Ministry of Fisheries and Agriculture is the contact point for the OIE.  
3.4.1.3  Marking, labelling, and packaging 
3.70.  Packaged food products (bottled, packaged or canned) are subject to labelling in accordance 
with prescriptions set out under the Consumer Protection Act of 1996 and relevant implementing regulations. In 2014, the MFDA issued the standa rds applicable to the labelling of pre-packaged 
foods.
22 Labelling requirements include: the name of the food; a list of ingredients; processing aids 
and carry-over of food additives; net contents and drained weight; the country of origin (if its omission would mislead or deceive the consumer); lot identification; date marking; and storage 
instructions. Food imports are subject to similar labelling requirements.
23 According to the 
authorities, the main challenge in the area concerns products being labelled in foreign languages other than English. 
3.71.  Since 2004 and in accordance with the Tobacco Control Act (Act No. 15/2010), tobacco 
products are subject to textual warnin g covering 30% of the packaging.  
3.72.  In accordance with international practices
24, the MFDA maintains a set of regulations related 
to breast-milk substitutes.25 The legislation also covers labelling and marketing requirements for 
these items, and is to be enforced starting 1 Ja nuary 2016. Labelling is to be in accordance with 
Codex requirements, and is to be provided in the local language. 
3.73.  Although Maldives has no restrictions on the importation or production of GMO food, 
labelling requirements apply.  
                                               
21 European Commission (2014). 
22 National Standards for Labelling Pre- packaged Food, MFDA-FCD STAN 4-2014. 
23 MFDA Announcement No. IUL 23-AP/01/2011/039. 
24 WHO's International Code of Marketing of Breast-Milk Substitutes. 
25 Regulation on Import, Produce and Sale of Brea st-Milk Substitutes in Maldives (MFDA-FS/R1:2008). WT/TPR/S/332/Rev.1 • Maldives 
 
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  3.4.2  Taxation and tax incentives 
3.74.  Between 2009 and 2014, tax revenues increased nearly fourfold to Rf 10.4 billion 
(Table 3.4), representing 22.4% of GDP. The goods and services tax (GST), including on tourism goods and services, accounted for 42.5% of these revenues. The contribution of bank profit tax 
declined by half to 4.6%, while the recently introduced business profit tax accounted for 22.8% 
and is the second largest contributor to tax revenues (after the general GST). Import duty remains a non-negligible source of government revenue in Maldives; although its importance has declined 
sharply as a result of the introduction of these new taxes and a unilateral tariff liberalization 
initiative in 2011. In 2014, import duties accounted for 16.5% of total tax revenue compared to over two-thirds in 2009 and 2010. 
Table 3.4 Structure of tax revenue, 2009-14 
(Rf million and %) 
 2009  2010  2011  2012 2013 2014  
Total tax revenue (Rf million) 2,732 2,931 4,893 6,880 8,873 10,436 
 (% of total) 
Import duty 67.7 70.1 52.9 19.9 17.8 16.5 
Tourism (bed/green) tax 19.5 20.4 15.3 11.7 9.7 7.8 
Bank profit tax 9.0 6.9 4.7 4.6 4.0 4.6 
Goods and services tax n.a. n.a. 5.0 14.6 17.3 14.2 
Tourism goods and services tax n.a. n.a. 13.6 22.6 24.3 28.5 
Airport service charge 0.1 1.2 6.9 4.4 3.9 4.2 
Business profit tax n.a. n.a. 0.7 20.4 21.2 22.8 
Other 3.8 1.3 0.9 1.9 1.8 1.5 
n.a. Not applicable. 
Source: Ministry of Finance and Treasury (2015), Budget in statistics, financial year 2015 , Male. Viewed at: 
http://www.finance.gov.mv/v2/uploadedcontent/posts/Post1464-2015.pdf . 
3.4.2.1  Indirect taxes 
3.4.2.1.1  Goods and services tax 
3.75.  A GST was introduced in 2011.26 The GST Act made the distinction between two categories 
of GST: a general goods and services tax (general  GST) and a tourism goods and services tax.  
3.76.  The general GST is levied at a standard rate of 6% of the transaction value and is collected 
at the point of sale. In 2014, the GST was extend ed to telecommunication services and sales of 
immovable properties. In addition, the tax rate on domestic air transportation services was 
differentiated for locals at 6% and foreigners at  the standard 12% rate (see below). Exemption 
applies to the following goods and services (provide d that they are provided by a supplier that is 
registered with the authorities): electricity services; water facilities; postal services; sewerage facilities; education and health services; drugs and medical devices authorized for sale or supplied 
by registered pharmacies; financial services; rent  earned from the lease of immovable property; 
payments collected as fines; flats, land and buildings sold by the Government under social housing schemes; and international transportation services. 
3.77.  The legislation provides for a zero rate ta x on exports, transfers of a going concern, and 
some goods and services deemed as essential (as provided in Schedule I of the GST Act).
27 
                                               
26 GST Act (Law No. 10/2011), unofficial translation (Consolidated Version, 12 November 2015). Viewed 
at: https://www.mira.gov.mv/TaxLegislation /GST_Act_Consolidated_English_20151112.pdf . 
27 Rice, sugar and flour (provided it is imported by  the STO and sold at controlled prices); salt; milk; 
cooking oil; eggs; tea leaves; deep sea fish, reef fish, all types of fish packed in Maldives, and fish paste 
(rihaakuru); potatoes and onions; ingredients used in making curry paste (cumin, fennel, coriander, turmeric, garlic, ginger, chili, chili powder, cinnamon, card amom, peppercorn, and any other such ingredient); 
dhiyaahakuru, coconuts ( kaashi, kurun’ba, rukuraa, and kurolhi ); carrots, cabbage, beans and tomatoes; all 
kinds of fruits; bread, buns and rusk s; baby diapers; baby food; cooking gas; diesel; petrol; and adult diapers 
(GST Act, Schedule 1). WT/TPR/S/332/Rev.1 • Maldives 
 
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  Businesses registered as suppliers of zero-rated goods or services may claim tax credits for the 
GST paid on their inputs.  
3.78.  In the tourism sector, the GST was initiall y levied at the rate of 3.5% and then raised 
gradually to 12% as of November 2014 (section 4.5.2). The tax applies to goods and services 
considered as tourism goods and services. These include: goods sold and services supplied by 
tourist resorts, tourist hotels, picnic islands, guest houses, tourist vessels and yacht marinas authorized by the Ministry of Tourism; goods sold  and services supplied by diving schools, shops, 
spas, water sport facilities, and any other such facility on authorized tourist establishment; goods 
sold and services supplied by authorized travel agency service providers; goods sold and services supplied to foreign tourist vessels entering Maldives with their local agent; and goods sold and services provided by domestic air transportation service providers to persons other than Maldivian 
citizens. 
3.4.2.1.2  Bed/Green tax 3.79.  The tourism bed tax expired in January 2014, in accordance with provisions of the GST Act. 
It was reinstated briefly between April and November 2014 at the rate of US$8 per night bed 
(section 4.5.2). As of November 2015, it was replaced with a green tax levied at the rate of US$6 per bed night, payable in US dollars.
28 The green tax applies to tourist resorts, tourist hotels 
and tourist vessels (including foreign vessels) registered with the Ministry of Tourism. Foreign 
tourist vessels are liable for the duration of stay of the vessel. Maldivians and resident permit holders staying at these establishments are not required to pay the tax. The intended purpose of the green tax is for the management of waste from local resorts and other islands. With its specific 
rate, the tax is likely to have a disproportionate  effect on small and medium businesses compared 
to larger facilities. The authorities indicated that the tax does not apply to guest houses.  
3.4.2.1.3  Other taxes 
3.80.  Other internal taxes include the duty-free royalty, levied under the Law Governing Duty-
Free Areas in Maldives (Law No. 9/81). All duty-free shops are liable to pay a monthly royalty calculated as a percentage of sales as follows: 12.5% for cosmetics, perfumes, liquor, tobacco, 
lighters, sportswear and toys; 10% for electronic games and florists; 7.5% for confectionery, 
leather products and clothing; 3.5% for jeweller y, stationery, books and magazines; 1.5% for 
cameras, watches and other electronic items; and 5% for other items.
29 
3.81.  Non-tax revenues are derived from the touris m land rent (for resorts and hotels built on 
land owned by the Government) charged at the rate of US$8 per square meter; and an airport 
service charge amounting to US$12 and US$25 (since July 2014), respectively, for nationals and foreigners departing from an international airport. 
3.4.2.2  Direct taxes 
3.82.  The introduction of a BPT in 2011
30 extended profit taxes from banks to most businesses. 
The BPT is levied at the rate of 15% on the po rtion of profits in excess of Rf 500,000 (US$32,425). 
Profits from sources outside of Maldives (and above the threshold) are imposed at the rate of 5%. 
The legislation also introduced a withholding tax at the rate of 10%, without deduction. This applies to payments made in the following circumst ances: rent of properties; royalties; payments 
made for carrying out research and development, or for the use of computer software; 
management fees; fees for technical or personal services; payments for performances by public 
entertainers; rent and royalties paid to screen cinematographic films; and other commissions or fees that are not classed as employment income. The unfavourable foreign investment royalty was 
repealed (section 2.7).  
                                               
28 Green Tax Regulation (No. 2015/R-181), unofficial translation. Viewed at: 
http://www.mira.gov.mv/TaxLegislatio n/Green_Tax_Regula tion_(English).pdf . 
29 Regulation Governing Duty-Free Business in Maldives. Viewed at: 
https://www.mira.gov .mv/docs/Duty%20Free%20Regulation.pdf . 
30 Business Profit Tax Act (Act No. 5/2011), unofficial translation. Viewed at: 
https://www.mira.gov.m v/TaxLegislation/BPT%20Act%20E nglish%20Trans lation_v2.pdf.  WT/TPR/S/332/Rev.1 • Maldives 
 
- 44 - 
 
  3.83.  There is currently no personal income tax in Maldives. A Personal Income Tax Bill was 
introduced to the Parliament on 20 June 2011 (together with the Corporate Profit Tax Bill), but the approval process was suspended due to the uncertain political environment.
31 A revised Bill was 
submitted on May 2013. 
3.84.  Banks, charities and investors benefiting from an agreement are exempted from the BPT. 
B a n k  p r o f i t s  r e m a i n  t a x e d  a t  t h e  r a t e  o f  2 5 % ,  under the Law on Taxing Profits of Commercial 
Banks operating in Maldives (Act No. 9/85). There is no tax-free threshold.  
3.4.2.3  Tax incentives 
3.85.  Under the Law on Foreign Investments (Act No. 25/79), foreign investors may be exempted 
from the BPT. The terms of the exemption are negoti ated with the MED, and are to be specified in 
the investment agreement.  
3.86.  The 2014 Special Economic Zones Act aims at providing an overarching framework for the 
granting of tax incentives (section 3.3.5).32 SEZs can take many forms, including: industrial 
estates; export processing zones; free trade zones; enterprise zones; free ports; offshores 
financial services; and high technology parks (sec tions 2.7 and 4.5.3.1.2). The incentives include 
exemption from import duty (on capital goods), BP T, GST, withholding tax, taxes on the sale and 
purchase of land, the option upon negotiation on a case-by-case basis of freehold land to 
registered companies in Maldives with at least 50% local shareholding, and relaxed/flexible rules 
to bring and recruit expats for employment (Table 3.5 and section 3.4.6). 
Table 3.5 Tax exemption incentives to inve stors, investments an d businesses in SEZs 
 BPT BPT on 
dividends GST Withholding 
tax Import  
dutya 
SEZs     
Developers of SEZ (including 
provision of other basic services) x x 10 years 10 years x 
Manufacturing, logistics, 
transportation, building, ports and communication services 20 years 15 years 10 years 10 years x 
Building and operation of 
airports 10 years 10 years 10 years 10 years x 
Hotel, tourism and commercial 
real estate 2 years 2 years 2 years 2 years x 
Education, health and housing 10 years 10 years 10 years 10 years x 
Sports 5 years 5 years 5 years 5 years x 
Financial services 10 years 5 years 10 years 5 years x 
Research and development 10 year s 10 years 10 years 10 years x 
Other businesses 5 years 5 years 5 years 5 years x 
a Import duty exemption is with respect to capi tal goods imported mainly for the development, 
management and operation of the Zone.  
x The duration of the exemption was not available. Source: Special Economic Zones Act, Schedule 1 (Act No. 24/2014). 
3.87.  The SEZ framework is reserved for relatively large-scale investments (in excess of 
US$150 million) in activities and sectors considered as aligned with the strategic priorities of the 
Government. These include: export processing activities; transhipment port, international logistics, 
port, airport, bulk breaking, bunkering, and docking services; university, tertiary hospital, super specialty hospital, and research and development facilities; Information Communication 
Technology (ICT) parks and related facilities; international financial services; oil and gas 
exploration; and initiatives that are considered as introducing new technologies into Maldives. By end-October 2015, no SEZs had been established. The authorities indicated that a number of potential developers had expressed interest. In the 2016 Budget, revenue from SEZ projects are 
                                               
31 Asian Development Bank (2015b). 
32 Special Economic Zones Act (Act No. 24/2014), unofficial translation. Viewed at: 
http://investmaldives.org/investmaldives/wp-content/uploads/2014/09/SEZ-Act-Translation.pdf.  WT/TPR/S/332/Rev.1 • Maldives 
 
- 45 - 
 
  projected to be Rf 1.5 billion, accountin g for 5.2% of the total estimated revenue.33 Implementing 
regulations are to be published soon.34 
3.4.3  Financial assistance 3.88.  Domestic support is provided mainly through tax incentives and direct payments. In the 
agricultural sector, Rf 49.5 million was provid ed to farmers in 2013 through direct payments 
(section 4.2.2). Support to the fisheries sector continues to be provided mainly through fuel subsidies (section 4.2.1). Consumer subsidies and cross-subsidization in the form of price 
controls/fixing below production cost are in place in the energy sector (section 4.4). 
3.4.4  Other forms of assistance 3.89.  The 2013 Small and Medium Enterprises (SME) Act provides for additional forms of 
assistance to businesses registered as micro, small or medium enterprises (MSMEs).
35 It envisages 
the creation of centres with the goal of prov iding business development services to MSMEs and 
supporting the development of related clusters, value chains, and market access. It also provides for the creation of a loan scheme with the objectives of, inter alia , improving credit access and 
providing a mechanism where borrowers can improve and demonstrate their creditworthiness. In 
November 2015, the Government launched a Rf 50  million loan scheme for MSMEs, in accordance 
with the provision of the SME Act.
36 About 40% of the resources are to be earmarked for projects 
promoting women's participation, youth entrepreneurship, import substitution, or exports. The 
loan scheme is available to businesses registered  as an MSME with 100% Maldivian ownership.  
3.90.  Some commercial banks are offering financial products targeted at specific groups (mainly 
youth and women). Islamic financing programmes are also available for SMEs operating in the 
following sectors: fisheries and agriculture, construction, transport, and tourism (guest house 
innovation and upgrading).  
3.4.5  Government procurement 
3.91.  Maldives is not a party to the WTO Agreement on Government Procurement (GPA), or an 
observer to its Committee. The total value of the government procurement market for goods and services in Maldives was around Rf 4.3 billion in  2014, or 9.2% of GDP (Table 3.6). The Public 
Sector Investment Programme and Operational Services are the two major areas for public 
procurements, accounting for 39.3% and 30.5%, respectively, of the total public procurement amount in 2014.  
Table 3.6 Government procurement, 2009-14 
 2009  2010  2011  2012 2013 2014  
Total (Rf million) 3,113  3,090  3,201  2,857 3,617 4,319  
By threshold (% of total)       
   below Rf 2 million 55.2 39.3 62.6 59.0 39.2 53.4 
   Rf 2 million and above 44.8 60.7 37.4 41.0 60.8 46.6 
By item (% of total)       
   Supplies and Requisites 11.1 10.2 11.0 15.1 10.7 11.4 
                                               
33 Haveeru , "Maldives adopts controversial budget with no amendments", 23 November 2015. Viewed 
at: http://www.haveeru.com.mv/state_budget_2016/64203. 
34 Ministry of Economic Development (2015b). 
35 Individuals or legal entities are classified as an MSME depending on the number of full time 
employees and its annual income or turnover. Entities wi th no more than 5 employees and a turnover of up to 
Rf 500,000 are categorized as micro enterprises. Small enterprises are defined as entities with 6 to 30 employees and a turnover of between Rf 500,001 and Rf 5 million. Medium enterprises are entities with 31 to 100 employees and a turnover of between Rf 5,000,001 and Rf 20 million. If the business does not meet the two thresholds, the number of full time employees determines the final categorization (Business Development Service Center (BDSC) online information. Viewed at: 
http://bdsc.com.mv/sites/default/files/SME%20APPLICATION%20FORM_0.pdf ). 
36 Online information. Viewed at: http://www.presidencymaldives.gov.mv/?lid=11&dcid=16113  
[30.11.2015]. WT/TPR/S/332/Rev.1 • Maldives 
 
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   2009  2010  2011  2012 2013 2014  
   Operational Services 28.4 28 31 36.2 28.7 30.5 
   Supplies and Requisites for Service Provision 5.4 3.9 2.1 2.3 4.1 7.7 
   Repairs and Maintenance 4.4 3.9 4 6.8 2.7 4.8 
   Development Projects 16.4 2.7 5.1 3.1 1.1 0.1 
   Public Sector Investment Programme 30.0 48.1 42.7 30.6 50.6 39.3 
   Capital Equipment 4.3 3.1 4.1 5.8 2.0 6.2 
Source: Information provided by the authorities. 
3.92.  Government procurement is regulated by the Public Finance Regulation's (PFR) Chapter 8 
and the 2009 PFR Chapter 15.37 The regulations cover procurements carried out by government 
agencies using public resources. For procurements  related to defence or national security, the 
application of rules and procedures may be modified. A new draft PFR 2015 was expected to be gazetted in November 2015 and to come into force in 2016.  
3.93.  According to the authorities, the core principles of government procurement remain 
efficiency, transparency, accountability, fairness, competition, value for money, and the promotion of the economy. Procurement regulations serve to, inter alia , ensure transparency and 
accountability in public procurement and promote private sector participation. Competitive bidding 
in the form of open tendering (in the case of procurements for goods and works) and requests for proposals (for consulting services) is regarded as the best way to achieve these objectives.  
3.94.  Different procuring methods are used for contracts of different values. Single source 
procurement may be used for contracts below Rf 1,000. For contracts between Rf 1,000 and 
Rf 25,000, the items can be purchased directly. Ho wever, at least three quotations should be 
received and the lowest one should be chosen. For contracts above Rf 25,000, specific tender 
procedures under the Regulations have to be invoked.
38  
3.95.  Open tendering is the most frequently used method. When the contract value is below 
Rf 1.5 million, procuring agencies may organize  the procurement independently. Centralized 
procurement is required if the contract value exc eeds Rf 1.5 million. The Te nder Evaluation Section 
of the Ministry of Finance and Treasury undertakes centralized procurement on behalf of the procuring entity. The final decision on contract aw ard is made by the National Tender Board (NTB) 
whose members are appointed by the President an d represent both public and private sector 
professionals. If the procurement value is estima ted to be above Rf 10 million, the procurement 
entity may choose to invite international bidders, whil e, if it is less than Rf 1.5 million, the entity 
may choose to invite only local contractors. Projec ts funded by external grants or loans need to 
follow the procurement regulati ons set by the funding agency. 
3.96.  Government procurement is also used as a policy instrument to help domestic suppliers of 
goods and services to raise their participation in government procurement contracts. In addition to 
the possibility of restricting bids to local supplie rs (for procurements of Rf 1.5 million or less), 
preferential treatment to domestic suppliers may also be granted in the form of a margin of preference in the evaluation of bids. Such a margin is not to exceed 7.5%.  
3.97.  Publication in The Gazette  is required for all tender invitations (procurements above 
Rf 25,000). In addition, tender notices for procur ements between Rf 25,000 and Rf 1.5 million are 
to be published on the website of the procuring entity or its notice board. Notices for tenders above Rf 1.5 million are to be published on the website of the Ministry of Finance and Treasury, 
while those for tenders above Rf 10 million are to be published in international websites and 
newspapers. In practice, tenders are published in medias within the region. 
                                               
37 While the 2009 Public Finance Regulations Chapte r 15 has been enacted, it has not yet been 
published in the Gazette , but its provisions are being followed by virtually all government agencies. 
38 Under the newly drafted PFR, for contracts below Rf 1,500, the items could be purchased from the 
market directly. For contracts between Rf 1,500 and Rf 35,000, at least three quotations should be received 
and the lowest one should be chosen. For contracts above Rf 35,000 it should be publicly advertised and a minimum of three bids must be received fro m which the lowest evaluated one is chosen. WT/TPR/S/332/Rev.1 • Maldives 
 
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  3.98.  No appeals mechanism is currently in place. When potential breaches arise in tendering, 
bidders may file complaints to the Tender Evaluation Board (TEB) for review. However, the neutrality and effectiveness of the review is in doubt, as the TEB is not an independent complaint review body.
39 Other channels of recourse include filing a complaint to the anticorruption board or 
a legal case to the court. 
3.99.  While the whole financial management system has been improved, a 2014 report by the 
Asian Development Bank identified potential risks of corruption, including collusive practices in 
government procurement, and suggested that capaci ty constraints and lack of effective internal 
controls in public agencies be tackled in coming years.40 The authorities indicated that some tools 
have been developed to address these issues. These include: the use of a modern computer system for procurements of less than Rf 1.5 million; the centralization through the TEB for 
transactions above Rf 1.5 million; and the setup of a monitoring mechanism within the Ministry of 
Finance and Treasury to review transactions above Rf 1.5 million. Furthermore, there is a plan to 
launch a web portal by the end of 2015. Other tools include the conduct of workshops on 
procurement for government agencies, and the pu blication of standard bidding documents.  
3.4.6  Local-content requirements 3.100.  There is no legislation specific to local content requirements. The Law on Foreign 
Investments (Law No. 25/79) encourages foreign investors to use domestically produced raw 
materials and to employ locals, subject to availability and commercial viability. The authorities indicated that the provision is not enforced. 
3.101.  The 2014 Special Economic Zones Act requir es the number of expatriate staff in advisory, 
technical, or supervisory positions in SEZs not to exceed 10% (for each single investment project) 
(section 3.4.2.3). Exceptions may be granted on a case-by-case basis. Quotas for foreign employees are sector-specific and are issued by the Department of Immigration and Emigration. 
3.4.7  State involvement in the economy 
3.102.  State involvement in the Maldivian economy remains widespread, with close to 
100 companies (fully or partially owned by the Government, some are in liquidation) operating in 
various sectors of the economy, including trade, fi nance, transport, fishing, utilities, and tourism 
(Table A3.3 and sections 3.2.7, 3.3.6, 4.2.1, 4.4.1, 4.5.2, 4.5.3 and 4.5.5). 
3.103.  The State Business Privatization Act (No. 3/2013) determines the procedures for the 
privatization, corporatization, monitoring, evaluation and introduction of shares of state owned 
properties to the stock exchange as stated in the Constitution. The legislation establishes the 
Privatization and Co-privatization Board as the agency in charge of monitoring and evaluating privatization and co-privatization of SOEs. 
3.104.  SOEs operate under the Companies Act. The Government appoints the board members of 
S O E s  i n  p r o p o r t i o n  t o  t h e  s t r u c t u r e  o f  t h e i r  o w n e r s h i p .  B o a r d s  a n d  S O E s  d o  n o t  r e p o r t  t o  l i n e  ministers. Some SOEs operate as statutory or de facto monopolies, while others are subsidized, 
giving them an advantage over the private sector. These advantages may include preferential 
rates and fees for state land, and government guarantees for domestic and external loans. The Government may also tender procurement directly to any SOE if it is in the company's line of business. Therefore, some projects to be impl emented by the Government are carried out by 
SOEs. 
3.105.  The Companies Act requires all companies wi th capital of over Rf 1 million, whether public 
or private, to be audited by a public accountant or chartered accountant approved by the Auditor 
General (or the Auditor General's office in the case of SOEs).
41  
                                               
