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Home Business & Finance Economic Policies

IMF upgrades world, India, China growth on lower Trump tariffs, Russia down todayheadline

July 29, 2025
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ECONOMYNEXT – In a symbolic and diplomatically significant visit, Sri Lankan President Anura Kumara Dissanayake reinforced Colombo’s commitment to strengthening regional cooperation during his trip to the Maldives, underscoring a vision of partnership built on shared history, geography, and purpose.

His visit comes at a time when Sri Lanka is recovering from an economic crisis while economic experts expect a similar situation in the Maldives “very soon”.

The visit, which coincides with the 60th anniversary of diplomatic ties between Sri Lanka and the Maldives, served as both a celebration of longstanding friendship and a platform to recalibrate bilateral engagement in line with 21st-century challenges and opportunities.

In his remarks, President Dissanayake recalled Sri Lanka’s early support for Maldivian independence and cultural contributions such as the composition of the Maldivian national anthem’s melody by Sri Lankan maestro Pandit W D Amaradeva.

Beyond historical reflection, the visit took on strategic overtones as President Dissanayake spoke of collaborative efforts in maritime security, blue economy development, and engagement in multilateral forums — areas of growing importance given geopolitical shifts in the Indian Ocean region.

“I firmly believe our partnership is a reflection of regional cooperation among neighbouring states,” President Dissanayake said after meeting Maldives President Mohamed Muizzu.

“Whether it is strengthening maritime security, promoting blue economy initiatives, or collaborating in multilateral forums, Sri Lanka is committed to working with the Maldives to create a peaceful, prosperous and sustainable Indian Ocean region.”

Maritime Security

Maritime security has become a cornerstone of strategic policy for both Sri Lanka and the Maldives, as the Indian Ocean grows in importance for global trade and military interests, with India concerned about its security amid visits of Chinese research vessels.

With major shipping lanes passing through the region including the vital east-west route for energy shipments, threats such as piracy, illicit trafficking, illegal fishing, and external power projection have heightened the need for cooperative maritime governance.

Sri Lanka, with its geostrategic location near key chokepoints, and the Maldives, comprising over 1,000 coral islands spread across critical sea lanes, are especially vulnerable to maritime disruptions.

Both nations have recognized that securing their territorial waters and exclusive economic zones (EEZs) is vital not just for national sovereignty, but for regional stability.

Joint naval exercises, intelligence sharing, and regional frameworks such as the Indian Ocean Rim Association (IORA) and the Colombo Security Conclave are becoming more relevant as these island states look to fortify maritime peace and protect their blue frontiers.

The concept of the blue economy, which is the sustainable use of ocean resources for economic growth, improved livelihoods, and ecosystem health, is increasingly central to the development agendas of Sri Lanka and the Maldives.

Both countries are heavily dependent on the ocean: Sri Lanka through its ports, fisheries, and coastal tourism; and the Maldives through its marine-based tourism and fisheries industries.

However, climate change, overfishing, and unregulated development threaten marine ecosystems and long-term economic sustainability.

Recognizing these risks, both governments have begun exploring policies that integrate ocean conservation with economic productivity, including marine spatial planning, ocean energy, sustainable fisheries, and investment in ocean-based technologies.

Long ‘to Do’ List  

Cooperation between Sri Lanka and the Maldives on blue economy initiatives, particularly through data sharing, research, and joint conservation programs, could strengthen regional resilience against climate and economic shocks.

As small island states facing similar developmental and security challenges in the Indian Ocean, Sri Lanka and the Maldives have increased their participation in multilateral platforms to amplify their voices on the global stage.

From the United Nations to region-specific bodies like the Indian Ocean Commission, and the IORA, both nations advocate for equitable development, climate justice, and maritime governance.

More recently, the Colombo Security Conclave — which includes India, Sri Lanka, the Maldives, and Mauritius — has emerged as a regional mechanism for dialogue and cooperation on counterterrorism, cyber security, and maritime threats.

By deepening their engagement in such forums, Sri Lanka and the Maldives aim to assert agency in shaping the Indian Ocean’s strategic future, balancing external powers while pursuing shared regional interests.

President Muizzu during the visit emphasized that the historical ties between the two island nations have evolved significantly, moving beyond traditional exchanges of goods like dried fish to encompass modern sectors such as tourism, digital technology, security cooperation and cultural exchange.

“This diversification, he noted, reflects “not only the dynamism of our bilateral ties but also our shared ambition to meet the demands of a rapidly changing world,” he was quoted in a statement shared by Sri Lanka’s President Media Division (PMD).

The Maldivian President highlighted the long-standing cooperation in vital areas like education, health and human resource development, which have formed a robust foundation for the current economic expansion.

He expressed confidence that recent high-level discussions between the two governments would “unlock untapped potential and expand opportunities for our people.”

Dissanayake also emphasized on tourism and said the sector was “a key component of both economies.

“The Maldives ranks among the top ten countries whose citizens choose Sri Lanka as a tourist destination,” he said.

“We are pleased to see an increase in arrivals of Maldivian tourists in recent years. We invite Maldivian tourists to visit Sri Lanka to experience a second home.”

The president acknowledged the contribution of thousands of Sri Lankans working in the Maldives and praised the role they play in the island nation’s socio-economic development.

He also noted the deep people-to-people ties, with Maldivians frequently travelling to Sri Lanka for education, healthcare, and leisure, which go beyond diplomacy and resonate with ordinary citizens of both countries.

President Dissanayake’s visit marks a shift in Sri Lanka’s foreign policy posture — one that places greater emphasis on neighborhood diplomacy and regional solidarity.

At a time when the Indian Ocean’s strategic importance is growing, the message is clear: Sri Lanka sees its future not just in the global spotlight, but anchored in deeper, more meaningful regional cooperation. (Colombo/July 29/2025)


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