39 IMF (2010). 
40 Asian Development Bank (2014). 
41 Companies doing business in Maldives with sales over Rf 5 million have to be audited by MIRA's 
auditor. WT/TPR/S/332/Rev.1 • Maldives 
 
- 48 - 
 
  3.4.8  Competition policy and price controls 
3.106.  Maldives does not have a competition la w, although there are plans to formulate one. 
Hence, mergers and acquisitions are not subject to approval. Sector-specific legislation is in place for telecommunications to ensure the accessibility and reasonably low price of telecommunication 
services.  
3.107.  The 1996 Consumer Protection Act prohibits certain business conducts, such as unfair 
discrimination among consumers, keeping goods without offering them for sale, attaching 
conditions to the sale of goods, and false advertis ements. It also reserves the right for the ministry 
in charge of trade to control the price of a good or a service. Selling goods or services above the 
fixed price is prohibited. Only rice, flour and sugar have to be sold at the price designated by the 
Government (section 3.2.7).  
3.4.9  Intellectual property rights 
3.108.  Maldives acceded to the WIPO Convention in 2004. However, it is not a signatory to any of 
the treaties administered by WIPO. The authorities indicated that the country would join once the 
national legislation is in place. The country is receiving technical assistance from WIPO in this 
regard. 
3.109.  Intellectual property-related works are under  the responsibility of the Intellectual Property 
Unit (IPU) of the MED. Its mandate includes the regi stration and protection of IP rights related to 
logos, trademarks, business names, copyright, and geographical indications. Since its establishment in 2007, the IPU has launched several campaigns to educate businesses, investors, entrepreneurs, the general public, and other stakeh olders on aspects of IP rights. The Unit faces 
many challenges, including a shortage of expertise and a relatively high staff turnover.  
3.110.  Maldives has benefited from the WTO decision to extend the transition period for LDCs to 
provide protection for IP under the Trade-Related Aspects of Intellectual Property Rights (TRIPS) 
Agreement until 1 July 2013. The Council for TRIPS revi ewed Maldives' legislation in this area at its 
meeting on 5 June 2012, and took note of steps taken to comply with the TRIPS Agreement, which 
include the establishment of the IPU, public aw areness campaigns, and the ratification of the 
copyright law.
42 
3.4.9.1  Industrial property 3.111.  Maldives does not have any specific law related to the protection of patents and 
trademarks. A trademark bill and an industrial prop erty bill were drafted with the assistance of 
WIPO. The authorities indicated that these bills are being translated into the local language before 
submission to Parliament. In the meantime, registration of patents is on a first-in-time, first-in-
right basis. The authorities indicated that cautionary notices are not required.  
3.112.  Maldives is not a signatory to the Paris Convention for the Protection of Industrial Property. 
Maldives is not a signatory to the Patent Cooperation Treaty. 
3.113.  There is no legislation on the protection of geographical indications (GI). According to the 
authorities, there is a particular interest in the protection of Maldives fish ( hikikandumas ) as a GI. 
A GI bill is in the process of translation into the local language by the Attorney General's Office. 
3.114.  Maldives does not have any legislation on new plant varieties, layout-designs of integrated 
circuits, or undisclosed information/trade secrets. 
3.4.9.2  Copyright and related rights 
3.115.  In October 2010, the Parliament passed the Copyright and Related Rights Act43, providing 
for the protection of literary and artistic works, and the establishment of a registration system for 
them. Implementing regulations were adopted in  April 2011. Under the legislation, works are 
                                               
42 WTO document IP/C/M/70, 1 October 2012. 
43 Copyright and Related Rights Act No. 23/2010. WT/TPR/S/332/Rev.1 • Maldives 
 
- 49 - 
 
  protected by the sole fact of their creation. Rights  are protected during the life of the author and 
for 50 years after his death (or that of the last surviving author). The legislation also covers works that are eligible for protection in accordance with any international convention or agreement to which Maldives is party. The authorities indicated that there is currently no such a convention. 
There is a fee of Rf 1,000 for the initial regist ration of copyright. Monthly fees of Rf 60 are 
applicable to trademarks and logos. 
3.116.  The legislation provides for the establishment of a collective society but it has not yet been 
established. A draft Collective Management Organization Regulation is being finalized.  
3.4.9.3  Enforcement 3.117.  The institutional framework for IP protection in Maldives remains weak. According to the 
authorities, violation of copyright and trademarks remains prevalent. With the establishment of the 
IPU, several awareness programmes focused on co pyright infringements, and capacity-building 
programmes have been developed. The authorities indicated that lack of awareness and resources 
for enforcement are the main challenges in the area. Technical assistance in raising general 
awareness, introducing IP into the education system, would be needed. 
 WT/TPR/S/332/Rev.1 • Maldives 
 
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  4  TRADE POLICIES BY SECTOR 
4.1  Introduction 4.1.  During the review period although the average MFN tariff protection was reduced for all 
sectors, government intervention in the form of tariff and non-tariff measures continued to distort 
competition and adversely affect resource allocation and thus productivity. State involvement in 
the economy remains widespread across key sectors though additional scope was given to private investors in certain activities (e.g. air transport). Nevertheless, private-sector involvement in 
certain activities remains relatively weak (except in tourism), presumably due to crowding out by 
the state-owned enterprises and the relatively high cost of doing business in Maldives.
1 
4.2.  Despite its declining share of GDP (1.4% in 2015) the fisheries sector continues to be of 
major importance to the Maldivian economy as it accounts for nearly all (97.4%, 2014) 
merchandise exports; following the loss of preferential access to the EU market, some fish exports 
were partly diverted into other markets. During th e review period, tariff protection for the activity 
was reduced significantly, although most tariff lines relating to fish and fish products remain 
unbound. Fisheries subsidies are in the form of direct payments to support fuel costs (2009-14), a 
minimum income level during the low season (2014 onwards), and the installation of equipment for on-board ice making facilities and for conversion of bigger fishing vessels to engage in longline 
fishing. The longline fishing policy and regime were changed to reflect illegal fishing and 
overfishing developments as well as domestic fishermen's interests/concerns; foreign participation in this type of fishery was ceased in 2010 and a catch allocation-based individual transferable 
quota (ITQ) scheme was established in 2014. The state-owned Maldives Industrial Fisheries 
Company (MIFCO) continues to enjoy considerable monopsony power as it holds exclusive rights in 
purchasing and processing skipjack tuna in two of four zones. The value-based charge on fish 
exports was replaced by a direct taxation system in 2012. 
4.3.  Notwithstanding its land limitations and climatic risks, agriculture remains a crucial sector in 
terms of employment and therefore poverty reduct ion. Domestic producers receive support in the 
form of direct payments mainly distributed to compensate for loss of income due to natural 
disasters; as from 2014 direct payments were replaced with insurance schemes for farmers as well 
as concessional loans to support agricultural development. While average tariff protection to agriculture was reduced, tariffs on tobacco and alcohol products were increased for heath, religious and revenue purposes, and as of end-October 2015 the MFN applied rates for 52 tariff lines 
exceeded their bound rates. Staple foods (i.e. or dinary rice, flour and sugar) continue to be 
imported mainly through the majority government -owned enterprise State Trading Organization 
(STO) and are sold at government-controlled prices involving a subsidy.  
4.4.  Development of manufacturing remains limi ted and state involvement seems to persist in a 
few key areas through, inter alia,  STO's and MIFCO's activities. As of 2014, tax and non-tax 
incentives support activities of firms located in special economic zones (SEZs) but no such zones 
were in place at end-October 2015. Although tariff protection of manufacturing was reduced – 
except for some chemicals, cosmetics, soaps, ty res, textiles, motor vehicles, buses, and motor 
vehicle parts where it was increased – it remained slightly higher than the overall average applied 
MFN tariff and much higher than rates levied on agricultural items. As of 2015, applied MFN rates 
on 271 tariff lines exceeded their bound level. 
4.5.  Maldives remains fully import dependent on  petroleum-based fuels with key activities like 
tourism and fishery being the main energy consumers. Action is being taken both at the border 
and investment level to promote renewable energy and address several constraints. State 
involvement in the energy sector was strengthen ed with the establishment of a second state-
owned electricity company to achieve operational efficiency and ensure 24-hour electricity access 
to island communities. As electricity tariffs remain expensive by international standards, two types 
of subsidies equivalent to 0.7% of GDP (2014) are paid directly to households, some of which also benefit from cross-subsidization at the expense of  businesses subject to much higher tariffs.  
                                               
1 The authorities indicated that private investors operate in fishing, banking, insurance, housing finance, 
money transfer, construction, water and sewerage, wholes ale, telecommunications, airport operations, freight 
forwarding, education and healthcare.  WT/TPR/S/332/Rev.1 • Maldives 
 
- 51 - 
 
  4.6.  Services remain by far the largest sector  of the economy (accounting for more than 80% of 
GDP and over 90% of total goods and services expo rts) with tourism being the largest activity and 
the largest generator of government revenue. Th e limited commitments of Maldives under the 
GATS remain unchanged. Tourism-related taxes an d revenue were increased during the review 
period. Although tourism facilities are predominantly locally-owned, state involvement was 
apparently increased mainly through joint ventures, and the lease period for islands or land was extended under certain conditions. New legislation in the financial sector covered Islamic banking, 
prudential requirements, and prevention of money laundering and terrorism financing. 
Consequently, to capture a part of the market, a new Islamic bank was established and the offer of Shariah type financial products was expanded. The banks' capital adequacy ratio rose, but their minimum reserve requirement was reduced. Despite a recent drop, the relatively high level of 
non-performing loans (NPLs) remains a concern. State involvement in fixed-line communications 
was somewhat reduced in recent years with the state firm's (Dhiraagu) shareholding opening to public investment in late 2011; efforts were made to reduce its dominance in other telecoms 
segments. Other major developments include a new National Broadband Policy aimed, inter alia,  at 
extending broadband Internet access to all the inhabited islands as well as the introduction of mobile number portability and the extension of th e existing broad-based goods and services tax 
(GST) to telecommunications. Cabotage restrictions persist in both maritime and air transport 
activities. During the review period, the supply of international airline services was increased with 
the arrival of new operators and the expansion of airport capacity, whereas a lower GST rate 
benefited the domestic air transport of locals. On the other hand, state involvement in port and 
airport ownership and handling remained relatively unchanged.  
4.2  Fisheries and Agriculture 4.2.1  Fisheries 
4.2.1.1  Features 
4.7.  Despite its declining share of GDP (from 2.2% in 2009 to 1.4% in 2015) due to the reduction 
in fish catch and, as from 2013, the significant fall  in international tuna prices, the fisheries sector 
continues to be of major importance to the Maldivian economy (Tables 1.2 and 4.1); it accounted 
for nearly all (97.4%) merchandise exports an d employed 10% of the total workforce in 2010.
2 
The GDP and employment shares indicate that labour productivity in fisheries is relatively low; no total factor or labour productivity data for this activity since 2009 were available from the 
authorities. Due to its geographical nature, Maldives has diverse, albeit of low abundance, marine 
resources within its 200-mile exclusive economic zone (EEZ) (see below). Between 2009 and 2014, total fish catches were volatile, varying between 116,700 tonnes and 128,700 tonnes 
(Table 4.1). Tuna (skipjack, yellowfin, and bigeye ) account for nearly 93% of the total catch, with 
snapper, grouper, and other varieties making up the rest. The main export market for fish is Thailand, which takes over 33% of exports for use in its canning industry (section 1.6). Almost all 
dried and salted fish is exported to Sri Lanka, an d yellowfin tuna caught is primarily exported to 
Europe in fresh and chilled form. Fish products canned in Maldives are exported mainly to the 
European Union, where they benefited from  tariff and quota preferences until 2013 
(section 2.6.4).
3 Following the loss of preferential treatment in the EU market, exports of fresh and 
chilled fish were partly diverted into other markets such as those of the United States and the 
Middle East.   
                                               
2 Maldives Monetary Authority (2015a).  
3 Despite its graduation from LDC status, Maldives co ntinued to have access to the EU market under the 
Everything-But-Arms Initiative until the end of 2013, which allowed the country to have a longer period to adjust to the eventual removal of preferential market access. In 2011, EU represented 52% of its fish exports 
while in 2014 its share dropped to 38% (UN document CDP2012/PLEN/12, Note by the CDP Secretariat on 
Maldives for the Committee for Developm ent Policy Expert Group Meeting Review of the list of Least Developed 
Countries 16–17 January 2012. Viewed at: 
http://www.un.org/en/development/desa/policy/cdp/ldc_documents/maldives_monitoring_report_2012.pdf ; 
and EU online information. Viewed at: http://trade.ec.europa.eu/doclib/docs/2013/april/tradoc_150983.pdf ). WT/TPR/S/332/Rev.1 • Maldives 
 
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  Table 4.1 Fishing indicators, 2009-15  
  2009  2010  2011  2012  2013 2014a 2015a 
Contribution to GDPb (%) 2.2 2.1 1.9 1.6 1.7 1.5 1.4 
Growth of fishing GDPc (%) -2.6 -5.7 -1.1 -0.7 8.2 -0.9 -0.7 
Total fish catch ('000 tonnes) 116.7 122.2 120.8 120.0 129.8 122.0 .. 
- of which: skipjack tuna (%) 56.7 60.3 47.7 44.5 57.3 53.2  .. 
Total fish exports ('000 tonnes) 39.8 33.5 38.2 40.6 49.6 48.2 .. 
- value (US$ million) 72.0 68.3 120.6 156.1 161.3 139.1 .. 
Number of fishermen ('000) 14.4 11.7 11.0 10.0 9.3 8.8 .. 
Number of mechanized fishing vessels .. .. .. .. .. .. .. 
.. Not available. 
a Estimates. 
b Based at current prices. c Based on constant 2003 prices. 
Source:  Maldives Monetary Authority online information. Viewed at: http://www.mma.gov.mv/statis.php . 
4.2.1.2  Policy, legislative and institutional framework 
4.8.  Maldives continues to lack a comprehensive fisheries management policy.4 Under the 
assistance of the Japanese International Cooper ation Agency (JICA), at end-October 2015, the 
Ministry of Fisheries and Agriculture (previously Ministry of Fisheries, Agriculture and Marine 
Resources) (MoFA), which remains responsible for regulating the sector and formulating policy, was in the process of preparing a fisheries master plan. Despite a fairly comprehensive draft Fisheries Bill circulated in 2004 and withdrawn from the Parliament due to some concerns, the 
sector's regulatory framework remains relatively unchanged. Fisheries are regulated under Law 
5/87 and the Regulation for Issuing the Licence to  Fish in the Exclusive Economic Zone of the 
Republic of Maldives, which differentiate between near-coast and high-seas fisheries and stipulate 
the permissible methods of fishing. The regulatory instruments are applied through licensing 
systems. Maldives became a member of the Indian Ocean Tuna Commission on 13 July 2011, and in November 2012 it also certified pole and line fishery as a sustainable fishery product under the 
Marine Stewardship Council; the Council provides for eco-labelling of fish and other marine 
products and a fishery certification programme to contribute to the health of the world's oceans.  
4.2.1.3  Domestic measures  4.2.1.3.1  Fishing 
4.9.  Commercial fishing in Maldives remains differentiated by distance. Near-coast fishing 
(0-150 nautical miles (NM)) is carried out using traditional wooden hulled and fibre re-enforced masdhoanis  and is concentrated on skipjack tuna and yellowfin tuna primarily using pole and line 
and handline techniques. Masdhoani  owners are required to be Maldivian citizens; additionally, the 
vessels must be registered and the owners must have a licence to fish. The licence stipulates the permissible fishing methods, which include: pole and line, longline, trolling and hand line. Under 
the licensing regulation, fishing vessels are only required to obtain a licence if they intend to sell 
their catch to processors or exporters and gain a financial profit. Hence, fishing vessels intending to fish for their own consumption are not required to obtain a licence; however, these vessels also submit data to MoFA. As of 4 June 2015, there were 712 (979 in 2008) licensed fishing vessels in 
Maldives of which 695 were mechanized masdhoanis  and 5 mechanized vadhudhoanis  (trolling 
vessels).
5  
4.10.  During the review period, the longline fishing policy and regime were changed to reflect 
illegal fishing and overfishing developments as well as domestic fishermen's interests/concerns.6 
                                               
4 WTO document WT/TPR/S/221/Rev.1, 5 November 2009. 
5 WTO document WT/TPR/S/221/Rev.1, 5 November 2009; and Ministry of Fisheries and Agriculture 
online information. Viewed at: http://www.fishagri.gov.mv/images/Fishing_License_Report_-
_4th_June_2015.pdf . 
6 The authorities indicated that local pole and line and handline vessels equipped with better engines 
started operating further into the sea, and there were ma ny reports of illegal fishin g and transhipment at sea 
by licensed foreign fishing vessels. Resolution 14/06 on establishing a programme for transhipment by WT/TPR/S/332/Rev.1 • Maldives 
 
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  Longline fishing takes place between 100 NM and the high seas beyond Maldives' 200-NM 
exclusive economic zone (EEZ) where the main species caught is bigeye tuna. The MoFA ceased granting licences to foreign vessels in 2010.
7 To harvest the bigeye tuna resources in Maldives' 
EEZ the Government decided to reserve longline fishery for locals in November 2011; however, at 
the initial stage, few operators showed interest mainly because it was a new type of fishery for 
them and they had limited expertise. Under the regulation for longline fishing for tuna (Regulation No. 2014/R-388), the vessels have to be 100% locally-owned and have a minimum of 20% local 
crew. They are also permitted to fish in the hi gh seas beyond Maldives' EEZ. In 2015, 35 vessels 
were issued licences to operate as longline vessels. In 2014, the Government changed the longline fishery regime into a catch allocation-based individual transferable quota (ITQ) scheme based on its fleet development plan.
8 The longline regulation provisions set buying/selling catch quotas, 
exchanges of quotas and auctioning of quotas. Annual quotas for longline are sold from 1 June to 
31 May of the following year. In 2014, 11,800 MT of quotas was announced of which 96.3% was used. The authorities consider that the ITQ increased the licensing revenue generated from 
fisheries, raised the amount contributed by longline vessels and provided a competitive platform 
for the companies. During the first year of its operation, it raised revenue of Rf 6.8 million in quota fees; however, in 2015, this revenue was expected to decrease as a result of the decline in fish 
catch and the departure of some companies from fishery activities. 
4.11.  A Vessel Monitoring Programme for all commercially licensed fishing vessels is now in place; 
156 vessels are monitored by MoFA and the Maldives Coast Guard. Vessel Locating Devices are to be installed in all fishing vessels by mid-2016. The number of apprehensions by the Maldives Coast 
Guard due to illegal fishing over the last few ye ars has dropped significantly as many Maldivian 
vessels now venture 150–180 NM offshore and the number of reported sightings of foreign fishing vessels has dropped. MoFA has carried out internal investigations and has taken action against 
infringements by 5 local vessels in 2014.  
4.12.  In 2014, Maldives replaced all direct fisheries subsidies with a contribution-based insurance 
scheme which guarantees a minimum income level of Rf 10,000 during the low season. Fuel 
subsidies, introduced in 2009 in response to the hike in global oil prices, in the form of direct 
payments, were provided to fishermen until 2013; no such subsidies were paid in 2011.
9 The 2012 
and 2013 subsidies had not been reserved exclusively for fuel; funding was set aside for measures to encourage investment in ice plants (section 4. 2.1.3.2) – for which there was apparently a high 
demand, as well as in on-board ice making faciliti es and the conversion of bigger fishing vessels to 
engage in longline fishing. In 2013, Rf 50 million in  fisheries subsidies was directly allocated on the 
basis of the engine horsepower of the vessels; another Rf 25 million was to be used to install fish 
aggregating devices, Rf 23 million for the setting  up of ice plants and freezing mechanisms, and 
Rf 1 million to determine fishing grounds via satellite imagery.
10 The authorities consider that the 
magnitude of the subsidies provided to fishing is relatively insignificant.  
4.2.1.3.2  Fish processing and MIFCO  
4.13.  The purchase and processing of skipjack tuna remains divided into four zones. Under the 
existing rules, private enterprises apply for licences to process and export tuna. The application is evaluated on the basis of the procurer's capacity  needs in the designated zone. Currently, MIFCO, 
a state-owned company, holds exclusive rights to  buy and process tuna in two (zones two and 
four) of the four zones and as such has monopsony power; furthermore, MIFCO is permitted to 
                                                                                                                                               
large-scale fishing vessels banned sea transhipments for such vessels, which have to report to a port for 
transhipment activities. Indian Ocean Tuna Commission (2015).  
7 The longline fleet used to be foreign-owned and operated in the EEZ beyond 100 miles under licence 
and joint-venture arrangements. Ministry  of Fisheries and Agriculture (2014).  
8 Assuming that the number of fishin g vessels leaving and entering skip jack pole and line and yellowfin 
handline fishery remains constant, th e Government felt the changes in capacity could be used to develop 
longline fishery to target bigeye tuna. Indian Ocean Tuna Commission (2015). 
9 Ministry of Fisheries and Agricult ure online information Viewed at: 
http://www.fishagri.gov.mv/index.php/en/ministry/downl oads/176-fuel-subsidies-en; FIS article, "President 
announces resumption of fishing subsidies", 18 April 2012. Viewed at: http://www.fis.com/fis/worldnews//search_brief.a sp?l=e&id=51521&ndb=1&monthyear=&day=6&country=13
0&df=1 ; and online information. Viewed at. http://fisheriessubsidies.blogspot.ch/2012/12/maldives-65-million-
dollars-fuel.html .  
10 Haveeru , "Committee decides on fisheries, agriculture subsidies", 28 May 2013. Viewed at: 
http://www.haveeru.com.mv/news/49227.  WT/TPR/S/332/Rev.1 • Maldives 
 
- 54 - 
 
  procure fish in the other two zones, but it does no t have the exclusive right to do so. In each of 
the other two zones, two private companies hold licences. In practice, MIFCO purchases more than 90% of pole- and line-caught fish in zones two an d four and the rest is bought by SMEs and the 
local community for making smoked tuna. Acco rding to the authorities, between 2009 and 2014 
MIFCO's share of total skipjack and yellowfin t una exports dropped from 38% to 10%. MIFCO's 
activities have never been notified to the WTO and according to the authorities this is due to capacity limitations (section 2.5.2). A 2015 audi t of MIFCO found that the company had suffered 
an even larger loss after it was restructured into three independent companies (MIFCO, Kooddoo 
Fisheries Maldives Limited, and Felivaru Fisheries Maldives Limited) in 2010 for the purposes of minimizing loss, increasing investor interest, and stabilizing its financial state; the three companies were merged back into one by the Government in August 2014.
11 A financial restructuring of 
MIFCO was under consideration at end-October 2015.  
4.14.  MIFCO procures fish from vessels holding a valid fishing licence. Vessels give priority when 
selling their catch to processing companies, including MIFCO, before selling it to others. MIFCO has 
a higher share in skipjack tuna processing and is a price maker. However, in yellowfin tuna 
processing, MIFCO's share is smaller compared to private companies and it does not have influence in setting the prices. MIFCO pays a fixed, albeit higher than the international market 
rate, price for the catch, thereby ensuring the wellbeing of fishermen and the fishing community. 
Due to intense competition among fishing companies, in most cases all private companies are de facto forced to maintain the same price as MIFCO. Despite the dramatic decline in the international market prices for frozen fish from 2013 onwards, MIFCO did not bring down its buying price for a 
number of reasons. No information on the ga p between international and MIFCO's domestic 
purchase prices from 2009 onwards nor the extent to which this price differential affects MIFCO's and the operators' international competitiveness was available from the authorities.  
4.15.  There are 13 EU-certified tuna-processing facilities, and 39 small-scale producers of 
traditional products (salted, smoked and dried fish ). At present, there are two canneries in place; 
one is situated in the north and owned by MIFCO, and the second in the south, where most fish is 
caught, is privately owned by Horizon Fisheries. Construction of a new MIFCO plant is under way 
at the Addu Atoll. This project is divided into tw o phases: one consists of establishing 1,500 MT of 
cold storage and related support services, including facilities to procure fish from fishermen daily; and the second is to include processing facilities. 
4.2.1.4  Border measures  
4.16.  During the review period, tariff protection accorded to the activity was reduced significantly. 
As of 2015, applied MFN tariffs on fish imports averaged 5.9% (16% in 2008), which is relatively 
low compared with the overall average applied MFN tariff of 13.9% (21.4% in 2008) (Table A3.1); 
this drop relates mainly to the increase in the number of tariff lines at zero rate. However, most tariff lines relating to fish and fish products remain unbound, which gives the Government 
considerable leeway to raise tariffs on these prod ucts if the need arises, although this did not 
occur during the review period.
12 
4.17.  Since 2003, all export shipments require a health certificate for quality control purposes. 
The value-based export charge (tax) called "royalty", which varied according to the species, was 
replaced by the business profit tax as from 2012 (sec tion 3.4.2.2). No data on past "royalty" rates, 
their valuation basis, and the revenue collected since 2009 were available from the authorities. 
                                               
11 MIFCO handled the handline yellowfin operation, K ooddoo Fisheries procured fish in zone four and 
exported fish in frozen form, and Felivaru Fisheries  procured fish in zone two and canned it. Splitting MIFCO 
was not beneficial cost wise, because resource poolin g and synergy was lost. As each company had its own 
board and management, the cost of managing them in creased, and in zone two fish collection was not 
sufficient to operate the Felivaru cannery at its full capacity. Haveeru  article, "More loss to MIFCO with 
restructuring: audit report", 16 February 2015. Viewed at: http://www.haveeru.com.mv/business/59094. 
12 Only 8 tariff lines are bound (coral and similar mate rials, products of fish and crustaceans, molluscs 
or other aquatic invertebrates not el sewhere specified, and dead fish). WT/TPR/S/332/Rev.1 • Maldives 
 
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  4.2.2  Agriculture 
4.2.2.1  Features 4.18.  Agriculture remains a crucial sector in terms of national development goals, poverty 
alleviation and sustainable livelihood, nutritional status of the people, retention of foreign 
currency, and employment.
13 During the review period, the share of agriculture in GDP was 
relatively stable at slightly more than 2% (Table 1.2), and 40% of the rural population is employed in some manner in the sector. Similar to fisheries, the GDP and employment shares indicate that 
labour productivity in agriculture is relatively very low and no total factor productivity data since 
2009 were available from the authorities. The total land area of about 300 km
2 is divided among 
1,192 coral islands that are unstable and subject to change in size, shape, elevation, and position 
on reef platforms. Climatic risks to the agriculture sector are exacerbated by limited cultivable land 
(27 km2), low elevation (80% of total land area is less than 1 meter above mean sea level), poor 
soil quality, and scarce water resources. There are 48 uninhabited islands that have been leased out for 21-year periods for commercial farming purposes; these may be leased only to Maldivian 
companies and individuals. Approximately, 75% of the inhabited islands also have some 
agricultural production. The main products cultivated are watermelon, papaya, coconut, pumpkin, tender coconut and mango. Food imports meet approximately 90% of the country's tourism-driven 
food demand. Maldives is self-sufficient only in fish; as a result, food security is one of the 
principal objectives of agricultural policy.  
4.2.2.2  Policy  4.19.  Under the Seventh National Development Plan (2006-2010) and Strategic Action Plan of 
2009-2013, government policy was to be focused not just on food security, but also on: ensuring 
sustainability of the sector; improving human re source capacity in the sector; increasing the 
capacity for technology generation and dissemina tion; improving agricultural trade and marketing 
infrastructure; and ensuring a suitable nutritional intake of the population. Consequently, since 
2009 agriculture has diversified into poultry farming, goat raring and value adding activities such as the production of virgin coconut oil (VCO), chilli sauce and taro to make chips. Enhanced 
technologies such as soil-less mediums, like  hydroponics and autopot systems, have been 
introduced. In order to build better linkage between the farmer and the market, six value chain cooperative societies (VCCO's) have been established. At end-October 2015, a new National Development Strategy that would possibly address agricultural matters was announced 
(section 2.4). 
4.2.2.3  Domestic measures  4.20.  On 16 October 2014, direct payments to compensate domestic producers for loss of income 
were replaced with two insurance schemes: the accident insurance scheme to support farmers who 
may be injured in farm activities, and the crop insurance scheme to compensate them for any loss of agricultural produce due to natural disasters such as floods, heavy rains and tsunamis etc. 
Agricultural development soft loan programmes have been in place since 2013; the loans have 
targeted smallholder farmers wishing to upgrade their farming activities with innovative technologies and value-adding activities. In 2011, input subsidies totalling Rf 31.9 million were disbursed to 10,112 farmers. In 2013,  out of Rf 50 million allocated for agricultural subsidies, 
Rf 49.5 million were to be distributed directly to the farmers, whilst Rf 500,000 were to be used for 
administrative purposes.
14 In 2014, a budget of Rf 50 million was allocated for subsidies; however, 
this amount has not been disbursed to farmers as the policy for its allocating was being revised by 
the Government. Between 2009 and 2015, a total amo unt of Rf 24.4 million has been disbursed to 
446 farmers who are beneficiaries of soft loans at an interest rate of 6%, with a 6-month grace period and a payback period of 5 years.  
4.2.2.4  Border measures 
4.21.  Similar to fisheries, tariff protection for agriculture was reduced during the review period. As 
of 2015, applied MFN tariffs on agricultural imports averaged 11.3% (17.2% in 2008), compared 
                                               
13 Mahfuz Ahmed and Suphac hol Suphachalasai (2014).  
14 Haveeru  article, "Committee decides on fisheries, agriculture subsidies", 28 May 2013. Viewed at: 
http://www.haveeru.com.mv/news/49227.  WT/TPR/S/332/Rev.1 • Maldives 
 
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  with the overall average applied MFN tariff of 13.9% (21.4% in 2008) (Table A3.1). Applied MFN 
tariff rates range from zero to 766.7% (beverages, spirits and tobacco) (Table A3.1); the authorities indicated that the increase in the peak rate was for health protection purposes. Furthermore, the tariff rates applied to alcohol products were increased on religious grounds as 
well as due to them being a luxury item consumed mainly by tourists and to address the persistent 
budget deficit issues. Cigarettes (7 tariff lines) are subject to a specific duty of Rf 1.25 per stick. All tariff lines (except for HS 15.04.30 – fats and oils and their fractions, of marine mammals) 
relating to agricultural products (WTO definition ) are bound; 94.6% of agricultural tariff lines are 
bound at 30% and the remaining 5.3% are bound at 300%, thus providing considerable leeway to raise tariffs on these products if the need arises. For 52 tariff lines the MFN applied rate stands at 50% and for one tariff line the MFN applied rate equals 35% while all are bound at 30%.
15  
4.22.  Staple foods, such as ordinary rice, fl our and sugar, are imported mainly through the 
majority government-owned enterprise State Trading Organization (STO) and are sold at government-controlled prices which according to the authorities are necessary to keep inflation 
rates low and to ensure access to food by the most  vulnerable populations (sections 3.2.7, 3.4.8, 
4.2.2.4, 4.3.2, 4.5.2 and 4.5.3.2).
16 Although any importer can import staple food items, most 
importers choose to abstain due to their controlled  price. The Government provides only to the 
S T O  a n  a m o u n t  o f  R f  0 . 4 0  p e r  k g  s o l d  o f  s t a p l e  f o o d  ( r i c e ,  f l o u r  a n d  s u g a r )  t o  r e c o v e r  t h e  
overhead cost of handling and storing these products. No further information was available on STO's exclusive import or distribution rights, its procurement methods, pricing, or traded 
values/volumes since 2009.  
4.3  Manufacturing 
4.3.1  Features 4.23.  During the review period, the share of manufacturing in GDP ranged from 4.3% (2010) to 
6% (2012) (Table 1.2). No total factor productivity data since 2009 were available from the 
authorities. The development of the manufacturing sector remains limited due to the small size of 
the domestic market, limited availability of sk illed labour and high dependence on imported 
materials. The main industries include fish processing, food and beverage products, boat building, 
handicrafts, furniture, garments, PVC pipes, and soap.  
4.3.2  Domestic measures  4.24.  Under the Special Economic Zones Act 24/2014, since September 2014 several incentives 
have become available to developers and firms set to operate in special economic zones (SEZs), 
though no SEZs were in place by end-October 2015 (section 3.4.2.3). 
4.25.  State involvement in the sector seems to persist. Fish processing, which is the main 
industry, is geared towards exports and is dominated by small and medium-sized enterprises, 
including the state-owned MIFCO (section 4.2.1.3.2). The STO (sections 3.2.7, 3.4.8, 4.2.2.4, 4.3.2, 4.5.2 and 4.5.3.2) continues to import directly, repack and/or distributing certain products 
such as food and beverages, construction materi als (e.g. cement and steel roofing products) and 
medical supplies.
17 The authorities indicated that the STO does not have exclusive import rights for 
cement, basmati rice and condensed milk. No further information was available on STO's exclusive import or distribution rights, its procurement methods, pricing, or traded values/volumes since 
2009. 
4.3.3  Border measures  4.26.  During the review period, tariff protection for manufacturing was reduced. As of 2015, 
applied MFN tariffs on imports of manufactures av eraged 14.5% (22.2% in 2008), slightly higher 
                                               
15 These items consist of live dangerous animals, pig pr oducts (e.g. pig fat, lard, animals fats and oils of 
swine, margarine containing swine, an d pork meat), food preparations and juices containing alcohol (e.g. sugar 
confectionary containing wine, chocolates containing alco hol, and fruit juices contai ning spirits), and residues 
and waste of the food industry. 
16 The Government owns 81.6% of STO's shares; no si ngle party other than the Government directly or 
indirectly owns more than 5% of the shares of  the company. State Trading Organization (2015). 
17 State Trading Organization (2015). WT/TPR/S/332/Rev.1 • Maldives 
 
- 57 - 
 
  than the overall average applied MFN tariff of 13.9% (21.4% in 2008) (Table A3.1). Applied MFN 
tariff rates ranged from zero to 400% (sheets, plates and foils of polythene, plastic sacks and bags, textiles and certain made-up articles) (Table A3.1). The higher average level of MFN tariff protection was provided to: transport equipmen t; arms and ammunition; plastics and rubber and 
articles thereof; works of art, and precious st ones and pearls; and, raw hides and skins. As 
indicated by the authorities, under the 2015 amendm ent to the Import/Export Law, tariff increases 
affected some chemicals, cosmetics, soaps, ty res, textiles, motor vehicles, buses, and motor 
vehicle parts (tyres, glass safety, locks, engines, and motor parts); on the other hand, import 
duties for gold, garments and luxury sea vessels were reduced to zero. Virtually all (99.3%) tariff lines relating to manufactured products are bound; 96.9% of manufactured items' tariff lines are bound at 30% and 2.4% are bound at 300%. As of 2015 applied MFN rates on 271 tariff lines 
exceeded their binding level.
18 
4.4  Energy 4.27.  Energy supply remains a key driver of economic development.
19 No total factor productivity 
data since 2009 were available from the authoritie s. The main supply of energy includes diesel, 
petrol, liquefied petroleum gas (LPG), kerosene, and Jet A1 fuel; diesel accounted for 84% in 2010, 80% in 2011 and 70% in 2012 of Maldives' ener gy mix. Indigenously-produced and supplied 
energy accounts for about 0.1% of the total ener gy supply. Energy consumption increased from 
224,000 tonnes of oil equivalent (TOE) in 2002 to 699,898 TOE in 2014 – driven mainly by rising demand for electricity and transportation.
20 Petroleum-based fuels are a major import in Maldives, 
accounting for 31.0% of total imports (the larges t category) in 2012, with total dependence on 
imports for power generation. Maldives is extremely vulnerable to oil price variations. In 2014 
alone, Maldives spent US$552 million on importing fossil fuels (around 18% of the GDP), an increase from US$470 million in 2012, (around 23% of the GDP). Tourism (1/3 of the total energy 
consumption) and fisheries remain the main energy consuming activities.  
4.28.  Maldives' 2010 energy policy objectives consisted of: providing access to an affordable and 
reliable supply of electricity; achieving carbon ne utrality in the energy sector by 2020; promoting 
energy conservation and efficiency; increasing national energy security; promoting renewable 
energy technologies, strengthening the management  capacity of the energy sector; adopting an 
appropriate pricing policy; ensuring customer pr otection; and enhancing the quality of energy 
services.
21 The energy strategic action plan for 2014– 2017 is being formulated and several of the 
key priorities are expected to remain the same; it was expected to be published in October 2015. 
According to the Asian Development Bank, the energy sector faces several constraints including inadequate financing for energy-sector investments,  limited sector-level planning, low levels of 
energy efficiency, and barriers to renewable energy investment.
22  
4.29.  Maldives has potential for significant renewa ble energy (RE) resources, especially solar and 
some pockets of wind.23 Use of solar energy has been growing as a result of its popularity and a 
drop in market prices; it is used in resorts for water heating purposes. Solar photovoltaics (PV) 
systems are now increasingly used to feed the electricity grids in some islands including the capital Male.
24 As of today, the total installed capacity of solar PV systems is 4 MW. According to the Asian 
Development Bank, barriers to RE development incl ude: the absence of an adequate institutional 
                                               
18 For 93 tariff lines the MFN applied rate stands at 35% while the bound rate is 30% (explosive, 
fireworks, tyres of rubber, mechanical appliances and electrical machines); for 169 tariff lines the MFN applied 
rate equals 50% while all are bound at  30% (tyres of rubber, engines and other equipment for vehicles); for 4 
tariff lines the MFN applied rate equals 100% while all are bound at 30% (freon); for 10 tariff lines the MFN 
applied rate equals 400% while all are bound at 30% (plastic plates, sheets, film, foil; plastic boxes, plastic packaging); for 5 tariff lines the MFN applied rate is 150% while the bound rate is 30% (smoking pipes, and 
cigar or cigarette holders); and, 1 tariff line's MFN applied rate equals 400% while its bound rate is 300% (bags of plastic). 
19 Maldives Energy Authority (2014). 
20 Asian Development Bank online document (undated), "Interim Country Partnership Strategy: 
Maldives, 2014–2015 Sector Assessment (Summary): Energy". Viewed at: http://www.adb.org/sites/default/files/linked-documents/icps-mld-2014-2015-ssa-01.pdf . 
21 Ministry of Housing and Environment (2010). 
22 Asian Development Bank online document (undated), "Interim Country Partnership Strategy: 
Maldives, 2014–2015 Sector Assessment (Summary): Energy". Viewed at: 
http://www.adb.org/sites/default/files/linked-documents/icps-mld-2014-2015-ssa-01.pdf . 
23 Lopez (2015).  
24 Maldives Energy Authority (2014). WT/TPR/S/332/Rev.1 • Maldives 
 
- 58 - 
 
  framework for implementation and monitoring; the lack of standardized instruments to support 
investments, including tariff schemes and power purchase agreements; and, the lack of availability of capital linked to investment risk perceptions. An increased share of renewable energy will help 
reduce reliance on oil imports, reduce the pressure on the balance of payments, improve Maldives' 
fiscal position, and contribute to enhancing energy security.
25 
4.30.  Action was taken to promote RE in Maldives. The Government has set import duties for 
RE-related products to zero, and is formulatin g policies and regulations to promote renewable 
energy integration. In addition, research on feasible alternative energy sources is to be 
undertaken. In 2012, Maldives formulated a medium-term investment plan to scale up renewable energy investments (including large-scale renewable energy development) to meet the rising demand for electricity and to increase national energy security.
26 The Investment Plan is designed 
to include investments from both the public and private sector. Whilst the public sector component 
will be achieved through grant assistance and loan s (currently pending), specific mechanisms (e.g. 
investment guarantees for payment of electricity sold) have been developed to leverage finances 
for RE investments from the private sector. The first programme of the Investment Plan, Preparing 
Outer Islands for Sustainable Energy Development (POISED), is administered by the Asian Development Bank (ADB), and is mainly focused on public sector investments; its key focus is to 
rehabilitate existing power systems in the is lands and install about 21MW of RE. Under this 
programme, procurement of 2.5 MW of solar PVs and the rehabilitation of power systems in 
5 islands was initiated in February 2015. The second programme of the Investment Plan, Accelerating Sustainable Private Investments in Renewable Energy (ASPIRE) is administered by 
the World Bank; it is focused on creating pr oject structures conducive to private-sector 
participation, with appropriate project framew orks and agreements for making the project 
bankable and attractive for private entities, and with the aim of installing a total of 20 MW of solar 
PVs. The first project under the ASPIRE programme aims to install 4 MW of solar PVs in Male and 
Hulhumale in 2015 on a "design, build, finance, own, operate, and transfer" basis.  
4.31.  As of 2012, RE initiatives included: a contract to connect the main islands in the Male area 
with a 132kV link, coupled to a 20MW wind farm and a gas back ‐up power station; a 3.7 MW waste 
to energy project for Thilafushi; introducing a low level of solar PVs 200 kW (about 30% of peak 
load) on Thinadhoo; and, a possible substantial solar roof programme on the new warehouses proposed for Thilafushi.
27 Most RE energy projects were held up as a result of poor contracts, lack 
of guarantees by central government, or poor understanding by utilities of how to enter and 
manage such contracts. In September 2014, the ADB approved a US$50 million grant in support of renewable energy initiatives that form part of a larger US$124 million project co-financed by the 
European Investment Bank and the Islamic Development Bank for Maldives to lower its 
dependence on fossil fuels by 2019, as well as to reduce energy sector subsidies.  
4.32.  In 2014, a government taskforce identified significant potential for supply- and demand-side 
energy efficiency through measures such as development of equipment codes and standards, 
measures for public buildings, and generator upgrades.
28 As of end-October 2015 the authorities 
had undertaken only sensitization campaigns, and they were working on an energy rating and 
labelling system for electrical appliances as well as the replacement of incandescent with 
candescent lamps.  
4.4.1  Electricity  4.33.  The share of electricity (and water supply) in GDP dropped slightly during the review period 
and stood at 1.1% in 2014 (Table 1.2). Nearly 100% of all electricity, the main type of energy 
utilized, is generated by diesel-based systems; transmission losses are low at 7% to 8%, and theft is negligible.
29 Among the main demand factors increasing the pressure on energy supply are a 
                                               
25 IMF (2015); and Lopez (2015).  
26 Asian Development Bank online document (undated), "Interim Country Partnership Strategy: 
Maldives, 2014–2015 Sector Assessment (Summary): Energy". Viewed at: http://www.adb.org/sites/default/files/linked-documents/icps-mld-2014-2015-ssa-01.pdf . 
27 Unknown author, online document, "SREP Investment Plan - Republic  of the Maldives", 7 February 
2012. Viewed at: http://co2.org/wp-content/uploads/2012/12/Maldives-SREP-last-version-from-MM.pdf .  
28 Asian Development Bank online document (undated), "Interim Country Partnership Strategy: 
Maldives, 2014–2015 Sector Assessment (Summary): Energy". Viewed at: 
http://www.adb.org/sites/default/files/linked-documents/icps-mld-2014-2015-ssa-01.pdf .  
29 Maldives Energy Authority (2014).  WT/TPR/S/332/Rev.1 • Maldives 
 
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  high population growth of 3% per year, a hi gh urbanization trend, and growing tourism.30 All 
tourist resort islands have their own private electricity production, mostly used for cooling. Although Maldives has solid plans to meet growin g demand for electricity, the geography of the 
country works as a barrier to grid connection. Fu rthermore, the low elevation combined with the 
narrow width of the islands makes powerhouses and associated infrastructure vulnerable to 
flooding and damage from severe weather events. Electricity demand is expected to double by 2020, led by an increase in usage by resorts.
31 According to World Bank data, Maldives stands 
108th in the ranking of 189 economies on the ease of getting electricity, which is below several 
South Asian countries but above India.32  
4.34.  During the review period, the sector was consolidated with the setting up of a second state-
owned utility company; this consolidation is expected to support sector level planning.33 Until 
2009, the State Electricity Company (STELCO), a loss- making entity, was the sole integrated utility 
responsible for generation and electricity supply in about 28 islands, including Male, while island cooperatives were responsible for providing electricity for over 150 outer islands (of a total of 200 
inhabited islands and 100 island tourism resorts). A structural change in 2009 gave STELCO the 
responsibility to provide electricity services to the greater Male region and nearby atolls. As a 
result of this change, STELCO currently provides electricity services in 33 islands in Kaafu Atoll, Alif 
Alif Atoll, Alif Dhaal Atoll and Vaavu Atoll. STELCO generated losses of around Rf 28.5 million in 
2013 and Rf 57 million (unaudited) in 2014.
34 In 2009, six new regional utilities were set up and 
given electricity supply responsibilities for the non-STELCO licensed areas. As of mid-2012, these six regional utilities serving the outer islands were integrated into FENAKA Corporation Limited — a 
new utility company set up to provide electricity, water, and sewerage services to all inhabited 
islands in Maldives, with the exception of the gr eater Male region; the assets and human resources 
of the previously established six utility companies were transferred to the corporation. As the 
electricity system in the islands taken over by FE NAKA was poorly designed and inefficient, there 
were losses in both generation and distribution. Consequently, FENAKA has to spend on extra fuel 
and further maintenance making the company a loss-making business. To date, FENAKA has made 
efforts to upgrade its power systems, has rehabilitated some of its powerhouses and has installed 
new generator sets in some islands. Due to its geographical nature, Maldives has no national grid. In September 2014 STELCO signed an MOU with a Chinese company to develop 100-MW LNG power plant in Thilafushi Island and a 132-kV power grid connecting all islands in the greater Male 
region via subsea cable. In addition, Male and Hulhule will be connected by a 132-kV grid via the 
future Male–Hulhule bridge. In this regard, the Greater Male Central Power Station project has been formulated to interconnect the islands Male, Hulhumale, Villimale, Thilafushi and Gulhifalhu 
by building a central power station in Thilafushi. Feasibility studies are ongoing for the project. 
Whereas, at the time of the previous TPR, the Government considered privatizing STELCO and had 
sought expressions of interest from potential investors, at present there is no plan to privatize 
either STELCO or FENAKA.
35  
4.35.  The Government is developing a medium-term sector plan based on (i) expected growth in 
demand in greater Male and the outer islands, (ii) an evaluation of technology options and choices to be considered for adoption over different time frames, (iii) the nature and modality of 
investment required, and (iv) a risk-mitigation framework to support such investments.
36 The 
Ministry of Environment and Energy (MEE) formulat ed a draft electricity bill to provide a basis for 
policy and regulatory decision making. Accordin g to the ADB, changes in the sector require 
                                               
30 Mahfuz Ahmed and Suphac hol Suphachalasai (2014).  
31 Asian Development Bank online document (undated), "Interim Country Partnership Strategy: 
Maldives, 2014–2015 Sector Assessment (Summary): Energy". Viewed at: http://www.adb.org/sites/default/files/linked-documents/icps-mld-2014-2015-ssa-01.pdf .  
32 World Bank (2014a).  
33 Ministry of Environment and Energy (2012); and online Asian Development Bank document 
(undated), "Interim Country Partnership Strategy: Maldives, 2014–2015 Sector Assessment (Summary): Energy". Viewed at: http://www.adb.org/sites/default/files/linked-documents/icps-mld-2014-2015-ssa-01.pdf . 
34 The authorities indicated that the losses were mainly due to the accounting of finance costs related to 
its 4th power project from 2013 onwards, and a revaluation of  assets which led to a substantial increase in 
depreciation. In spite of the losses, STELCO is able to ma intain a steady cash flow du e to some interest grants 
and other leniencies affo rded by the Government. 
35 The low regulated electricity price was an obstacle to privatization (WTO document 
WT/TPR/S/221/Rev.1, 5 November 2009). 
36 Asian Development Bank online document (undated), "Interim Country Partnership Strategy: 
Maldives, 2014–2015 Sector Assessment (Summary): Energy". Viewed at: http://www.adb.org/sites/default/files/linked-documents/icps-mld-2014-2015-ssa-01.pdf .  WT/TPR/S/332/Rev.1 • Maldives 
 
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  prioritized action on technical, licensing, and other regulations; existing institutions have limited 
capacity to undertake these or other activities.  
4.36.  Electricity tariffs in Maldives are expensiv e by world standards. They are among the highest 
in South Asia, at around US$0.40 per kWh (several times higher than in other countries in the 
region); most families are highly constrained in their use of power even though it is nominally 
available at the socket and subsidies apply.37 The Maldives Energy Authority (MEA), the regulator, 
sets electricity tariffs at domestic, commercial, and government rates based on a November 2009 
tariff methodology and structure; they were last set in 2009 and are the same for all power 
suppliers.38 A correction mechanism through a fuel surcharge whenever the diesel price is above 
Rf 8 per litre was introduced in order to adjust end-user tariffs to the variation in fuel prices, which represent above 80% of total costs. The fuel surcharge mechanism is added to the monthly 
invoices. At a price of about US$1 per litre of diesel, the fuel surcharge amounts to about 45% of 
the final bills.
39 During the review period, the fuel surcharge ranged from Rf 0.06 per kWh to 
Rf 2.47 per kWh. As of March 2015, it represented a 25.7% increase in the highest residential 
tariff and 20.7% in the non-residential tariff.40 According to the authorities, assuming that 
generation and transmission costs represent the total cost of STELCO, it is only marginally covered by the electricity tariffs.  
4.37.  In 2009, the Government also introduced a subsidy scheme for domestic consumers to 
make access to electricity affordable for average households and address rising fuel prices at that time.
41 The electricity tariffs are reduced by these subs idies. Two types of direct subsidies are paid 
for domestic customers: fuel surcharge subsidies and usage subsidies. The fuel surcharge for 
domestic customers (although reflected in the customer's bill) is paid in full by the Government. 
Under the usage subsidy, amounts of up to 400 units are subsidized for those customers who claim it under the social welfare scheme. On average, for certain consumer categories, 40% to 
50% of the customer's bill is written off through government subsidies for the fuel surcharge and 
usage paid to the service providers. According to the authorities, the total amount disbursed each 
year for subsidies for the fuel surcharge and usage was Rf 77.6 million (2010), Rf 165 million 
(2011), Rf 270.5 million (2012), Rf 332.9 million (2013), and Rf 346.4 million (2014) or 0.7% of 
GDP (2014); the fuel surcharge subsidy represents the largest part of these amounts and stood at about 81% of the total amount disbursed in 2014.  Furthermore, cross-subsidies among consumer 
categories are in place; electricity tariffs charged to governmental and business consumers are 
higher than those billed to residential users, although the costs are roughly similar for all 
consumers. As of March 2015, electricity for residential consumers was cross-subsidized by up to 114% higher tariffs charged to commercial, government and "institutes" users.
42  
4.4.2  Hydrocarbons 
4.38.  Maldives remains almost fully dependent on imports of hydrocarbons for its energy mix. The 
sector continues to be characterized by state involvement in the STO (sections 3.2.7, 4.2.2.4, 
4.3.2 and 4.5), which is the leader in the fuel an d gas industry, through its affiliates, i.e. Fuel 
Supplies Maldives (FSM), STO Maldives (Singapore), Maldives National Oil Company (MNOC) and Maldives Gas (MGPL).
43 In addition to the STO, which is the main supplier of hydrocarbon products 
to the Maldives Airports Company Limited, STELCO, FENAKA and a few companies in the private 
sector (e.g. Villa Shipping and Trading Company, Coastline Investment) are involved in the fuel 
supply business. As of 2014, the Government, based on past seismic data, envisaged embarking on ambitious oil and gas exploration in Mald ives with the support of global leaders.
44  
                                               
37 Unknown author, online document, " SREP Investment Plan - Re public of the Maldives" , 7 February 
2012. Viewed at: http://co2.org/wp-content/uploads/2012/12/Maldives-SREP-last-version-from-MM.pdf . 
38 Tariffs for each group are fixed using an ad ho c method (trying to produce small adjustments to 
previously existing tariffs) and a reconciliation test (a ssuring that with the approved tariffs each region is 
capable of collecting the allowed revenues). Ministry of Environment and Energy (2012). 
39 Ministry of Environment and Energy (2012). 
40 STELCO online information, "E lectricity tariffs". Viewed at: http://www.stelco.c om.mv/tariff.php . 
41 Ministry of Environment and Energy (2012). 
42 STELCO online information, "E lectricity tariffs". Viewed at: http://www.stelco.c om.mv/tariff.php . 
43 State Trading Organization (2015). 
44 Oil exploration vessels use seismic airguns to expl ore oil fields under the seabed. The airguns' sound 
waves are among the most intensive and loudest noises mankind is capable of producing, and can be deadly 
for marine animals. Oil exploration acti vities as well as planned test drillings pose a serious threat to the local WT/TPR/S/332/Rev.1 • Maldives 
 
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  4.39.  Fuel is priced based on its international mark et price at the time of purchase (Mean of Platts 
of Singapore). Fuel price subsidies have been provided in fisheries and power production (sections 4.2.1.3 and 4.4.1).  
4.5  Services 
4.5.1  Features 
4.40.  Services continue to be the largest sector  of the economy. The sh are of services in GDP 
remains relatively stable at above 80% and at 90.8% of total exports (goods and services) in 2014 
(Tables 1.2 and 1.3). No total factor producti vity data since 2009 were available from the 
authorities. Tourism remains the most important subsector, followed by government services, transport, real estate, communications and financial services. 
4.41.  The commitments of Maldives under the GATS remain unchanged.
45 Its Schedule of Specific 
Commitments covers very few subsectors in business services (i.e. certain professional services, 
and computer and related services) and there is no list of exemptions. However, it maintains a relatively liberal regime in most service sectors, such as tourism, telecommunications, financial 
services, and transport (although the latter is subject to some cabotage restrictions).  
4.5.2  Tourism 4.42.  Tourism remains Maldives' largest activity and the largest generator of government 
revenue; it accounted for 28.1% of GDP in 2015 and over 6% of total employment in 2010 
(Tables 1.2 and 4.2). However, as tourism is a cross-sectoral industry, which serves as a link and stimulus to almost all other sectors of the economy, such as transport, construction, trade, and financial services, its overall contribution to GDP and total employment were estimated to be 
78.1% and 62% respectively in 2014.
46  
4.43.  Between 2009 and 2014, the number of facilities offering accommodation increased from 
235 to 508, and the number of beds increased by 33.6% (Table 4.2). In 2014, there were 
112 (94 in 2008) resorts, of which 75 (74 in 2008) were leased to locals, 17 (8 in 2008) had 
foreign leaseholders and 19 (12 in 2008) were leased to joint-venture companies. However, in terms of management and operation, 45 (44 in 2008) resorts were managed by locals, 47 (33 in 
2008) had foreign management, and 19 (17 in 2008) were managed by joint-venture firms. In 
tandem with capacity growth, tourist arrivals also showed robust growth, rising by 83.7% during the same period; occupancy also increased whereas tourism receipts per bed night and average length of stay declined (Table 4.2). The composition of tourists is changing as Chinese tourists 
assisted, inter alia,  by improved air services to Maldives (section 4.5.5.2) are compensating for the 
weaker demand from Europe, which is mostly the result of weaker economic conditions in Europe, including the sluggish performance of the Russian Federation's market, and travel advisories that 
followed the political events in Maldives.
47  
4.44.  The industry remains predominantly locally owned, and state involvement was apparently 
increased. The Maldives Tourism Development Corporation (MTDC), which is a means for locals to 
invest in the tourism sector and to address the issue of social imbalances, is partly 
government-owned (45%) and the remaining shares are divided among the population with no more than 0.1% per single person or entity.
48 The Government has allocated 15 islands to MTDC 
for resort development, 9 of which have been identified and already leased to MTDC, while the 
remaining 6 and the schemes through which they w ill be handed to the company are yet to be 
announced. No further information about the number of MTDC-operated resort hotels or the stage of completion of resort developments was available from the authorities. In 2011, the 
                                                                                                                                               
ecosystems. Oceancare online information. Viewed at: 
http://www.oceancare.org/en/silentoceans/actions/maldives/?131/Oil-development-off-the-Maldives-19-NGOs-
file-Statement-of-Concern . 
45 More information on Maldives' GATS commitments may be found, inter alia , in WTO documents 
GATS/SC/101, 30 August 1995 and WT /TPR/S/110, 13 December 2002. 
46 World Travel & Tourism Council (2015); and Ministry of Tourism, Arts and Culture (2013).  
47 Maldives Monetary Authority (2015a); and World Bank (2014b). 
48 WTO document WT/TPR/S/221/Rev.1, 5 November 2009, and MDTC online information. Viewed at: 
http://www.mtdc.com.mv/en/developments/ . WT/TPR/S/332/Rev.1 • Maldives 
 
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  government-owned STO (sections 3.2.7, 3.4.8, 4.2.2.4, 4.3.2 and 4.5.3.2) secured 100% 
ownership of its tourism ventures and in 2012 set up STO Hotels and Resorts Pvt. Ltd. as a separate department of the company. Since 7 Fe bruary 2012, STO Hotels & Resorts Pvt. Ltd. has 
also invested in tourism-related activities including the construction of the Fuvahmulah Airport, the 
Fuvahmulah Airport Emergency Training Programme,  the development of B. Muthaafushi Island as 
a resort, and the Fuvahmulah Airport Lighting Project.
49  
Table 4.2 Tourism indicators, 2009-15  
  2009  2010  2011  2012  2013 2014a 2015a 
Contribution to GDPb (%) 27.3 28.7 28.7 28.4 28.1 27.7 28.1 
Growth of tourism GDPc (%) -5.4 15.8 9.2 -0.1 9.0 6.8 8.3 
Contribution to total government 
revenued (%) .. 26.7 28.0 34.7 35.0 39.8 .. 
 Contribution to tax revenue (%) 19.5 20.4 15.3 11.7 9.7 7.8 .. 
Tourist arrivals ('000) 655.9 791.9 931.3 958.0 1,125.2 1,204.9 .. 
 Percentage change -4.0 20.7 17.6 2.9 17.4 7.1 .. 
Average length of stay (number of 
days) 7.9 7.6 7.0 6.7 6.3 6.0 .. 
Tourism receipts (US$ million) 1,473.0 1,713.0 1,942.3 1,950.6 2,332.7 2,645.2 .. 
 Per bed night (US$) 286.0 246.1 225.6 228.3 208.7 201.8  
Bed occupancy rate (%) 70.3 69.5 73.1 70.4 74.0 74.3 .. 
Bed capacity, resorts/hotels (number 
of beds) 20,137 23,649 24,493 25,062 26,161 26,914 .. 
 Percentage change 5.3 17.4 3.6 2.3 4.4 2.9 .. 
.. Not available. 
a  Estimates. 
b  Based on current prices. c  Based on constant 2003 prices. d  Tourism revenue includes land rent, tourist bed-ni ght tax, tourism goods and services tax, and lease 
period extension fee. 
Source: Maldives Monetary Authority online information. Viewed at: http://www.mma.gov.mv/statis.php ; 
and data provided by  the authorities. 
4.45.  During the period under review, policy in the sector was governed by two masterplans. The 
objectives under the Third Tourism Master Plan ( 2007-2011) were to: facilitate sustainable growth 
and high-level investment in the industry, while enhancing the public share of economic benefits 
from tourism; increase employment opportunities and gainful community participation in the 
industry; develop and maintain supporting infrastruc ture required for the growth of the industry; 
ensure environmental sustainability in the develo pment and operation of all tourism products, and 
strive for global excellence in environmentally-responsible tourism; continue to brand Maldives as 
a unique destination with innovative products and retain its positioning as a top ranking tourist destination in traditional and emerging source markets; and continue to strengthen the legal and 
regulatory framework and the institutional capacity of the Ministry of Tourism. The Strategic Action 
Plan for Tourism under the Fourth Tourism Masterplan 2013-2017 aims at: maintaining Maldives' position in world markets; managing environment and conservation issues; engaging more Maldivians in tourism careers; promoting sensible ways for communities to participate in tourism; 
promoting investment in sustainable growth and high  product quality; and, efficiency in marketing 
and destination management.
50  
4.46.  The Maldives Tourism Act (Law No. 2/99) remains the main piece of legislation regulating 
the leasing of islands for tourism purposes. The Act also stipulates the terms and conditions of the 
lease agreements and is administered by the Mini stry of Tourism. During the review period, the 
Maldives Tourism Act was amended seven times.51 Amendments related, inter alia,  to the 
                                               
49 State Trading Organization (2015). 
50 Ministry of Tourism, Arts and Culture (2013).  
51 Sixth Amendment to the Maldives Tourism Act 42/2014, 17 December 2014. Viewed at: 
https://www.mira.gov .mv/TaxLegislation/Sixth %20Amendment%20to%20the% 20Maldives%20Tourism%20Ac
t_English_20141217_English.pdf  ); and Seventh Amendment to the Maldives Tourism Act 8/2015, 
27 April 2015. Viewed at: 
https://www.mira.gov.m v/TaxLegislation/Seventh_Amendment_to_ the_Maldives_Tourism_Act_English.pdf . WT/TPR/S/332/Rev.1 • Maldives 
 
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  extension of time of lease and the imposition of fi nes, the revocation of licences on failure to pay 
tax, the payment of overdue fees to the Go vernment, and the resumption of taxation.  
4.47.  Under the Act, islands and land must be leased to the best-qualified bidder through a public 
tender.52 The only exemption to the process is if th e Government of Maldives wishes to invest 
either on its own or through a joint venture.53 The Government, represented by the Ministry, is the 
lessor of the resorts and is the owner of all islands developed as tourist resorts. As of 2010, under the second amendment to the Act, lands and isla nds to be developed as tourist resorts may be 
leased for a maximum period of 50 years, starti ng from the date possession of the island is 
granted to the lessee.
54 Under its seventh amendment in April 2015, if the lessee of an island or 
land for the development of a tourist resort or a party requesting to develop a tourist resort on an island or land fulfils certain ownership-related conditions and is a public company registered in 
Maldives, the land or island shall be leased for a period of 99 years.
55 This change is expected to 
support further investment in the tourism industry, since longer leases are more attractive to investors because resorts require significant upfront capital expenditure and a longer lease allows 
investors more time to recoup their initial capital and generate returns on investment.
56 
Furthermore, in July 2015 Maldives amended its national constitution to allow foreign ownership of land (sections 2.2 and 2.6).  
4.48.  Since 2009, about 92 islands or pieces of land have been leased for development. Among 
these, 16 resorts are operational, while 12 are expected to become operational in 2018. To encourage faster development, the Government mainta ins incentives such as relief with regard to 
building completion times, deferment of rent, and deferment of performance bonds.
57 These 
incentives are applicable to all islands and land leased since 2005.  
4.49.  Tourism and tourism-related activities are estimated to generate over 90% of government 
tax revenue including import duties and transportation ‐related taxes.58 During the review period, 
tourism tax policy has undergone some changes in an effort to better align taxes with industry 
realities. Currently, the Government collects  six different taxes from tourism and tourism ‐related 
activities: the Tourism Goods and Services Tax (T-GST) (3.5% in 2011, 6% in January 2012, 8% 
in January 2013, and 12% in November 2014)59; the Bed-Night Tax at US$8 (previously US$6) per 
accommodation bed per night that was scheduled to cease at the end of 2013 but was extended 
until 31 December 2014 and replaced by a green tax as of November 2015; the Land Rent Tax at US$8 per square meter of building (changed from rent per bed); the Business Profit Tax of 15%; the 10% Withholding Tax on payments to non ‐residents for management fees and technical 
                                               
52 More information about the leasing conditions and procedures is available in WTO document 
WT/TPR/S/221/Rev.1, 5 November 2009.  
53 The conditions would be waived to enable the Government to attract potentially large investors in the 
tourism or other sectors of the econom y. For example, if a foreign airline decided to invest in an airline in 
Maldives, the island and land could be offered as part  of the deal for infrastruc ture and tourism purposes. 
54 Initially, as per the Maldives Tourism Act 2/99, land leases varied from 25 to 50 years, depending on 
ownership, size of investment, and listing on the Maldives Stock Exchange. Also if the lessee of an island or land leased prior to this second amendment to the Act were to request an extensio n of the lease period from 
the Ministry of Tourism, that leas e would be extended after payment of a fee. The second amendment also 
allowed a leaseholder to transfer rights to a second party prior to the development and commencement of operations on any resort or hotel.  This was considered as a step towards addressing potential financing 
constraints between leaseholders and investors. Ministry  of Tourism, Arts and Culture (2013); and Ministry of 
Tourism online information. Viewed at: http://www.tourism.gov.mv/do wnloads/act/tourism_act_se cond_ammendment_english.pdf . 
55 These conditions are: the development and operat ion of tourist resorts must form part of the 
"memorandum of association" of the public company; and, a minimum of 55% of the shares of the public 
company must be sold to the public. Seventh Amendment to the Maldives Tourism Act 8/2015, 27 April 2015. Viewed at: https://www.mira.gov.m v/TaxLegislation/Seventh_Amendment_to_ the_Maldives_Tourism_Act_English.pdf . 
56 JLL The Investor online information. Viewed at: 
http://www.joneslanglasalleblog.com/investor/maldivess-new-99-year-lease-spurs-investors-
interest/#sthash.2cMQIiej.dpuf ). 
57 A performance bond is a surety bond issued by an insurance company or bank to guarantee 
satisfactory completion of a project by a contractor. 
58 Ministry of Tourism, Arts and Culture (2013).  
59 A Tourism Goods and Services Tax (T-GST) Act came into effect on 1 January 2011. Under the Act, 
T-GST has been charged on the value of goods and servic es supplied by tourist resorts, tourist hotels, guest 
houses, picnic islands and tourist vessels, and on certain other services supplied by pl aces providing services to 
tourists in Maldives.  WT/TPR/S/332/Rev.1 • Maldives 
 
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  services; and the Airport Service Charge at US$25 (US$18 until 2013) on each non ‐resident 
departure (section 3.4.2.1). During the review period, the tourism sector's share of total 
government revenue (i.e. land rent, T-GST, bed-ni ght tax, and lease period extension fee) rose 
steadily from 26.9% (2010) to 39.8% (2014) (Table 4.2).  
4.50.  Maldives continues to promote environmentally sustainable tourism. Development and 
operational controls for the tourism sector, particularly for tourist resorts, are primarily defined in the Regulation on the Protection and Conservation  of Environment in the Tourism Industry (2006), 
and the Environmental Impact Assessment (EIA) Regulations (2012).
60 The former provides: 
guidelines for planning, construction and operation of tourist facilities from an environmental and 
conservation perspective; specific controls for high impact developments through mandatory impact mitigation measures; and, a framework to undertake and submit environmental monitoring 
throughout the project lifecycle. In line with Clauses 15, 19 and 26 of the Maldives Tourism Act 
(Law 2/99), a regulation for the submission of the Environment Impact Assessment (EIA), 
published on 3 August 2015, requires a detailed Environment Impact Assessment (EIA) report by a 
certified surveyor to be submitted to the Minist ry of Tourism prior to any development on the 
land/island.  
4.5.3  Financial sector 4.51.  The financial sector in Maldives comprises commercial banks, non-bank financial 
institutions, and insurance companies. In 2015, the sector's contribution to GDP was 5.1%, down 
from 6.2% in 2009 (Table 1.2).  
4.5.3.1  Banking  
4.5.3.1.1  Structur e and performance 
4.52.  The financial sector is dominated by the banking industry, which now has seven banks 
operating in the country.
61 They consist of: the majority (51%) state-owned owned Bank of 
Maldives; four branches of foreign banks (Habib Bank Limited, State Bank of India, Bank of 
Ceylon, and Hong Kong Shanghai Banking Corporation); one subsidiary of a foreign bank (Mauritius Commercial Bank); and, as from 7 March 2011, the Maldives Islamic Bank (MIB).
62  
4.53.  In addition to the general insurance market (section 4.5.3.2), the non ‐banking financial 
institutions market remains unchanged and includes a finance leasing company (the Maldives 
Finance Leasing Company – MFLC), a specialized housing finance institution (Housing Development Finance Corporation – HDFC), and a money ‐transfer business.
63 HDFC is partially owned by the 
Government of Maldives with a stake of 48.9% an d the rest is held by the International Finance 
Corporation (IFC), Asian Development Bank (ADB) and HDFC Investment Pvt. Ltd. (India). MFLC 
was privatized in 2014 and is 100% locally owned. The HDFC provides financing for the development of residential and commercial real estate, and the MFLC supplies medium-term finance for consumer durables for households and professional services.  
4.5.3.1.2  Legislative and institutional framework  
4.54.  During the review period, there were several developments in the legal framework 
governing the sector.
64 A Maldives Banking Act (Law No. 24/2010) was enacted in 2010 and 
amended by Law No. 3/2015 (First Amendment) in 2015. The Act regulates licensing; financial, 
                                               
60 More information about the environmental requirements governing the sector is available in WTO 
document WT/TPR/S/221/Rev.1, 5 November 2009; and Ministry of Tourism, Arts and Culture (2013). 
61 Ministry of Tourism, Arts and Culture (2013).  
62 The MIB, the first Islamic bank (based on Islamic Shariah principles) to operate in Maldives, is 85% 
owned by the Islamic Corporation for Development of the Private Sector (I CD) and 15% by the Government of 
Maldives. Maldives Monetary Authority online information. Viewed at: http://www.mma.gov.mv/fi.php?itm=6 . 
At the time of the previous TPR the State Bank of In dia had a 41% market share; the Bank of Maldives, 43%; 
Bank of Ceylon, 3.5%; Hong Kong Shanghai Bankin g Corporation, 9%; the Mauritius Commercial Bank 
accounted for 1.5% of the market; and, Habib Bank Limited had a 2% share.  
63 Ministry of Tourism, Arts and Culture (2013). 
64 Maldives Monetary Authority online information. Viewed at: 
http://www.mma.gov.mv/laws/bankactenglishnew.pdf , http://www.mma.gov.mv/laws.php#other , 
http://www.mma.gov.mv/laws.php , and http://www.mma.gov.mv/laws/sezacteng.pdf . WT/TPR/S/332/Rev.1 • Maldives 
 
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  prudential, and supervisory matters; and conservatorship, liquidation and receivership of banks in 
Maldives. An Islamic Banking Regulation 2011 now deals with similar matters relating to the Islamic banking business and related supervisory matters. The Special Economic Zones Act (24/2014) now provides, inter alia,  for exemptions from the withholding tax, the business profit 
tax and the GST for a certain period for activities established in these zones (sections 3.4.2.3 and 
4.3.3). A Prevention of Money Laundering and Terrorism Financing Act (10/2014) was enacted to criminalize these activities, provide preventive measures, and establish a Financial Intelligence 
Unit for receiving, analysing and disseminating financial transaction information. The Financial 
Intelligence Unit was established in October 2014 and received 14 suspicious transaction reports from financial institutions; information contained in 3 of these reports has been passed to Maldives' Police Service for further investigation. Furthermore, the MMA has issued enforcement 
regulations relating to the Act to banks, life insurance institutions, money remittance institutions 
and money changers. On 1 October 2015, the existing regulation on NGOs was amended and a new chapter was added to ensure that they are not used as a means for money laundering 
activities and for financing terrorism; a standardized way of reporting their funding and 
conditionality was introduced. 
4.55.  The Shariah Council is, inter alia,  responsible for validating all Islamic banking and finance 
operations to ensure their compatibility with the Shariah principles, as well as for establishing a 
framework to harmonize Shariah interpretations in accordance with Islamic law and strengthen the regulatory and supervisory oversight of the Islamic banking and finance industry.
65 During the 
review period, it deliberated on multiple issues including various new product structures, as well as 
proposals by and authorization to two conventional financial institutions to establish windows to 
offer Islamic financial products and services. An Islamic debt security (Sukuk) was introduced to the capital market by the HDFC in 2013 for the first time.
66 At the same time, the Council 
endorsed and put into practice a guideline aime d at streamlining and standardizing its approval 
process. On 22 January 2015, the Bank of Maldives inaugurated its Islamic Banking Window with the launch of its Wadhiah deposit.  
4.56.  Banks in Maldives are regulated by the Maldives Monetary Authority (MMA) and in addition 
to the Maldives Banking Act (Law 24/2010) they ar e subject to 11 prudential regulations issued in 
2009 and revised in 2015. Under the Act, all banks (both foreign and domestic) require a licence from the MMA to start banking operations in Maldives. The MMA, which conducts regular 
supervision of the banks, can order an examination of an institution, and if any bank is found to be 
financially unsound or acting unlawfully, the MMA prescribes steps to rectify the situation. All commercial banks must have at least Rf 150 million as paid-up capital and maintain a minimum 
capital adequacy ratio (CAR), the total risk-w eighted CAR being 12%. The key requirements 
related to lending limits stipulate that a bank may not advance credit to any single entity (person or related persons) in excess of 15% of the bank's capital base, or up to 30% in specific low-risk 
circumstances. In the case of a corporate group,  the exposure is limited to 40% of the bank's 
capital base. Furthermore, an additional 10% of capital base is allowed for infrastructure lending as per the revised prudential regulations of 2015. To facilitate private sector lending and to reduce the cost of borrowing for the commercial banks, the minimum reserve requirement (MRR) for 
banks was reduced from 25% to 20% (20 February 2014) and 10% (20 August 2015) of the 
average local and foreign currency deposits, excluding interbank liabilities and L/C margin deposits; banks that fail to meet the MRR are subject to a penalty of 18% per annum on the 
shortfall amount.
67  
4.57.  Between 2009 and 2014, Maldives' banking sector's capital adequacy ratio rose from 25% 
to 45%; within virtually the same period the capital to assets ratio grew from 16.4% to 22.8% (3rd 
quarter 2014).68 According to the IMF, a firmer approach to supervision remains necessary. Banks 
are broadly in compliance with prudential regulati ons, though one bank has apparently breached 
single borrower limits and another the foreign curre ncy exposure limits. Nonetheless, the accuracy 
of financial soundness indicators deserves close scrutiny. The MMA has resisted pressure to count 
capital held offshore when calculating compliance with single borrower limits. Standards for 
financial institutions that may set up in special economic zones (SEZs) should be equivalent to 
                                               
65 The prohibition of Riba, or inte rest, is perhaps the most well-kno wn Shariah principle relating to 
financial transactions. Maldives Monetary Authority (2014). 
66 Maldives Monetary Authority online information. Viewed at: http://www.mma.gov.mv/fs.php . 
67 Maldives Monetary Authority online information. Viewed at: http://www.mma.gov .mv/mpolicy.php . 
68 IMF (2015).  WT/TPR/S/332/Rev.1 • Maldives 
 
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  those onshore, with similar prudential, superv isory and reporting requirements. The MMA is 
working to strengthen supervision and regula tions are being developed to supplement the 
legislation on SEZs. On 14 June 2015, the Regulation for offshore banks operating in the SEZs was published and as of end-October 2015 the Financ ial Sector Development Unit of MMA was working 
on drafting the prudential regulations for offshore banking.  
4.58.  According to the authorities, as of July 2015, tourism loans given to private sector and non-
financial corporations accounted for 32% of the banking sector's total lending. In the banking 
sector, in 2014 the main area of concern continued to be credit risk, as indicated by the high level 
of poor-quality loans, though non-performing loans (NPLs) in the tourism and construction sectors are falling back from high levels built up during the global financial crisis. Between 2009 and 2014, the share of NPLs to total loans peaked in 2012 at  21%, and then declined to 16% in June 2015 as 
a result of a few large recoveries relating, inter alia,  to better performance in the tourism sector.
69  
4.59.  According to the IMF, bank profitability has increased.70 Between 2009 (January) and 2015 
(May), Maldives' banks' interest spread (diffe rence between average borrowing and lending rates 
in nominal terms) oscillated around 6.7 percentage  points (Chart 4.1). Changes in the spread are 
an indicator of profitability as the spread is where a bank makes its money.71  
Chart 4.1 Interest rate spread (%), January 2009 to May 2015 
02468101214Lending rate
Deposit rate
Interest spread
 
Source: IMF online information, "International Financial Statistics". 
 
4.5.3.2  Insurance 
4.60.  During the review period, the insurance sector remained unchanged with no new entries in 
the market. It comprises three insurers: the Alli ed Insurance Company, owned by the STO since 
1985 (sections 3.2.7, 4.2.2.4, 4.3.2 and 4.5.2); the Ceylinco Insurance Company Pvt. Ltd.; and 
Amana Takaful (Maldives) Pvt. Ltd.; with only one (Allied) offering life insurance, although more 
are expected to develop.72 Currently there are 27 insurance agents and 6 insurance brokers. The 
Guideline for the Administration of Insurance Agen ts 2010 allows agents to only represent locally 
                                               
69 IMF (2015); and Maldives Monetary Authority (2015a).  
70 IMF (2015); and Maldives Monetary Authority (2015a).  
71 Moneyterms online information. Viewed at: http://moneyterms.co.uk/interest-spread/ . 
72 Prior to 2010, Amana Takaful and Ceylinco Insurance were operating in the local market as agents of 
foreign insurers, while Sri Lanka Insurance Corporation, which left the market in 2011, operated as a branch. 
All the insurance service providers in Maldives were incorp orated (i.e. turned from branch of a foreign firm into 
a locally registered company) on 4 March 2010. Maldives Monetary Authority online information. Viewed at: http://www.mma.gov.mv/fi.php?itm=14  and http://www.mma.gov.mv/fs.php . WT/TPR/S/332/Rev.1 • Maldives 
 
- 67 - 
 
  licensed insurers. Similarly, the Guidelines for Insurance Brokers 2011 allow brokers to only solicit 
policies from locally licensed insurers. Nevertheless, it seems that the volume of the Maldivian insurance industry remains low and lags behind other South Asian markets.
73 The market seems 
far from being saturated and there is potential for further development.74 The growth of Shariah 
compliant insurance (Takaful insurance), and the introduction of mandatory third-party motor 
vehicle liability insurance in 2012, were amon g the sources of the industry's growth.75 Tourism is 
to become a source of growth for the insurance sector with new insurance products created in 
partnership with the Government and other key st akeholders. Strong competition is expected in 
tourism-aligned insurance products such as travel and diving insurance. As a result, as of 2014 the Allied Insurance Company introduced, inter alia,  an Islamic Takaful Window (Ayady Takaful), a 
Select Gold Health Insurance Plan, and an Inbound Travel Insurance Plan targeting tourists visiting 
the country.
76 Fire insurance continues to be the single largest class of insurance business, 
accounting for 37% of the total premium, while marine insurance accounted for 18% of the total premium in 2014.
77 
4.61.  Minor changes were made to the legal fram ework governing the insurance industry including 
the Guideline on Application Fees for Insurance Businesses 2010, the Guideline on Annual Fees for 
Insurance Businesses 2010, the Guideline on Pruden tial Requirements for Insurance Undertakings 
2010, and the Guideline for the Administration of Insurance Agents 2010.78 Additionally a 
Guideline on Fit and Proper Criteria for Insurance Undertakings regarding the suitability of major shareholders, directors, chief executive officers, actuaries, or any person who participates in policy making functions or is responsible for any material portion of the insurance business came into 
effect on 1 October 2013. Insurance companies remained subject to the Insurance Industry 
Regulations, which were extended until 30 April 2014 and are administered by the Maldives Monetary Authority (MMA), the main regulatory  body and the licensing authority. Under the 
18 August 2015 amendment to the Maldives Monetary  Authority Act, supervision and regulation of 
insurance was included in the Act and consequently the Insurance Industry Regulations were given permanent status under the Act. Authorized insu rers are required to submit detailed quarterly 
accounts to the MMA. The minimum paid-up capital requirement for insurers was amended by the 
Guideline on Prudential Requirements for Insu rance Undertakings 2010; it was increased from 
Rf 250,000 for non-life insurers and Rf 350,000 for li fe insurers to Rf 10,000,000 for both types of 
insurance business (life or general insurance).  
4.62.  With assistance from the World Bank's Fostering Innovation through Research, Science and 
Technology (FIRST) initiative, the MMA initiated a project to establish a supervisory regime for the insurance sector, including the drafting of an Insurance Act (still in progress at end-October 2015), 
other subsidiary regulations and standard templates and procedure for collecting reporting 
returns.
79 In 2013, a Memorandum of Understanding on Insurance Sector Regulation was signed 
between the MMA and the Insurance Board of Sri Lanka (IBSL) with regard to cooperation in the 
field of supervision and regulation of insurance companies and insurance intermediaries, including 
companies seeking registration as insurers and insurance intermediaries.80  
4.5.4  Telecommunications  4.63.  The telecommunications sector continues to play a key role in linking the different island 
and resort communities; all inhabited and some uninhabited islands have access to telephone 
                                               
73 BusinessWire  online information, "Researc h and Markets: The Insurance In dustry in the Maldives, Key 
Trends and Opportunities to 2017", 15 July 2013. Viewed at: http://www.businesswire.com/news/home/20130715005492/en/Research-Markets-Insurance-Industry-
Maldives-Key-Trends . 
74 Commonwealth of Nations onli ne information. Viewed at: 
http://www.commonwealthofnations.org/sectors-m aldives/business/insurance_and_reinsurance/ . 
75 Takaful, an Islamic insurance concept observing the rules and regulations of Islamic law, is a 
cooperative system of reimbursement or repayment in ca se of loss, paid to people and companies concerned 
about hazards, compensated out of a fund to which they  agree to donate small re gular contributions managed 
on their behalf by a Takaful Operator. Takaful insura nce was introduced into the market by Amana Takaful 
company. Allied insurance was grante d permission to operate a Takaful wi ndow in 2013. Maldives Monetary 
Authority (2014). 
76 State Trading Organization (2015). 
77 Maldives Monetary Authority (2014). 
78 Maldives Monetary Authority (2014). 
79 Maldives Monetary Authority online information. Viewed at: http://www.mma.gov.mv/fs.php . 
80 Maldives Monetary Authority (2014). WT/TPR/S/332/Rev.1 • Maldives 
 
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  services. Following a peak of 7% in 2010, the co ntribution of the telecommunications sector to 
GDP dropped to 5.2% in 2014 (Table 1.2). Between 2010 and 2014, the number of fixed telephone lines was reduced by 24.3% to 21,478 with teledensity declining from 8.9% (2010) to 6.3% (December 2014), whereas mobile phone subscribers rose by 34.7% to 665,818 and mobile 
teledensity rose from 154.6% to 194.8% (December 2014).
81 Although mobile subscribers are still 
increasing, albeit at a slower pace, as from 2013 mobile subscriber growth has been "flattening 
out" and the market's attention shifting to new generation offerings of more advanced services 
(3G and 4G services).82 At the same time, broadband subscriptions grew more than fivefold to 
191,935. In 2013, Maldives ranked 85th out of 166 countries (82nd in 2012) in the ITU's 
information and communication technology (ICT) index and 60th in the ICT price basket.83  
4.64.  State involvement in telecommunications has been somewhat reduced in recent years. 
Fixed-line (including national and international long-distance) and internet services continue to be 
provided by the no longer majority state-owned Dhivehi Raajjeyge Gulhun Pvt. Ltd. (Dhiraagu); its 
monopoly for the provision of fixed-line services expired at the end of 2008, but no new provider 
has entered the fixed-line market as the current industry trend consists of moving towards mobile 
and broadband services. Dhiraagu's shareholding was opened to public investment in late 2011 when an IPO saw the Government sell off some of  its stake, and Bahrain's Batelco acquired the 
whole of C&W Communications' stake and more in Dhiraagu during 2013.
84 The current 
shareholding of Dhiraagu stands at Batelco 52%, Government of Maldives 41.8% and the public 6.2%. The mobile sector continues to have two providers, Dhiraagu and Ooredoo (called Wataniya Telecom until 2013), a foreign-owned private company; by the end of 2014 the latter, licensed to 
provide mobile services in 2005, had around 40% of the market. Focus Infocom Pvt. Ltd., a 
private company, and Dhiraagu continued to operate as the two internet service providers (ISPs) until July 2015 when Ooredoo Maldives was license d as the third ISP of the market. With the 
internet market predominantly being controlled by  Dhiraagu, this opening is expected to bring a 
healthier level of competition conducive to bringing down prices and enhancing the quality of services.
85 Unlike the fixed broadband market, the mobile broadband market is more evenly 
shared between Dhiraagu and Ooredoo Maldives wi th the latter having a 52.4% market share.  
4.65.  At the time of Maldives' previous TPR, it was indicated that despite a significant decline, 
telecommunications rates remained relatively high presumably due to the lack of sufficient competition in the sector, as Dhiraagu was the dominant player in the market.
86 Mobile rates were 
slightly higher than in other regional countries like India; however, international call rates were 
lower than in India and Sri Lanka. According to the authorities, since the introduction of market liberalization of both fixed, internet and mo bile services in 2003 and 2005 respectively, telecom 
tariffs have dropped rapidly. Mobile services including mobile broadband services are said to be 
now available at comparable rates to similar service providers in the region. No time series of such data was available from the authorities.  
4.66.  The Telecommunications Policy 2006-2010 aimed to, inter alia:  ensure that 
telecommunications charges are non-discriminatory, affordable and cost oriented; improve the telecommunications infrastructure to provide basic, enhanced, and broadband services throughout the country; ensure autonomy of the Regulatory Authority by law with clearly defined powers and 
resources to effectively carry out its duties to protect consumer and operator interests; and 
increase competition. In this regard, the "one service one tariff" regime, whereby mobile phone 
                                               
81 Communications Authority of Maldives online data. Viewed at: 
http://www.cam.gov.mv/Statistics_2010_to_2014.htm , and 
http://www.cam.gov.mv/Statistics_monthly2014.htm . 
82 Budde online report/information. Viewed at: http://www.budde.com.au/Research/Maldives-Telecoms-
Mobile-and-Broadband.html . 
83 International Telecommunication Union (2014). 
84 Dhiraagu was a joint-venture between the Government (55%) and Cable and Wireless (45%) until 
2011. WTO document WT/TPR/S/221/Rev.1, 5 November 2009 and Budde online report/information. Viewed at: http://www.budde.com.au/Research/Maldiv es-Telecoms-Mobile-and-Broadband.html . 
85 Focus Infocom with majority shareholding (80.76% ) by Platinum Capital Ho liday (PCH) and minority 
shares distributed among various local individuals and companies, has 23.7% of the fixed broadband market 
share (December 2014) while Dhiraagu has the rest.  
86 Regulations on pricing and market dominance apply to Dhiraagu in sectors where it is the dominant 
player in the market. WT/TPR/S/332/Rev.1 • Maldives 
 
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  calls between any two points in Maldives would cost the same, was implemented and is now in 
place (see below).87  
4.67.  A National Broadband Policy 2014-2018 was issued in February 2014.88 In addition to 
specifying an 18-month timeline for universal broadband access, extending broadband Internet 
access to all the inhabited islands of the country, the Policy requires ISPs to offer a "Basic 
Broadband Package" which gives speeds and usage al lowances sufficient for the typical needs of 
the average person, at a price that does not exce ed 4% of the GDP per capita. Furthermore, the 
Communication Authority of Maldives (see below) will specify minimum service quality standards 
for the Internet service offered by ISPs and monito r the actual service levels to ensure that they 
are being met. It also calls for 100 Mbps high speed broadband services to be available at all commercial and industrial centres of the country. 
4.68.  The 2003 Maldives Telecommunications Re gulation, as amended in 2008 to include the 
regulation of postal services and information technology, remains unchanged.
89 It is the legal 
instrument for the telecom industry and it is to remain in force until a Telecommunication Bill is 
passed. A Telecommunications Bill was submitted to  Parliament in July 2015 and was expected to 
come into effect before the end of the year. The Communications Authority of Maldives (CAM) remains in charge of, inter alia,  developing a fair and competitive telecommunications industry, 
issuing and administering telecommunications licences, approving all new service changes and any 
price changes, and, reviewing the Telecomm unications Regulations every five years. 
4.69.  Mobile number portability, or the ability for mobile phone users to change their mobile 
service provider without changing their mobile ph one number, was to be introduced in Maldives 
before the end of 2015; it is expected to make th e mobile market even more competitive, leading 
to increased quality of service and more choice for customers.
90 A 6% goods and services tax 
(GST) tax for telecommunication services was introduced as of 1 May 2014.91  
4.70.  Despite the lack of a universal access policy per se , Dhiraagu is obliged to provide universal 
access to telephone services in Maldives' 200 inhabited islands through the installation of at least two payphones on each of these islands.
92 The Government does not maintain a specific universal 
access fund to support the advancement of univers al access goals, but requires operators to 
provide mobile services and dial-up Internet co nnection at reduced rates for educational and 
healthcare activities.  
4.5.5  Transport 
4.71.  During the review period, the transport sector's contribution to GDP oscillated around 7.3% 
(Table 1.2). Maldives' geography – while a central attribute for the tourism industry – imposes high costs and challenges in terms of public service provision, including in transportation.
93 Due to 
the nature of Maldives' geography, maritime transp ort services are the most widely used mode of 
                                               
87 At the time of the previous TPR a basic teleco mmunication package was to  be available to all 
inhabited islands by the end of 2008. The package was to include 90 minutes of national voice calls and 250 MB of internet access at a minimum speed of 56 K bps, to be available on request at no more than 
Rf 200 per month. No further information on this package was available from the authorities in this respect at end-October 2015.  
88 Ministry of Transport and Communication press release, "All Inhabited Islands in the Maldives Will 
Have Access to Broadband Internet within 18 Months - Minister Ameen", 24 February 2014. Viewed at: http://motc.gov.mv/index.php/en/press-office/news-release/item/87-all-inhabited-islands-in-the-maldives-will-have-access-to-broadband-internet-within-18-months-minister-ameen, and http://www.cam.gov.mv/docs/policy/National_Broadband_Policy2014_2018.pdf .  
89 More information about the legal and institutional framework governing the sector is available in WTO 
document WT/TPR/S/221/Rev.1, 5 November 2009. 
90 Ministry of Transport and Communication press rele ase, "Mobile Number Portability to be introduced 
by August 2015", 24 February 2014. Viewed at: http://motc.gov.mv/index.php/en/press-office/news-release/item/89-mobile-number-portability-to-be-introduced-by-august-2015. 
91 Online Dhiraagu announcement, "GST will be charged on all Telecommunication Services from 1st May 
2014", 22 April 2014. Viewed at: https://www.dhiraagu.com.mv/GST_wil l_be_charged_on_all_Te lecommunication_Servic es_from_1St_May_201
4.aspx ; and World Bank (2014b).  
92 International Telecommunication Union News, "Maldives - Moving up the development ladder", 
July/August 2011. Viewed at: https://www.itu.int/net/it unews/issues/2011/06/22.aspx .  
93 IMF (2015). WT/TPR/S/332/Rev.1 • Maldives 
 
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  transport, followed by air transport services. According to the World Bank's Logistics Performance 
Index 2012, Maldives ranked 93rd in the quality of trade and transport related infrastructure, 117th 
in the ease of arranging competitively priced shipments, 81st in competence and quality of logistics 
services, and 102nd in the frequency with which shipments reach the consignee within the 
expected delivery time out of 155 countries and behind other peers in South Asia, like India, 
Pakistan, and Sri Lanka.94  
4.72.  Maldives is considering ways to develop regional hubs and improve transport connectivity 
to, inter alia,  encourage voluntary resettlement.95 This would enable higher quality service 
provision at lower cost in interdependent key areas such as education. The Government is also planning two large infrastructure projects, i.e. airport expansion and a road bridge between Male and the airport, financed by official bilateral loans. To address environmental challenges from 
tourism and infrastructure development, the Unit ed Nations is encouraging the development of a 
comprehensive long-term national climate change adaptation strategy which could help mobilize 
grants and concessional loans.   
4.73.  Following institutional restructuring in 2014, the Ministry of Economic Development (MED) is 
now in charge of matters relating to maritime, land and sea transportation, whereas the Civil Aviation Authority (CAA) under the Ministry of Tourism has been in charge of regulation pertaining 
to aviation since 2012; prior to 2014 the Ministry of Transport and Communication was in charge 
of matters relating to transport and communication. The Transport Authority of Maldives (under the Ministry of Economic Development) regulate s and promotes the development of maritime and 
land transport. It also sets policies to mitigate the negative impact of transport on the 
environment, sets vessel and vehicle safety standards, and implements land and maritime 
regulations. The Authority provides, inter alia,  registration services for vehicles and vessels, and 
roadworthiness and vessel safety certificates, and promotes and issues certification for Maldivian 
Seamen.  
4.74.  Under Section 16 of the Business Profit Tax Act (Law No. 10/2011), as from 2010, a 
non-resident owner or charterer of a ship or aircraft may be exempt from the tax if the 
Commissioner General is satisfied that reciprocal treatment for business profit tax or any other 
similar tax is granted by the taxpayer's country of residence to a Maldivian-resident taxpayer.
96 
The authorities indicated that this practice is in line with the international best practice of taxing airlines and shipping companies only by their country of residence. 
4.5.5.1  Maritime transport 
4.75.  As of January 2014, ten cargo vessels with a capacity of 50,000 dead-weight tons were 
registered at Maldives; half of this tonnage was locally owned.
97 As of May 2014, Maldives' 
container-ship fleet was operated by 3 companies and consisted of 5 vessels with a total carrying 
capacity of 12,871 TEUs (twenty-foot equivalent unit).  
4.76.  According to the National Development Plan 2006-2010, the holistic development of 
Maldives requires an efficient maritime domestic transport network.98 The authorities focused on 
building harbours and access points in all the islands in the country. Each year, government funds are allocated for upgrade and renovation of the harbour. Public sector investment projects include harbour development to facilitate transportation access.  
4.77.  Inter-island services remain deregulated and prices determined by prevailing conditions; 
nevertheless, in an effort to promote these services, as from 2008 the MED has signed a number of agreements with operators that regulate prices  and provide subsidies to cover costs. Although a 
number of ferries are operated by island communities, private parties and the majority 
state-owned Maldives Transport and Contracting Company (MTCC), which represents one third of the market, the scheduled ferry services network is very limited. Foreign-flag vessels cannot 
provide passenger and cargo transport activities. Most of the inter-island cargo and passenger 
                                               
94 World Bank (2014b). 
95 IMF (2015). 
96 Maldives Inland Revenue Authority online information. Viewed at: 
https://www.mira.gov.m v/Tax_Treaties.aspx . 
97 UNCTAD (2014).  
98 Maimoona Aboobakuru (2014). WT/TPR/S/332/Rev.1 • Maldives 
 
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  traffic is carried by traditional boats ( dhonis)  of various sizes. Tourism resorts operate their own 
services using a variety of boats to transport guests. The Foreign Tourist Vessel Regulation 2008, last amended in 2010, requires the appointment of an agent in Maldives authorized by the 
Maldives Customs Service; permits and authorizations from all relevant government authorities for 
such a vessel to enter and harbour in domestic waters are issued for a maximum period of 
90 (ninety) days from the day the vessel has been provided with inward clearance.
99  
4.78.  No new port facilities have been put into operation since 2009. Maldives has three 
international sea ports: Male Commercial Harbour (MCH), and two regional harbours, 
Khulhudhuffushi (North), and Hithdhoo (South). Between 2009 and 2012,  the number of ships 
handled increased by 38.8% to 580 per year, and the number of containers handled by 24.7% to 
54,820 twenty-foot equivalent units (TEUs).100 At the time of the previous TPR, space limitations 
made MCH very congested, causing average harbour times of 7 days for front-loading vessels and 
17 days for side-loading vessels. Consequently, cost s at MCH were relatively high. The absence of 
container-handling cranes (ship-to-shore) and a yard management system (RTG/tractor-trailer 
system) also added to costs. According to World Bank data, the cost and time to import or export 
a container was 22 days and US$1,610 and 21 days and US$1,625 respectively in 2014, two times more expensive than Sri Lanka.
101 According to the authorities, the vessel service time was in the 
same year 2.23 days and stevedoring charges for a TEU stood at US$195.50 (laden); charges, last 
set in 2012, differ depending on whether the container is empty or laden.102  
4.79.  The wholly state-owned Maldives Ports Limited continues to operate all international 
ports.103 Since 2008, all ports have been regulated by the Transport Authority of Maldives.  
4.5.5.2  Air transport 
4.80.  The air transport sector remains regulated under the Civil Aviation Act 2001. The Act 
specifies conditions for, inter alia : air operators' licences; crew and pilot registration; air 
worthiness; registration of aerodromes; and safety inspections and procedures. Relevant rules and 
regulations must be at least at the level stated in the Annexes to the Convention on International Civil Aviation and the authorities indicated that at present they comply with all of its annexes.
104 
The rules allow the Civil Aviation Authority to conduct financial surveillance of existing carriers if 
there are signs of service deterioration. As of 1 July 2014, the Airport Service Charge was 
increased by 38.9% to US$25 on each non ‐resident departure (section 4.5.2).105  
4.81.  A Civil Aviation Authority (CAA), established in 2012 to replace the Civil Aviation 
Department (CAD) in the then Ministry of Tour ism, Arts and Culture, aims to develop and 
administer policies and regulations to ensure safe, secure, orderly and economic development of aviation in Maldives.
106 The main tasks of CAA are setting up national safety standards that are 
compliant with international standards; and economic and safety regulation through regulation of 
airports, air traffic services and airlines.  
4.82.  During the review period, the supply of in ternational airline services was strengthened. The 
Maldivian airline company, which is owned and operated by the wholly government-owned entity 
Island Aviation Services (see below), increased its overseas services.107 Two other companies, Villa 
Air (since October 2011) and Mega Maldives (since 2010), a joint venture with private investors 
                                               
99 Foreign Tourist Vessel Regulation – June 2010. Viewed at: 
http://www.tourism.gov.mv/downloads/vessel_regulations/Foreign_Vessel_Regulation_eng.pdf . 
100 Maldives Ports Limited online data. Viewed at: http://www.port.com.mv/port-statistics/ . 
101 World Bank (2014a).  
102 Maldives Ports Limited, "MPL Tariff". Viewed at: http://port.com.mv/wp-
content/uploads/2012/02/Web-Revised-tarifff-2012-1.pdf . 
103 Maldives Ports Limited online information. Viewed at: http://www.port.com.mv/ . 
104 WTO document WT/TPR/S/221/Rev.1, 5 November 2009. 
105 Eleventh Amendment to the Airport Service Charge Act 15/2014, 5 May 2014. Viewed at: 
https://www.mira.gov .mv/TaxLegislation/Eleve nth%20Amendment%20to%20the %20Airport%20Service%20C
harge%20Act%20(English).pdf .  
106 Act No. 02/2012, 11 January 2012. Maldives Civil Aviation Authority online information. Viewed at: 
http://www.aviainfo.gov.mv/ . 
107 In addition to daily flights to Trivandrum, Maldivian expanded its destinations to: Chennai, India and 
Dhaka, Bangladesh (2012); Chongqing, China (2013); Wuha n, China (2014) and Xi'an, Nanjing and Changsha, 
China (2015). Maldivian online information. Viewed at: http://maldivian.aero/corporate/about-maldivian.html . WT/TPR/S/332/Rev.1 • Maldives 
 
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  from the United States, entered the market; they now operate to selected locations in the country 
as well as a few international destinations.108 Foreign airlines operate scheduled services to Male's 
Ibrahim Nasir International Airport (INIA).109 The international connectivity increased rapidly 
during the review period. At the end of 2014, 34 airlines from 17 countries (31 scheduled and 
3 charter airlines) connected Maldives directly to 23 countries. 
4.83.  Similar to international routes, the dome stic air transport market grew significantly. 
Between 2009 (September) and 2014 the number of passengers and weight of cargo carried on 
domestic routes increased by 107.4% and 64% respectively. Island Aviation Services, Trans 
Maldivian Airways (a private firm), and Flyme (operated by Villa Air as from 1 October 2011) provide domestic air services between the island s. Trans Maldivian Airways, which in 2013 merged 
with Maldivian Air Taxi (PTE) Ltd. (MAT) – one of the largest seaplane operators in the world, 
solely operates seaplanes to transfer passengers to  resorts while Island Aviation Services operates 
both wheel-based aircrafts and seaplanes.
110 A lower GST rate of 6% has benefited the domestic 
air transport of locals since 2014 (section 3.4.2.1). 
4.84.  Maldives maintains an open skies policy in both the international and domestic aviation 
market (see below). There are no restrictions on foreign investment or entry into the market; however, there are cabotage restrictions, i.e. no foreign operators can service domestic routes.  
4.85.  During the review period, Maldives' airport capacity increased considerably. At present, 
Maldives has eleven airports compared to five at the time of the previous TPR; four (Ibrahim Nasir 
International Airport/Male, Gan, Hanimaadhoo, Maamigili/Villa) serve international routes and seven are for domestic flights only.
111 Airports in Maldives receive navigational services from the 
state-owned Maldives Airports Corporation Ltd. (MACL) which operates the Ibrahim Nasir 
International Airport. MACL is also a partner in  the recently incorporated joint venture company 
Gan International Airport Pvt. Ltd. (GIA) in which it has an equal share with other state-owned 
partners, namely the STO and Gan Airport Company Limited (GACL) operating the Gan 
International Airport (section 4.2.2.4).112 To promote tourism and other economic activity in the 
southern part of the country, a joint venture, th e Addu International Airport Pvt. Ltd. (AIA), was 
formed between GACL, MACL and the STO in ea rly 2012 to further develop and expand the Gan 
International Airport. Regional airports are overse en by the Ministry of Tourism, and managed and 
operated by either the Ministry's Department of Regional Airports (2) or private companies (5 leased); on the other hand, MACL provided avia tion fuel services and airport firefighting and 
rescue services to all regional airports developed and owned by the Government, as well as Gan 
International Airport, until 25 February 2011 as from when the STO was entrusted with the supply of fuel services and the operating entities with  the firefighting and rescue services. As of 2014, 
there were plans to develop and operate four new domestic airports (Haa Alifu Huvahandhoo, Alifu 
Alifu Mathiveri, Faafu Magoodhoo, and Meemu Muli) as well as to expand the Hanimaadhoo International Airport under a public-private  partnership (PPP) model including several 
incentives.
113 At end-October 2015, the development of three airports (N. Maafaru, Gdh. 
Maavarulu, Dh. Kudahuvadhoo) was ongoing, and proj ects for another three (Alifu Alifu Mathiveri, 
Faafu Magoodhoo, Meemu Muli) were opened for bid. 
4.86.  Maldives, a signatory to the Montreal Convention for the Unification of Certain Rules for 
International Carriage by Air, was audited under the International Civil Aviation Organization's 
(ICAO) universal Security Audit Programme in 2010 and 2014 and found to be below global 
                                               
108 Maimoona Aboobakuru (2014).  
109 In 2015, INIA was to complete construction of a new apron on the northern side to accommodate for 
the increase in domestic operations and overlay of the existing runway started in August 2015. Commencement of a parallel runway was anticipated to start by the end of 2015. A project for new terminal expansion by 2018 is under way.  
110 In 2013, the United States equity fund Blackstone Group announced that they were acquiring both 
MAT and rival company Trans Maldivian Airways (TMA).  A merger was brought underway and a new company 
was founded, retaining the Trans Maldivian Airways name, and the colours of MAT. 
111 The domestic airports are: Dh aravandhoo, Fuvahmulah, Ifuru, Ka adedhdhoo, Kadhdhoo, Kooddoo, 
and Thimarafushi. 
112 Maldives Airports Corporation online information. Viewed at: 
http://www.macl.aero/plus/S_CORPORATE/28/5 . 
113 The developer will develop and operate the airport fo r a period of 25 years, and will be eligible to 
acquire one or two virgin islands, free of acquisition cost, to develop tourist reso rts for a lease period of 
50 years. In addition, im port duty exemption and concessional land le ase rates on the airport will be available. 
Investors may propose alternatives. Ministry of Transport and Communication (2014). WT/TPR/S/332/Rev.1 • Maldives 
 
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  standards in areas such as legislation, accident investigation, and air navigation services.114 A bill 
on passenger protection was submitted to Parliame nt but was returned to the CAA, and as of end-
October 2015 a passenger rights bill to implement IC AO core principles on consumer protection in 
both the international and domestic air transport sectors was being drafted. Maldives maintains 
29 air service agreements (ASAs) (Table A4.1), and 15 interim air service agreements (MOUs); 
during the review period it signed an ASA wi th Hong Kong, China (in 2009); Bhutan (in 2011); and 
Mauritius (in 2013) as well as MOUs with Om an (in 2009), Belgium (in 2010), and Turkey (in 
2011).115 Plans for negotiating ASAs with Japan and Spain were under way.  
 
                                               
114 ICAO online information. Viewed at: http://www.icao.int/safety/ pages/usoap- results.aspx . 
115 Online information on the status of bilate ral air services agreements/MOUs. Viewed at: 
http://www.aviainfo.gov.mv/downloads/t ransport/air_services_agreements.pdf . WT/TPR/S/332/Rev.1 • Maldives 
 
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 WT/TPR/S/332/Rev.1 • Maldives 
 
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  5  APPENDIX TABLES 
Table A1.1 Merchandise domestic exports by product group, 2009-14 
(US$ million and %) 
  2009  2010  2011  2012 2013 2014  
Total domestic exports (US$ million) 76.7 74.2 83.3 161.6 166.5 144.8 
 (% of total) 
Total primary products 100.0 99.9 99.9 99.9 100.0 99.8 
 Agriculture 97.7 96.2 96.8 98.2 98.4 97.7 
 Food 97.7 96.2 96.8 98.2 98.4 97.7 
 03 Fish (not marine mammals), crustaceans, 
 molluscs and aquatic invertebrates, and 
 preparations thereof 96.4 95.1 96.2 97.8 97.9 97.4 
 0342 Fish, frozen (excluding fillets and minced fish) 31.6 34.6 26.4 32.0 43.2 34.3 
 0341 Fish, fresh, chilled, whole 11.9 12.4 22.0 24.3 19.5 25.5 
 0345 Fish fillets and fish meat, fresh or chilled; fish 
 meat frozen 27.1 21.7 28.0 25.1 18.9 20.2 
 0371 Fish, prepared, preserved, n.e.s. 9.9 7.8 8.4 8.5 9.9 10.9 
 0351 Fish, dried, salted 15.0 17.6 10.4 6.0 5.0 4.6 
 0344 Fish fillets, frozen 0.4 0.1 0.0 1.4 1.0 1.0 
 0355 Flours, meals, etc. of fish, for human 
 consumption 0.0 0.0 0.0 0.0 0.1 0.3 
 0814 Flours etc. of meat, fish, etc., unfit for human 
 consumption 1.2 1.1 0.6 0.4 0.4 0.3 
 0363 Molluscs, and aquatic invertebrates 0.4 0.8 0.9 0.4 0.4 0.2 
 0353 Fish, smoked 0.0 0.1 0.0 0.0 0.0 0.2 
 Mining 2.3 3.8 3.1 1.7 1.6 2.1 
 Ores and other minerals 2.3 3.8 3.1 1.7 1.5 2.0 
 2822 Waste and scrap of alloy steel 1.6 2.7 1.6 1.2 1.0 1.1 
 2882 Other non-ferrous base metal waste and 
 scrap, n.e.s. 0.6 1.1 1.5 0.5 0.5 0.9 
 Non-ferrous metals 0.0 0.0 0.0 0.0 0.0 0.0 
 Fuels 0.1 0.0 0.0 0.0 0.0 0.0 
Manufactures 0.0 0.1 0.1 0.1 0.0 0.2 
Source: UNSD, Comtrade database (SITC Rev.3). WT/TPR/S/332/Rev.1 • Maldives 
 
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  Table A1.2 Merchandise imports by product group, 2009-14 
(US$ million and %) 
  2009 2010 2011 2012 2013 2014 
Total imports (US$ million) 966.1 1,095.1 1,411.7 1,554.5 1,733.3 1,992.7 
 (% of total) 
Total primary products 47.2 49.8 49.5 56.6 55.1 53.7 
 Agriculture 24.3 24.6 22.6 23.2 24.3 22.9 
 Food 22.2 22.4 21.0 21.2 22.5 21.0 
 0545 Other fresh or chilled vegetables 1.7 1.8 1.5 1.5 1.6 1.4 
 1110 Non-alcoholic beverage, n.e.s. 0.7 0.6 1.0 1.1 1.1 1.2 
 0222 Milk concentrated or sweetened 1.2 1.2 1.3 1.1 1.2 1.1 
 0123 Poultry, meat and offal 0.7 0.8 0.9 0.9 1.4 1.1 
 0579 Fruit, fresh, dried, n.e.s. 1.1 1.2 1.0 1.1 1.1 1.1 
 0423 Rice, milled, semi-milled 1.4 1.2 1.1 1.0 1.0 0.9 
 1222 Cigarettes containing tobacco 0.9 0.9 0.9 0.8 0.8 0.8 
 Agricultural raw material 2.1 2.2 1.6 2.0 1.8 1.8 
 2484 Wood of non-coniferous, sawn 
 of a thickness > 6 mm 1.2 1.3 0.9 1.1 1.1 0.9 
 Mining 22.9 25.3 26.9 33.4 30.8 30.9 
 Ores and other minerals 2.0 2.0 1.8 1.8 1.6 2.0 
 Non-ferrous metals 0.3 0.2 0.2 0.2 0.2 0.2 
 Fuels 20.7 23.1 24.9 31.3 29.1 28.7 
 334 Petroleum oils and oils obtained 
 from bituminous minerals (other than  crude) 17.9 19.8 21.8 28.1 25.7 25.1 
 3442 Gaseous hydrocarbons, 
 liquefied, n.e.s. 2.0 2.2 2.3 2.5 2.6 2.8 
Manufactures 52.8 50.2 50.5 43.3 44.9 46.3 
 Iron and steel 2.1 2.1 2.1 2.2 1.4 1.7 
 Chemicals 6.0 6.0 5.5 5.7 5.2 6.0 
 5429 Medicaments, n.e.s. 0.8 0.7 0.6 0.7 0.6 0.7 
 Other semi-manufactures 9.0 8.8 8.9 8.3 7.7 7.7 
 6612 Portland cement and similar 
 hydraulic cements 1.3 1.2 0.9 1.0 0.9 0.9 
 6353 Builders joinery/carpentry wood 0.6 0.7 0.8 0.5 0.6 0.8 
 Machinery and transport equipment 23.9 22.6 23.6 17.1 20.2 21.4 
 Power generating machines 1.1 0.9 1.0 0.7 0.9 1.1 
 Other non-electrical machinery 5.9 5.6 5.1 4.5 4.5 5.5 
 7415 Air conditioning machines, and 
 parts 0.8 0.8 0.7 0.6 0.6 0.8 
 Agricultural machinery and tractors 0.0 0.0 0.0 0.0 0.0 0.1 
 Office machines & telecommunication 
equipment 6.6 6.5 5.8 4.4 5.4 4.7 
 7643 Radio or television transmission 
 apparatus 1.5 1.6 1.0 0.8 1.0 0.9 
 Other electrical machines 3.5 3.6 4.1 2.9 2.8 3.2 
 7731 Insulated wire, cable etc.; 
 optical fibre cables 0.9 0.8 1.3 0.7 0.6 0.9 
 Automotive products 1.0 0.6 1.3 0.7 0.7 1.0 
 Other transport equipment 5.8 5.5 6.3 3.9 6.0 6.0 
 7924 Aeroplanes, etc. (excl. 
 helicopters), > 15,000 kg unladen 0.3 0.3 0.2 0.6 2.3 1.5 
 7929 Parts, n.e.s., (excl. tyres, 
 engines, electrical parts) of 792 1.0 0.9 1.1 1.0 0.9 1.1 
 7931 Yachts and other 
 pleasure/sports/vessels 0.5 0.1 0.4 0.1 0.2 0.8 
 Textiles 1.6 1.5 1.3 1.3 1.4 1.3 
 Clothing 1.3 1.3 1.1 1.3 1.4 1.2 
 Other consumer goods 8.9 7.9 8.0 7.3 7.6 6.9 
 8215 Furniture, n.e.s., of wood 1.0 0.9 0.9 0.8 0.9 0.9 
Other 0.0 0.0 0.0 0.1 0.0 0.0 
Source: UNSD, Comtrade database (SITC Rev.3). WT/TPR/S/332/Rev.1 • Maldives 
 
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  Table A1.3 Merchandise domestic exports by destination, 2009-14 
(US$ million and %) 
  2009 2010 2011 2012 2013 2014 
Domestic exports (US$ million) 76.7 74.2 83.3 161.6 166.5 144.8 
 (% of total) 
 America 0.8 0.7 0.8 3.8 4.8 9.4 
 United States 0.8 0.7 0.8 3.1 4.4 9.0 
 Other America 0.0 0.0 0.0 0.7 0.5 0.3 
 Canada 0.0 0.0 0.0 0.2 0.1 0.3 
 Europe 43.0 35.5 49.5 45.4 37.9 39.5 
 EU-28 42.5 34.4 49.0 44.7 36.6 37.0 
 France 11.2 10.9 17.7 16.5 13.5 14.5 
 Germany 3.5 2.8 2.5 3.4 6.0 6.7 
 Ireland 0.0 0.0 4.1 4.4 3.6 5.8 
 United Kingdom 10.0 9.5 8.2 7.4 5.5 4.7 
 Italy 12.8 9.3 10.5 7.7 5.0 3.5 
 Spain 2.1 0.8 2.6 2.3 1.3 1.1 
 The Netherlands 2.3 0.5 2.8 2.5 1.6 0.7 
 EFTA 0.5 1.1 0.4 0.7 1.3 2.5 
 Switzerland 0.5 1.1 0.4 0.7 1.3 2.5 
 Other Europe 0.0 0.0 0.0 0.0 0.0 0.0 
 Commonwealth of Independent States 
 (CIS) 0.0 0.0 0.0 0.0 0.1 0.4 
 Russian Federation 0.0 0.0 0.0 0.0 0.1 0.4 
 Africa 2.5 0.5 0.2 0.0 0.0 0.0 
 Middle East 5.9 3.1 2.2 3.4 6.9 1.1 
 United Arab Emirates 0.0 0.1 0.2 0.3 0.4 0.5 
 Iran, Islamic Rep. of 5.9 3.0 2.0 3.1 6.5 0.5 
 Iraq 0.0 0.0 0.0 0.0 0.0 0.1 
 Asia 47.9 60.2 47.3 47.4 50.3 49.6 
 China 0.0 0.4 0.0 2.4 0.1 0.1 
 Japan 4.0 1.7 3.1 2.1 3.1 5.3 
 Six East Asian Traders 24.6 35.1 30.1 33.4 39.5 35.9 
 Thailand 20.7 29.9 20.3 27.4 37.0 32.2 
 Hong Kong, China 1.1 1.4 0.8 1.5 1.0 1.5 
 Chinese Taipei 2.5 3.2 7.3 1.6 1.2 1.5 
 Korea, Rep. of 0.0 0.0 0.6 2.6 0.1 0.5 
 Other Asia 19.4 23.0 14.2 9.5 7.6 8.4 
 Sri Lanka 17.1 19.6 11.7 7.2 5.7 6.0 
 India 2.3 3.4 2.1 1.8 1.5 2.0 
 Australia 0.0 0.0 0.0 0.5 0.4 0.3 
Source: UNSD, Comtrade database. WT/TPR/S/332/Rev.1 • Maldives 
 
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  Table A1.4 Merchandise imports by origin, 2009-14 
(US$ million and %) 
  2009 2010 2011 2012 2013 2014 
Total imports (US$ million) 966.1 1,095.1 1,411.7 1,554.5 1,733.3 1,992.7 
 (% of total) 
 America 9.6 9.5 5.3 6.2 4.5 4.0 
 United States 2.5 2.6 2.1 2.9 1.7 1.7 
 Other America 7.0 6.9 3.2 3.2 2.7 2.3 
 Canada 1.6 0.7 1.3 0.5 0.4 1.4 
 Brazil 0.3 0.6 0.7 0.7 1.1 0.8 
 Europe 10.6 9.8 10.1 8.0 11.1 9.7 
 EU-28 9.4 8.3 8.6 7.0 10.3 8.8 
 Germany 2.0 1.8 1.8 1.8 1.7 1.7 
 Italy 1.1 1.3 1.6 1.0 1.4 1.5 
 United Kingdom 1.1 0.9 1.1 1.1 0.9 1.4 
 Ireland 0.0 0.1 0.0 0.1 1.2 0.9 
 The Netherlands 0.9 0.8 0.7 0.6 0.6 0.9 
 France 1.6 1.0 0.8 1.0 2.0 0.9 
 EFTA 0.9 0.7 0.9 0.5 0.4 0.4 
 Other Europe 0.3 0.7 0.5 0.5 0.4 0.5 
 Commonwealth of 
 Independent States (CIS) 0.0 0.0 0.0 0.0 0.0 0.0 
 Africa 0.6 1.4 0.6 0.5 0.5 0.5 
 Middle East 16.1 19.7 23.7 30.4 30.8 28.5 
 United Arab Emirates 15.7 18.8 21.8 29.9 28.4 23.7 
 Bahrain 0.0 0.6 1.2 0.0 1.9 4.0 
 Oman 0.1 0.2 0.3 0.3 0.5 0.6 
 Asia 63.2 59.6 60.4 55.0 53.1 57.3 
 China 2.7 2.9 5.2 4.4 4.7 5.3 
 Japan 1.3 0.9 2.3 0.7 0.8 0.8 
 Six East Asian Traders 34.5 32.1 32.4 29.6 27.7 30.7 
 Singapore 21.4 17.9 21.6 18.1 16.2 17.5 
 Malaysia 6.6 7.1 5.4 5.5 4.9 7.3 
 Thailand 5.0 5.3 4.2 4.8 5.0 4.4 
 Hong Kong, China 0.8 1.1 0.8 0.7 1.3 1.1 
 Other Asia 24.7 23.7 20.4 20.2 19.8 20.5 
 India 12.1 11.5 10.1 9.5 8.9 8.6 
 Sri Lanka 6.5 5.8 5.6 5.9 5.9 6.5 
 Australia 2.8 2.8 2.2 2.0 1.9 1.8 
 Indonesia 2.0 1.9 1.4 1.6 1.5 1.7 
 New Zealand 0.7 1.1 0.5 0.5 0.7 1.0 
Source: UNSD, Comtrade database. 
 WT/TPR/S/332/Rev.1 • Maldives 
 
- 81 - 
 
  Table A3.1 Maldives' MFN applied tariff summary, 2015a 
  Number 
of lines Average 
(%) Range 
(%) Coefficien
t of 
variation 
(%) Duty free 
(%) 
Total 8,661 13.9 0-766.7 1.8 31.5 
HS 01-24 1,543 9.8 0-766.7 3.4 75.3 
HS 25-97 7,118 14.8 0-400 1.5 22.0 
By WTO category      
WTO agricultural products 1,233 11.3 0-766.7 3.3 74.1 
   Animals and products thereof 149 12.9 0-50 1.4 63.1 
   Dairy products 41 0.0 0-0 0.0 100.0 
   Fruit, vegetables, and plants 365 3.9 0-25 2.3 83.6 
   Coffee and tea 33 6.1 0-50 2.7 87.9 
   Cereals and preparations 198 3.9 0-50 3.3 91.4 
   Oils seeds, fats, oil and their products 98 6.6 0-50 2.2 77.6 
   Sugars and confectionary 33 1.8 0-50 4.7 90.9 
   Beverages, spirits and tobacco 138 52.1 0-766.7 1.9 47.8 
   Cotton 8 15.0 15-15 0.0 0.0 
   Other agricultural products, n.e.s. 170 9.4 0-25 1.1 54.1 
WTO non-agricultural products  7,428 14.3 0-400 1.5 24.4 
   Fish and fishery products 381 5.9 0-50 1.6 68.5 
   Minerals and metals 1,469 7.1 0-50 1.0 28.0 
   Chemicals and photographic supplies 1,348 15.4 0-400 2.1 19.4 
   Wood, pulp, paper and furniture 478 5.2 0-50 1.4 45.6 
   Textiles 793 15.8 0-400 1.3 3.0 
   Clothing 279 0.0 0-0 0.0 100.0 
   Leather, rubber, footwear and travel goods 216 21.2 0-50 0.6 13.4 
   Non-electric machinery 913 21.2 0-60 0.5 5.6 
   Electric machinery 521 19.9 0-50 0.7 12.7 
   Transport equipment 243 46.7 0-200 1.0 5.8 
   Non-agricultural products,  n.e.s. 766 16.0 0-150 1.2 23.9 
   Petroleum 21 2.4 0-10 1.8 76.2 
By ISIC sector      
   ISIC 1 - Agricultur e, hunting and fishing 533 8.2 0-200 2.2 68.7 
   ISIC 2 - Mining 123 1.3 0-25 4.2 94.3 
   ISIC 3 - Manufacturing 8,004 14.5 0-766.7 1.7 28.0 
        Manufacturing excluding food processing 6,960 15.0 0-400 1.5 20.7 
    Electrical energy 1 0.0 0 0.0 100.0 
By stage of processing      
   First stage of processing 986 7.6 0-200 1.9 65.9 
   Semi-processed products 2,182 12.1 0-400 1.5 18.3 
   Fully processed products 5,493 15.7 0-766.7 1.8 30.5 
By HS Section      
  01  Live animals and products 526 7.7 0-50 1.6 67.1 
  02  Vegetable products 482 3.0 0-25 2.7 87.3 
  03  Fats and oils 65 5.4 0-50 2.9 89.2 
  04  Prepared food, beverages and tobacco 470 20.0 0-766.7 2.9 70.2 
  05  Mineral products 197 0.4 0-15 5.3 96.4 
  06  Chemicals and products thereof 1,203 11.4 0-100 0.8 24.4 
  07  Plastics, rubber, and articles thereof 362 30.5 0-400 2.0 6.1 
  08  Raw hides and skins, leather, and its 
products 73 20.0 20-20 0.0 0.0 
  09  Wood and articles of wood 156 10.9 0-25 0.8 26.3 
  10  Pulp of wood, paper and paperboard 197 2.7 0-25 2.9 89.3 
  11  Textiles and textile articles 1,041 11.7 0-400 1.6 28.0 
  12  Footwear, headgear, etc. 58 10.5 0-25 1.1 51.7 
  13  Articles of st one, plaster, cement 296 5.1 0-50 1.7 57.8 
  14  Precious stones and metals, pearls 68 24.6 0-25 0.1 1.5 
  15  Base metals and articles thereof 939 8.0 0-50 0.6 4.6 
  16  Machinery, electrical equipment, etc. 1,474 20.2 0-50 0.6 9.7 
  17  Transport equipment 259 45.6 0-200 1.0 5.4 
  18  Precision equipment 347 12.9 0-25 0.6 17.3 WT/TPR/S/332/Rev.1 • Maldives 
 
- 82 - 
 
    Number 
of lines Average 
(%) Range 
(%) Coefficien
t of 
variation 
(%) Duty free 
(%) 
  19  Arms and ammunition 57 35.0 35-35 0.0 0.0 
  20  Miscellaneous manufactured articles 384 12.5 0-200 1.9 23.2 
  21  Works of art, etc. 7 25.0 25-25 0.0 0.0 
a As of end-October. 
Note: Including AVEs, as available, based on 2014 import data provided by the authorities. 
Source: WTO Secretariat calculations, based on data provided by the authorities.  WT/TPR/S/332/Rev.1 • Maldives 
 
- 83 - 
 
  Table A3.2 Maldives' MFN and SAFTA tariff summaries, 2015  
    MFN applied SAFTA 
  Number 
of lines Average 
(%) Range 
(%) CV Duty 
free 
(%) Average 
(%) Range 
(%) CV Duty 
free 
(%) 
Total 8,661 13.9 0-766.7  1.8 31.5 5.3 0-766.7 3.5 43.0  
HS 01-24 1,543 9.8 0-766.7  3.4 75.3 4.7 0-766.7 5.6 75.3 
HS 25-97 7,118 14.8 0-400  1.5 22.0 5.4 0-400 3.0 36.0  
By WTO category          
WTO agricultural products 1,233 11.3 0-766.7  3.3 74.1 5.0 0-766.7 5.9 76.6  
   Animals and products 
thereof 149 12.9 0-50 1.4 63.1 4.8 0-50 2.0 63.1 
   Dairy products 41 0.0 0-0  0.0 100.0  0.0 0-0 0.0 100.0  
   Fruit, vegetables, and 
plants 365 3.9 0-25 2.3 83.6 1.6 0-25 2.7 83.6 
   Coffee and tea 33 6.1 0-50  2.7 87.9 6.1 0-50 2.7 87.9  
   Cereals and 
preparations 198 3.9 0-50 3.3 91.4 2.1 0-50 4.1 91.4 
   Oils seeds, fats, oil and 
their products 98 6.6 0-50  2.2 77.6 2.0 0-14 2.0 77.6  
   Sugars and 
confectionary 33 1.8 0-50 4.7 90.9 1.7 0-50 5.1 90.9 
   Beverages, spirits and 
tobacco 138 52.1 0-766.7  1.9 47.8 26.3 0-766.7 3.2 47.8  
   Cotton 8 15.0 15-15  0.0 0.0 0.0 0-0 0.0 100.0  
   Other agricultural 
products, n.e.s. 170 9.4 0-25  1.1 54.1 2.3 0-8 1.5 67.1  
WTO non-agricultural 
products  7,428 14.3 0-400  1.5 24.4 5.4 0-400 3.0 37.5 
   Fish and fishery 
products 381 5.9 0-50  1.6 68.5 3.4 0-50 1.9 68.5  
   Minerals and metals 1,469 7.1 0-50 1.0 28.0 3.5 0-25 1.1 40.0 
   Chemicals and 
photographic supplies 1,348 15.4 0-400  2.1 19.4 6.8 0-400 4.8 22.9  
   Wood, pulp, paper and 
furniture 478 5.2 0-50 1.4 45.6 2.2 0-11 1.2 45.8 
   Textiles 793 15.8 0-400  1.3 3.0 0.3 0-11 4.3 94.2  
   Clothing 279 0.0 0-0 0.0 100.0  0.0 0-0 0.0 100.0  
   Leather, rubber, 
footwear and travel goods 216 21.2 0-50
 0.6 13.4 7.1 0-11 0.4 13.4  
   Non-electric machinery 913 21.2 0-60 0.5 5.6 6.9 0-50 0.8 5.6 
   Electric machinery 521 19.9 0-50  0.7 12.7 7.3 0-50 0.6 12.7  
   Transport equipment 243 46.7 0-200  1.0 5.8 28.4 0-100 1.1 5.8 
   Non-agricultural 
products, n.e.s. 766 16.0 0-150  1.2 23.9 5.6 0-34 0.9 26.0  
   Petroleum 21 2.4 0-10 1.8 76.2 0.0 0-0 0.0 100.0  
By ISIC sector          
   ISIC 1 - Agriculture, 
hunting and fishing 533 8.2 0-200  2.2 68.7 2.9 0-34 2.0 70.9 
   ISIC 2 - Mining 123 1.3 0-25  4.2 94.3 0.4 0-7.2 4.2 94.3  
   ISIC 3 - Manufacturing 8,004 14.5 0-766.7  1.7 28.0 5.5 0-766.7 3.5 40.4 
        Manufacturing 
excluding food 
processing 6,960 15.0 0-400  1.5 20.7 5.5 0-400 3.0 34.8  
By stage of processing          
   First stage of processing 986 7.6 0-200  1.9 65.9 2.6 0-34 2.0 72.2  
   Semi-processed 
products 2,182 12.1 0-400  1.5 18.3 3.4 0-400 5.1 45.4 
   Fully processed 
products 5,493 15.7 0-766.7  1.8 30.5 6.5 0-766.7 3.1 36.8  
By HS Section          
  01  Live animals and 
products 526 7.7 0-50  1.6 67.1 3.3 0-50 1.8 67.1  
  02  Vegetable products 482 3.0 0-25 2.7 87.3 1.1 0-25 3.0 87.3 
  03  Fats and oils 65 5.4 0-50  2.9 89.2 1.5 0-14 2.9 89.2  
  04  Prepared food, 
beverages and tobacco 470 20.0 0-766.7  2.9 70.2 10.4 0-766.7 4.5 70.2 
  05  Mineral products 197 0.4 0-15  5.3 96.4 0.0 0-4.3 9.9 99.0  
  06  Chemicals and 
products thereof 1,203 11.4 0-100  0.8 24.4 2.7 0-10 0.8 28.8 
  07  Plastics, rubber, and 
articles thereof 362 30.5 0-400  2.0 6.1 19.6 0-400 3.1 6.1  
  08  Raw hides and skins, 
leather, and its products 73 20.0 20-20  0.0 0.0 8.0 8-8 0.0 0.0 
  09  Wood and articles of 
wood 156 10.9 0-25  0.8 26.3 4.1 0-10 0.7 26.9  WT/TPR/S/332/Rev.1 • Maldives 
 
- 84 - 
 
      MFN applied SAFTA 
  Number 
of lines Average 
(%) Range 
(%) CV Duty 
free 
(%) Average 
(%) Range 
(%) CV Duty 
free 
(%) 
  10  Pulp of wood, paper 
and paperboard 197 2.7 0-25 2.9 89.3 0.8 0-7.2 2.9 89.3 
  11  Textiles and textile 
articles 1,041 11.7 0-400  1.6 28.0 0.0 0-0 0.0 100.0  
  12  Footwear, headgear, 
etc. 58 10.5 0-25 1.1 51.7 3.0 0-7.2 1.1 51.7 
  13  Articles of stone, 
plaster, cement 296 5.1 0-50  1.7 57.8 2.5 0-10 1.2 57.8  
  14  Precious stones and 
metals, pearls 68 24.6 0-25 0.1 1.5 11.3 0-25 0.7 1.5 
  15  Base metals and 
articles thereof 939 8.0 0-50  0.6 4.6 4.2 0-10 0.7 23.3  
  16  Machinery, electrical 
equipment, etc. 1,474 20.2 0-50 0.6 9.7 6.9 0-50 0.8 10.8 
  17  Transport equipment 259 45.6 0-200  1.0 5.4 27.1 0-100 1.2 5.4  
  18  Precision equipment 347 12.9 0-25 0.6 17.3 5.4 0-20 0.6 17.3 
  19  Arms and 
ammunition 57 35.0 35-35  0.0 0.0 8.6 8.1-11 0.1 0.0  
  20  Miscellaneous 
manufactured articles 384 12.5 0-200  1.9 23.2 4.8 0-34 1.3 23.2 
  21  Works of art, etc. 7 25.0 25-25  0.0 0.0 7.2 7.2-7.2 0.0 0.0  
CV Coefficient of variation. 
Note: Including AVEs, as available. Source: WTO Secretariat calculations, based on Maldives Customs Service online information and data 
provided by the authorities. WT/TPR/S/332/Rev.1 • Maldives 
 
- 85 - 
 
  Table A3.3 List of tariff lines wher e applied MFN rates exceed bindings, 2015   
HS codes Description MFN applied 
rate (%) Bound rate 
(%) 
0106901000 Live dangerous animals 35 30 
0209100000 Pig fat 50 30 
1501100000 Lard 50 30 
1501200000 Pig fat 50 30 
1503000000 Lard stearin, lard oil 50 30 
1516101000 Fats and oils of swine 50 30 
1517101000 Margarine containing swine 50 30 
1517901000 Shortening containing swine 50 30 
1518001000 Animal or vegetable fats and oils 50 30 
1601001010 Pork sausages 50 30 
1601001099 Other products of pork 50 30 
1602201000 Preparations of swine liver 50 30 
1704901000 Sugar confectionary containing wine 50 30 
1806201000 Chocolate containing spirit 50 30 
1806311000 Chocolate containing spirit 50 30 
1806321010 Chocolate containing spirit 50 30 
1806901000 Chocolate and food preparations containing spirit 50 30 
1901201010 Mixes and doughs containing liquor 50 30 
1901901000 Food preparation of flour containing spirit 50 30 
1902201000 Stuffed pasta containing wine 50 30 
1902301000 Other pasta containing wine 50 30 
1902401000 Couscous containing swine 50 30 
1904901010 Biriyani, pre-cooked, containing swine 50 30 
1904901099 Other prepared food containing swine or wine 50 30 
1905901000 Pudding containing spirit 50 30 
2009111000 Orange juice 50 30 
2009121000 Orange juice 50 30 
2009191000 Orange juice containing spirit 50 30 
2009211000 Grapefruit juice 50 30 
2009291000 Other grapefruit juice containing spirit 50 30 
2009311000 Juice of single fruit 50 30 
2009391000 Juices of single citrus fruit 50 30 
2009411000 Pineapple juice containing spirit 50 30 
2009491000 Pineapple juice containing spirit 50 30 
2009501000 Tomato juice containing spirit 50 30 
2009611000 Grape juice 50 30 
2009691000 Other unfrozen grape juice containing spirit 50 30 
2009711000 Apple juice 50 30 
2009791000 Apple juice containing spirit 50 30 
2009811000 Cranberry juice containing spirit 50 30 
2009891000 Juices of single fruit or vegetable, containing spirit 50 30 
2009901000 Mixed fruit juice containing spirit 50 30 
2103909099 Sauces, seasoning, etc. containing spirit 50 30 
2104101000 Soups containing ham 50 30 
2104201000 Homogenized composite food preparations 50 30 
2202109000 Soft drinks containing spirit 50 30 
2202909000 Other beverages containing spirit 50 30 
2206000010 Sake 50 30 
2206000011 Other fermented be verages, n.e.s. 50 30 
2209009000 Vinegar containing spirit 50 30 
2402200014 Cigarettes - American Legend 766.7a 300 
2402200099 Cigarettes - not specified elsewhere 412.2a 300 
2903711000 Freon (chlorodifluoromethane)  100 30 
2903720010 Freon (dichlorotrifluoroethane) 100 30 WT/TPR/S/332/Rev.1 • Maldives 
 
- 86 - 
 
  HS codes Description MFN applied 
rate (%) Bound rate 
(%) 
2903730010 Freon (1,1-dichloro-1-fluoroethane) 100 30 
2903740010 Freon (chlorodifluoroethane) 100 30 
3601000000 Propellant powders 35 30 
3602000000 Other prepared explosives 35 30 
3603000011 Blasting accessories (explosives) 35 30 
3604100000 Fireworks 35 30 
3604900010 Parachute rocket 35 30 
3604900011 Other pyrotechnic articles 35 30 
3606909010 Fire starter 35 30 
3606909011 Chafing fuel (ethanol, methanol and other alcohol 
based) 35 30 
3606909099 Articles of combustible materials, n.e.s. 35 30 
3920101010 Sheets, plates and foils of polythene 400 30 
3920101011 Sheets, plates and foils of polythene 400 30 
3920101012 Cling film, packaging film of polythene 400 30 
3920101013 Cling film of polythene 400 30 
3923211010 Sacks and bags of polymers of ethylene 400 30 
3923211011 Pelican tank/bag 400 30 
3923211012 Polythene tube roll for packaging 400 30 
3923211013 Polythene tube roll for packaging 400 30 
3923291000 Bags of plastics 400 300 
4011100000 New pneumatic tyres of rubber 50 30 
4011200010 New pneumatic tyres of rubber 50 30 
4011200011 New pneumatic tyres of rubber 50 30 
4011400000 New pneumatic tyres of rubber 50 30 
4011610000 New pneumatic tyres of rubber 50 30 
4011620000 New pneumatic tyres of rubber 50 30 
4011630000 New pneumatic tyres of rubber 50 30 
4011930000 New pneumatic tyres of rubber 50 30 
4011940000 New pneumatic tyres of rubber 50 30 
4011991010 New pneumatic tyres of rubber 50 30 
4011991011 New pneumatic tyres of rubber 50 30 
4012110000 Retreaded/used tyres of rubber 50 30 
4012120000 Retreaded/used tyres of rubber 50 30 
4012190000 Retreaded/used tyres of rubber 50 30 
4012201010 Retreaded/used tyres of rubber 50 30 
4012201011 Retreated/used tyres of rubber 50 30 
4012201012 Retreated/used tyres of rubber 50 30 
4012201013 Retreated/used tyres of rubber 50 30 
4012201014 Retreated/used tyres of rubber 50 30 
4012201015 Retreated/used tyres of rubber 50 30 
4012900000 Retreated/used tyres of rubber 50 30 
4013100010 Inner tubes of rubber 50 30 
4013100011 Inner tubes of rubber 50 30 
4013100012 Inner tubes of rubber 50 30 
4013901010 Inner tubes of rubber 50 30 
4013901011 Inner tubes of rubber 50 30 
4013901012 Inner tubes of rubber 50 30 
4013901099 Inner tubes of rubber 50 30 
6304919000 Seat covers for vehicles 50 30 
6304929000 Other furnishing articles (..) of cotton 50 30 
6304939000 Chair cloth 50 30 
6304999000 Other furnishing articles (..) of other textile materials 50 30 
6305331010 Bags of polyethylene for packing goods 400 30 
6305331011 Sacks of polyethylene for packing goods 400 30 WT/TPR/S/332/Rev.1 • Maldives 
 
- 87 - 
 
  HS codes Description MFN applied 
rate (%) Bound rate 
(%) 
7007119010 Glass (safety) used for cars 50 30 
7007119011 Glass (safety) used for other passenger vehicles 50 30 
7007219010 Laminated safety glass for auto cycles, motor cycles 
and passenger vehicles 50 30 
7007219011 Laminated safety glass for vehicles other than 
passenger vehicles 50 30 
7009100010 Rear view mirrors (for motor cycles) 50 30 
7009100011 Rear view mirrors (for passenger vehicles ) 50 30 
7009100012 Rear view mirrors (for other vehicles) 50 30 
8301201010 Locks (for vehicles ) 50 30 
8301201011 Locks (for motor cycles) 50 30 
8301201099 Locks (for vehicles other than passenger vehicles and 
motor cycles) 50 30 
8301609010 Motor vehicle lock parts 50 30 
8301709010 Keys for motor vehicles 50 30 
8407311010 Engines for motor vehicles/cycles 50 30 
8407311011 Engines for motor vehicles/cycles 50 30 
8407321010 Engines for motor vehicles/cycles 50 30 
8407321011 Engines for motor vehicles/cycles 50 30 
8407321012 Engines for motor vehicles/cycles 50 30 
8407331010 Engines for motor vehicles/cycles 50 30 
8407331011 Engines for motor vehicles/cycles 50 30 
8407341010 Engines for motor vehicles/cycles 50 30 
8407341011 Engines for motor vehicles/cycles 50 30 
8407341012 Engines for motor vehicles/cycles 50 30 
8407901010 Engines for motor vehicles/cycles 50 30 
8407901011 Engines for motor vehicles/cycles 50 30 
8408201010 Engines for motor vehicles/cycles 50 30 
8408201011 Engines for motor vehicles/cycles 50 30 
8409911010 Engine parts for motor vehicles/cycles 50 30 
8409911011 Engine parts for motor vehicles/cycles 50 30 
8409911012 Engine parts for motor vehicles/cycles 50 30 
8409991010 Engine parts for motor vehicles/cycles 50 30 
8409991011 Engine parts for motor vehicles/cycles 50 30 
8409991012 Engine parts for motor vehicles/cycles 50 30 
8413301010 Fuel pump for passenger vehicles 50 30 
8413301011 Fuel pump other than for passenger vehicles 50 30 
8413811100 Water pump for internal combustion engines of 
vehicles 50 30 
8413911000 Parts of pumps for liquids (for vehicles) 50 30 
8414801000 Air compressor (for vehicles) 50 30 
8414901000 Pump parts for vehicles 50 30 
8421231110 Oil/fuel filter for passenger vehicles 50 30 
8421231199 Oil/fuel filter other than for passenger vehicles 50 30 
8421311110 Air filter for pa ssenger vehicles 50 30 
8421311199 Air filter for other vehicles 50 30 
8426190000 Transporter cranes 50 30 
8426301000 Portable cranes, self-propelled 50 30 
8426410000 Self-propelled machinery on tyres 50 30 
8427100010 Forklift, stacking trucks 50 30 
8427100011 Forklift, stacking trucks 50 30 
8427200010 Forklift, stacking trucks 50 30 
8427200011 Forklift, stacking trucks 50 30 
8427901000 Forklift, stacking trucks 50 30 
8429110000 Bulldozers and angle dozers 50 30 
8429190000 Bulldozers and angle dozers 50 30 WT/TPR/S/332/Rev.1 • Maldives 
 
- 88 - 
 
  HS codes Description MFN applied 
rate (%) Bound rate 
(%) 
8429200000 Self-propelled grad ers and levellers 50 30 
8429300000 Self-propelled scrapers 50 30 
8429400010 Road roller 50 30 
8429400011 Tamping machine 50 30 
8429510000 Self-propelled shovel loader 50 30 
8429520000 Self-propelled bulldozer 50 30 
8429590010 Excavator, n.e.s. 50 30 
8430200000 Other moving machinery 50 30 
8430310000 Other moving machinery 50 30 
8430410000 Other moving machinery 50 30 
8430500000 Other moving machinery 50 30 
8482101010 Ball or roller bearings for vehicles 50 30 
8482101011 Ball or roller bearings for vehicles 50 30 
8482201010 Ball or roller bearings for vehicles 50 30 
8482201011 Ball or roller bearings for vehicles 50 30 
8482301010 Ball or roller bearings for vehicles 50 30 
8482301011 Ball or roller bearings for vehicles 50 30 
8482401010 Ball or roller bearings for vehicles 50 30 
8482401011 Ball or roller bearings for vehicles 50 30 
8482501010 Ball or roller bearings for vehicles 50 30 
8482501011 Ball or roller bearings for vehicles 50 30 
8482801010 Ball or roller bearings for vehicles 50 30 
8482801011 Ball or roller bearings for vehicles 50 30 
8482911010 Ball or roller bearings for vehicles 50 30 
8482911011 Ball or roller bearings for vehicles 50 30 
8482991010 Ball or roller bearings for vehicles 50 30 
8482991011 Ball or roller bearings for vehicles 50 30 
8483301010 Transmission shafts, gear boxes, etc. for vehicles 50 30 
8483301011 Transmission shafts, gear boxes, etc. for vehicles 50 30 
8483401000 Transmission shafts, gear boxes, etc. for vehicles 50 30 
8483501000 Transmission shafts, gear boxes, etc. for vehicles 50 30 
8483601000 Transmission shafts, gear boxes, etc. for vehicles 50 30 
8483901000 Transmission shafts, gear boxes, etc. for vehicles 50 30 
8484101010 Metal gasket for vehicles 50 30 
8484101011 Metal gasket for vehicles 50 30 
8484101012 Gasket in sets (metal or different materials) for 
vehicles 50 30 
8501101000 Motors and parts thereof for vehicles 50 30 
8501201000 Motors and parts thereof for vehicles 50 30 
8501311100 Motors and parts thereof for vehicles 50 30 
8501321100 Motors and parts thereof for vehicles 50 30 
8501331100 Motors and parts thereof for vehicles 50 30 
8501341100 Motors and parts thereof for vehicles 50 30 
8501401000 Motors and parts thereof for vehicles 50 30 
8501511000 Motors and parts thereof for vehicles 50 30 
8501521000 Motors and parts thereof for vehicles 50 30 
8501531000 Motors and parts thereof for vehicles 50 30 
8501611010 Alternator AC (output not exceeding 75 kVA) for 
vehicles 50 30 
8501631010 Alternator AC (output 375 kVA to 750 kVA) for vehicles 50 30 
8501641010 Alternator AC (output exceeding 750 kVA) for vehicles 50 30 
8503001000 Motors and parts thereof for vehicles 50 30 
8504401000 Static converters  for vehicles 50 30 
8505201000 Other electrical apparatus for vehicles 50 30 
8507101000 Accumulators used in vehicles 50 30 
8507201000 Accumulators used in vehicles 50 30 WT/TPR/S/332/Rev.1 • Maldives 
 
- 89 - 
 
  HS codes Description MFN applied 
rate (%) Bound rate 
(%) 
8507301000 Accumulators used in vehicles 50 30 
8507401000 Accumulators used in vehicles 50 30 
8507501000 Accumulators used in vehicles 50 30 
8507601000 Accumulators used in vehicles 50 30 
8507801000 Accumulators used in vehicles 50 30 
8507901000 Accumulators used in vehicles 50 30 
8511101000 Electrical ignition or starti ng equipment, for vehicles 50 30 
8511201000 Electrical ignition or starting equipment 50 30 
8511301000 Electrical ignition or starti ng equipment, for vehicles 50 30 
8511409000 Electrical ignition or starting equipment, for vehicles 50 30 
8511901000 Starter motor parts for vehicles 50 30 
8512201010 Lights for vehicles 50 30 
8512201011 Lights for vehicles 50 30 
8512301010 Sound signalling equipment for vehicles 50 30 
8512301011 Sound signalling equipment for vehicles 50 30 
8512301012 Sound signalling equipment for vehicles 50 30 
8512301013 Sound signalling equipment for vehicles 50 30 
8512401010 Windscreen wipers for vehicles 50 30 
8512401011 Windscreen wipers for vehicles 50 30 
8512901010 Lightning or visual/sound signalling for vehicles, parts 50 30 
8512901011 Lightning or visual/sound si gnalling for vehicles, parts 50 30 
8527210000 Radio receivers for vehicles 50 30 
8527290000 Radio receivers for vehicles 50 30 
8529101010 Antenna for vehicles 50 30 
8529101011 Antenna for vehicles 50 30 
8532291000 Fixed electrical capacitors (for vehicles), n.e.s. 50 30 
8533101000 Electrical resistors for vehicles 50 30 
8533211000 Electrical resistors for vehicles 50 30 
8533291000 Electrical resistors for vehicles 50 30 
8533311000 Electrical resistors for vehicles 50 30 
8533391000 Electrical resistors for vehicles 50 30 
8533401010 Electrical resistors for vehicles 50 30 
8533401011 Electrical resistors for vehicles 50 30 
8533401012 Electrical resistors for vehicles 50 30 
8536101000 Other electrical apparatus for vehicles 50 30 
8536419000 Other electrical apparatus for vehicles 50 30 
8536499000 Other electrical apparatus for vehicles 50 30 
8536501000 Other electrical apparatus for vehicles 50 30 
8536691010 Other electrical apparatus for vehicles 50 30 
8536691011 Other electrical apparatus for vehicles 50 30 
8536901000 Other electrical apparatus for vehicles 50 30 
8539291110 Other electrical apparatus for vehicles 50 30 
8539291111 Other electrical apparatus for vehicles 50 30 
8539901000 Other electrical apparatus for vehicles 50 30 
8544301010 Ignition wiring for vehicles 50 30 
8544301011 Ignition wiring for vehicles 50 30 
8545201000 Carbon brushes for vehicles 50 30 
9301100010 Arms and weapons 35 30 
9301100011 Arms and weapons 35 30 
9301200000 Arms and weapons 35 30 
9301900010 Arms and weapons 35 30 
9301900011 Arms and weapons 35 30 
9301900012 Arms and weapons 35 30 
9301900013 Arms and weapons 35 30 
9301900014 Arms and weapons 35 30 WT/TPR/S/332/Rev.1 • Maldives 
 
- 90 - 
 
  HS codes Description MFN applied 
rate (%) Bound rate 
(%) 
9301900015 Arms and weapons 35 30 
9301900016 Arms and weapons 35 30 
9301900017 Arms and weapons 35 30 
9301900099 Arms and weapons 35 30 
9302000010 Arms and weapons 35 30 
9302000011 Arms and weapons 35 30 
9302000012 Arms and weapons 35 30 
9302000013 Arms and weapons 35 30 
9303100000 Arms and weapons 35 30 
9303200010 Arms and weapons 35 30 
9303200011 Arms and weapons 35 30 
9303200012 Arms and weapons 35 30 
9303200013 Arms and weapons 35 30 
9303200014 Arms and weapons 35 30 
9303300010 Arms and weapons 35 30 
9303300011 Arms and weapons 35 30 
9303900010 Arms and weapons 35 30 
9303900011 Arms and weapons 35 30 
9304000010 Arms and weapons 35 30 
9305100010 Arms and weapons 35 30 
9305100011 Arms and weapons 35 30 
9305100012 Arms and weapons 35 30 
9305100013 Arms and weapons 35 30 
9305100014 Arms and weapons 35 30 
9305100015 Arms and weapons 35 30 
9305100016 Arms and weapons 35 30 
9305100017 Arms and weapons 35 30 
9305200010 Arms and weapons 35 30 
9305200011 Arms and weapons 35 30 
9305200012 Arms and weapons 35 30 
9305200013 Arms and weapons 35 30 
9305200014 Arms and weapons 35 30 
9305200015 Arms and weapons 35 30 
9305200016 Arms and weapons 35 30 
9305200017 Arms and weapons 35 30 
9305910010 Arms and weapons 35 30 
9305910011 Arms and weapons 35 30 
9305910012 Arms and weapons 35 30 
9305910013 Arms and weapons 35 30 
9305910014 Arms and weapons 35 30 
9305910015 Arms and weapons 35 30 
9305910016 Arms and weapons 35 30 
9305910017 Arms and weapons 35 30 
9305990000 Arms and weapons 35 30 
9306210000 Arms and weapons 35 30 
9306290000 Arms and weapons 35 30 
9306300000 Arms and weapons 35 30 
9306900000 Arms and weapons 35 30 
9307000000 Arms and weapons 35 30 
9401200000 Seats used for motor vehicles 50 30 
9401901000 Seat parts for motor vehicles 50 30 
9614000010 Smoking pipes, cigare ttes/cigar holders 200 30 
9614000011 Smoking pipes, cigarettes/cigar holders 200 30 
9614000012 Smoking pipes, cigare ttes/cigar holders 200 30 
9614000013 Smoking pipes, cigarettes/cigar holders 200 30 WT/TPR/S/332/Rev.1 • Maldives 
 
- 91 - 
 
  HS codes Description MFN applied 
rate (%) Bound rate 
(%) 
9614000099 Smoking pipes, cigare ttes/cigar holders 200 30 
a Figure corresponds to an AVE. 
Source: WTO Secretariat calculations, based on Maldives Customs Service online information. WT/TPR/S/332/Rev.1 • Maldives 
 
- 92 - 
 
  Table A3.4 Public enterprises of the Republic of Maldives   
Name  Proportion of shareholding  
Field of industry  GoM Private sector  
Addu Investments Pvt. Ltd. 30% 70% Shangri-La  Tourism  
Air Maldives Ltd.ab 51% 49% Naluri Bhd Aviation 
Bank of Maldives Plc 50.8% 29.49% public, 4.25% STO, 
4.07% MTCC, 7.33% Govt. Emp. PF, 4.07% Rayyithunge Account Banking 
Dhivehi Raajjeyge Gulhun Plc 41.8% 52.0% Batelco, public 
5.90%, Dhiraagu Colleagu 
share plan 0.30% Telecommunication 
Housing Develo pment Finance 
Corporation Plc 49% ADB 18% , IFC 18%, HDFC 
India 15% Financial institution (for 
housing projects)  
Housing Development Corporation Ltd. 100%  Residential housing  
Island Aviation Services Ltd. 100%  Aviation 
Madivaru Holdings Private Limitedab  25% 9% IAS, 7% MACL, 1.6% 
STO, 57.4% several 
individual investors Airports 
Maldives Airports Company Ltd. 100%  Airports 
Maldives Industrial Fisheries Company 
Ltd. 100%  Fisheries 
Maldives National Shipping Ltd.a 100%  Shipping 
Maldives Ports Limited 100%  Cargo handling 
Maldives Post Ltd. 100%  Courier service  
Maldives Tourism Development 
Corporation Plc 47% 53% public Tourism  
Maldives Transport and Contracting 
Company Plc 47.8% 7.5% MNSL, 44.7% public Public transport 
Male Water and Sewerage Company 
Pvt. Ltd. 80% Hitachi 20% Water and sewerage  
State Electric Company Ltd. 100%  Provision of electricity 
State Trading Organization Plc 81.63% 18.37% public General trading 
Vilingili Investments Pvt. Ltd.b 30% 70% Energy Tours   
Maldives National Broadcasting 
Corporation Limiteda 100%  Broadcasting 
Central Utilities Limiteda 100%  Provision of utilities 
Maldives Entertainment Company 
Limiteda 100%  Entertainment 
North Central Utilities Limiteda 100%  Provision of utilities 
Northern Utilities Limiteda 100%  Provision of utilities 
South Central Utilities Limiteda 100%  Provision of utilities 
Southern Utilities Limiteda 100%  Provision of utilities 
Thilafushi Corporation Limited 100%  Industrial Island 
Upper North Utilities Limiteda 100%  Provision of utilities 
Upper South Utilities Limiteda 100%  Provision of utilities 
Waste Management Corporation 
Limiteda 100%  Waste management 
Hulhumale Integrated Economic Zone 
Ltd. 100%   
Gulhifalhu Investment Ltd. 100%  Housing development / 
industrial 
Works Corporation Limiteda 100%  Contract business 
Hithadhoo Port Limiteda 100%  Cargo handling 
Gan Airport Company Limiteda 100%  Airports 
Kulhudhuffushi Port Limiteda 100%  Cargo handling 
Hanimaadhoo Airport Company 
Limitedc  100%   
Felivaru Port Limitedc 100%   
Maldives Industrial Agriculture 
Company Limitedc 100%   
Maldives Marketing and Public 
Relations Corporation Ltd.  100%  Marketing and PR 
Maldives Islamic Bank Private Limited 15% 85% ICD Banking WT/TPR/S/332/Rev.1 • Maldives 
 
- 93 - 
 
  Name  Proportion of shareholding  
Field of industry  GoM Private sector  
Male Health Services Corporation 
Limiteda 100%  Provision of health 
services 
Kooddoo Fisheries Maldives Limiteda 100%  Fisheries 
Felivaru Fisheries Maldives Limiteda 100%  Fisheries 
Southern Health Se rvices Corporation 
Limiteda 100%  Provision of health 
services 
Maldives Road Development 
Corporation Limited 100%  Construction 
Central Health Service Corporationa 100%  Provision of health 
services 
Northern Health Se rvice Corporationa 100%  Provision of health 
services 
North Central Health Service 
Corporationa 100%  Provision of health 
services 
South Central Health Service 
Corporationa 100%  Provision of health 
services 
Upper North Health Service Corporation
a 100%  Provision of health 
services 
Upper South Health Service 
Corporationa 100%  Provision of health 
services 
Kaddoo Airport Company Limiteda 100%  Airports 
Dutch Docklands Maldives Pvt. Ltd. 5% 95% Dutch Docklands 
International BV  
Kuda Villingili Developments Pvt. Ltd. 5% 95% Yacht Tours Maldives 
Pvt. Ltd.  
Vermillion Private Limited 5% 95% Vermillion International 
Pvt. Ltd. Manage and operate a 
resort (transport service 
provider) 
Dheebaja Maldives Private Limited 5% 95% Dheebaja Investments 
Pvt. Ltd. Manage and operate a 
resort (transport service provider) 
Ifuru Investments Private Limited 5% 95% Agro Marine  
Cocoon Investments Pvt. Ltd. 5% 95% BIR Investments Manage and operate a 
resort (transport service provider) 
Addu International Airport Pvt. Ltd. 40% 10% MACL, 10% STO, 
10%GACL, 30% KASA  
Kulhudhuffushi Development Corporation 51% 49% Island Kulhudhuffushi 
Council  
Thinadhoo Development Corporation 51% 49% Island Thinadhoo 
Council  
Fuahmulak Development Corporation 51% 49% Island Fuahmulak 
Council  
Trinus-CAE Southern Hotels and 
Resorts 5% 95% Trinus CAE-Holdings Manage and operate a 
resort (transport service 
provider) 
Trinus-CAE Northern Hotels and 
Resorts 5% 95% Trinus CAE-Holdings Manage and operate a 
resort (transport service provider) 
Aasandha Pvt. Ltd. 40% 60% Allied Insurance 
Company Ltd. Health insurance 
Kaadedhoo Airport Company Ltd.c 100%   
Fenaka Corporation Limited 100%  Provision of utilities 
SIFCO 10% 90% Sifainge Welfare 
Corporative  
Trifidus Investment Pvt. Ltd. 10% 90% Olhahali Investment 
Pvt. Ltd. Conversion of K.Olhahali 
to tourist resort 
Aqua Sun Investment Pvt. Ltd. 10% 90% Aqua Sun Holidays Pvt. 
Ltd. Conversion of AA. Ethere 
Madivaru to tourist resort 
Malahini Holdings Pvt. Ltd. 10% 90% TRI Investment 
Services Pvt. Ltd. Conversion of K. Kuda 
Bandos to tourist resort 
Handhuvaru Ocean Resorts Pvt. Ltd. 10% 90% Handhuvaru Ocean 
Holidays Pvt. Ltd. Conversion of V. 
Ambaara to tourist resort 
Male International Airport Pvt. Ltd. 100%  Operation of Male 
International Airport 
Maldives Hajj Corporation Limited 100%   WT/TPR/S/332/Rev.1 • Maldives 
 
- 94 - 
 
  Name  Proportion of shareholding  
Field of industry  GoM Private sector  
Koddipparu Investment Pvt. Ltd. 10% 90% Top Deck Investment 
Pvt. Ltd. Development of K. 
Koddipparu as a tourist 
resort 
Akirifushi Investment Pvt. Ltd. 10% 90% Akirifushi Development 
Company Pvt. Ltd. Development of K. 
Akirifushi as a tourist resort 
Zen Resorts Pvt. Ltd. 10% 90% Ridgewood Hotels and 
Suites Pvt. Ltd. Development of N. 
Kuredhivaru as a  tourist 
resort 
Maldives Overseas Investment Pvt. Ltd. 10% 90% Investment Company 
Pvt. Ltd. Development of F. 
Himithi as a tourist resort 
Kandholhudhoo Island Investment Pvt. 
Ltd. 10% 90% Universal Enterprise 
Pvt. Ltd. Conversion of AA. 
Kandholhudhoo as tourist 
resort 
Nackachaa Huraa Holdings Pvt. Lt d. 10% 90% Universal Enterprise 
Pvt. Ltd. Conversion of K. 
Nackachaa Huraa to a tourist resort 
POLWEK 10% 90% Police Corporative 
Society For tourism related work 
Maldives Green Fund 100%  Environment & renewable 
energy 
Big Stone Investment Pvt. Ltd. 10% 90% Ellaidhoo Investment 
Private Limited Conversion of Aa. 
Maagau as a tourist 
resort 
Dhonkeyo Holdings Private Limited 10% 90% Dhonkeyo Holdings 
Private Limited  
Prime Capital Maldives 25% 75% Prime Capital Maldives  
Fushifaru Investment Pvt. Ltd. 10% 90% Muni Enterprises Pvt. 
Ltd.  
Thiladhoo Investment Pvt. Ltd. 10% 90% MVK Maldives  
Angiri Joint Venture Private Limited  10% 90% Angiri Resorts 
Management and Operations Pvt. Ltd.  
Veli Madivaru Pvt. Ltd. 10% 90% Crown Company Pvt. 
Ltd.  
MRT Holdings Pvt. Ltd. 10% 90% Kandooma Holdings Pvt. 
Ltd.  
Theluveliga Retreat Pvt. Ltd. 10% 90% My Travels Maldives 
Pvt. Ltd.  
Navaagan Pvt. Ltd. 10% 90% Vabbinfaru Island 
Paradise Pvt.  
Dhigufaru Investments Pvt. Ltd. 10% 90% Static Company Pvt. 
Ltd.  
Bodumohoraa Investment Pvt. Lt d. 10% 90% Marine Technology 
Maldives Pvt. Ltd.  
Lagoon Resorts Pvt. Ltd. 10% 90% Jhotels & Resorts Pvt. 
Ltd.  
a Identified for liquidation. 
b Winding-up process. c Have not commenced operations. 
Note: GoM = Government of Maldives Source: Information provided by the Maldivian authorities. WT/TPR/S/332/Rev.1 • Maldives 
 
- 95 - 
 
  Table A4.1 Maldives' air transport agreements1, as of end-October 2015  
Partner Date Entry into 
force 
5th2 
7th3 
Cabotage4 
Coop5 
Designation6 
Withholding7 
Pricing8 
Capacity9 
Stat10 
ALI11 
Austria 04.02.1997  Y N N Y M SOEC DA PD Y 13 
Bahrain 18.01.1995  Y N N N M SOEC DA PD Y 10 
Bangladesh 03.02.1985  Y N N N S SOEC DA PD Y 6 
Belgium 10.08.2010  Y N N Y M SOEC DA PD Y 13 
Bhutan 08.05.2011  Y N N N M PPoB DA PD Y 18 
Brunei 
Darussalam 03.05.1986  Y N N N S SOEC DA B1 Y 10 
Bulgaria 13.08.1996  Y N N Y M SOEC DA PD Y 13 
China 02.03.1994  N N N N S SOEC DA PD Y 0 
Czech 
Republic 25.11.2004  Y N N Y M SOEC DA PD Y 13 
Egypt 06.01.2003  N N N Y M SOEC DA PD Y 7 
France 05.02.2001  Y N N N M SOEC CoO PD Y 13 
Germany 10.11.1993  N N N N M SOEC CoO PD Y 7 
Hong Kong, 
China 11.06.2009  N N N N S SOEC  DA  PD Y 0 
India 24.12.2008  Y N N N S SOEC DA PD Y 6 
Iran 24.07.2001  Y N N Y M SOEC DA PD Y 13 
Italy 13.07.2000  Y N N N M SOEC DA n/a y 10 
Korea, Rep. 
of 27.06.1990  Y N N N S SOEC DA O/PD Y 8 
Kuwait 18.06.2001  Y N N N M SOEC DA PD Y 10 
Malaysia 16.09.1994  Y N N Y M SOEC DA B1 Y 17 
Macao, China 16.01.2006 23.04.2006 N N N N M PPoB DA PD Y 12 
Mauritius 25.02.2013  Y N N Y M SOEC DA PD Y 13 
Myanmar 12.07.2001  N N N N M PPoB CoO PD Y 15 
Nepal 27.09.1984  Y N N N M SOEC DA PD N 11 
Netherlands 23.06.1994  N N N N S SOEC DA PD N 1 
Oman 14.05.2009  N N N Y M SOEC FP PD Y 15 
Pakistan 04.11.1981  Y N N N S SOEC DA PD Y 6 
Poland 09.08.2007  Y N N Y M SOEC DA PD Y 13 
Qatar 20.06.1999  Y N N N M SOEC DA PD Y 10 
Russian 
Federation 27.06.1995  Y N N N M SOEC DA n/a y 0 
Seychelles 22.08.2001  Y N N Y M SOEC DA PD Y 13 
Singapore 12.08.1983  N N N N M SOEC DA FD N 13 
South Africa 24.05.2012  Y N N Y M SOEC DA PD Y 13 
Sri Lanka 18.02.1982  Y N N Y M SOEC DA PD Y 13 
Switzerland 25.10.1993  Y N N N S SOEC  DD O/FD  Y 18 WT/TPR/S/332/Rev.1 • Maldives 
 
- 96 - 
 
  Partner Date Entry into 
force 
5th2 
7th3 
Cabotage4 
Coop5 
Designation6 
Withholding7 
Pricing8 
Capacity9 
Stat10 
ALI11 
Thailand 21.12.1989  Y N N N S SOEC DA PD Y 6 
Turkey 22.09.2011  Y N N Y M SOEC DA B1 Y 17 
Turkmenistan 12.07.1999  Y N N N M SOEC DA PD Y 10 
Ukraine 28.06.1994  Y N N N M SOEC FP PD Y 18 
United Arab 
Emirates 23.01.2002  Y N N Y M SOEC DA FD N 22 
United 
Kingdom 20.01.1996  N N N N M SOEC DD B1 Y 14 
United States  05.05.2005  Y N N Y M SOEC DD FD N 28 
Uzbekistan 06.11.1996  N N N N M SOEC DD PD Y 10 
Yemen 20.08.2002  Y N N Y M SOEC DA PD Y  13 
1 The term "air transport agreements" refers to  air services agreements (ASAs), memoranda of 
understanding, exchange of notes, and other relevant instruments. 
2 If fifth freedom rights are subject to approval by the aeronautical authorities, they are coded as not 
(N) granted. 
3 If seventh freedom rights are subj ect to approval by the aeronautical authorities, they are coded as 
not (N) granted. 
4 If cabotage rights are subject to approval by the aeronautical authorities, they are coded as not (N) 
granted. 
5 Cooperative arrangements (Coop) clauses allowing cooperation between airlines e.g. code-sharing. 
6 Designation can be single (S) or multiple (M). 
7 The type of withholding clause can be: substantia l ownership and effective control (SOEC), principal 
place of business (PPoB), community of interest (COI), or not available (n/a). 
8 The type of pricing clause can be: double approval  (DA), double disapproval (DD), country of origin 
(CoO), zone pricing (ZP), free pric ing (FP), or not available (n/a). 
9 The type of capacity clause ban be: pre dete rmination (PD), Bermuda I (B1), free determination 
(FD), other (O), or not available (n/a).  
10 An exchange of statistics is forese en (Y) or not (N) by the agreement. 
11 ALI stands for Air Liberalizati on Index, a synthetic measure of the openness of a given ASA. 
Source: Maldives Civil Aviation Authority, and online WTO information. Viewed at: 
https://www.wto.org/as ap/resource/data/htm l/methodology_e.htm . 
 
__________