U.S. Department of State
Background Notes: Maldives, June 1996
Released by the Bureau of Public Affairs

Official Name: Republic of Maldives

PROFILE

Geography

Area: 298 sq. km. (115 sq. mi.), over 1,200 islands; twice the size of 
Washington, DC.
Cities: Capital--Male (pop. 62,000).
Terrain: Flat islands.
Climate: Hot and humid.

People

Nationality: Noun and adjective--Maldivian(s).
Population: 245,000.
Population growth rate: 3.3%.
Ethnic groups: South Indians, Sinhalese, Arabs.
Religion: Sunni Islam.
Languages: Dhivehi (official); many government officials speak 
English.
Education: Years compulsory--none. Attendance--primary 90%; 
secondary 35%. Literacy--93%.
Health: Infant mortality rate--55/1000. Life expectancy--62 yrs.
Work force: Fishing--20%. Manufacturing--15%. Tourism--11%. 
Agriculture--5%. Other--49%.

Government

Type: Republic.
Independence: July 26, 1965 (formerly a British protectorate).
Constitution: November 11, 1968.
Branches: Executive--president, cabinet. Legislative--unicameral 
Majlis (parliament). Judicial--High Court, eight lower courts, 19 atoll 
courts.
Administrative subdivisions: 19 atolls and capital city.
Political parties: None.
Suffrage: Universal at age 21.

Economy

GDP (1995): $238 million.
GDP growth rate: 6.5%.
Per capita GDP: $940.
Inflation: 16%.
Percentages of GDP (1994): Distribution--19%. Tourism--18%. 
Fishing--12%. Construction--9%. Government--9%. Agriculture--8%. 
Manufacturing--6%. Other--19%.
Trade (1994): Exports--$55 million: fish products, garments. Major 
markets--Sri Lanka, U.K., U.S. Imports--$257 million: mineral 
products, machinery, food including vegetables, textiles. Major 
suppliers--Singapore, Sri Lanka, India, Hong Kong.
Official exchange rate: 11.67 rufiyaas=U.S.$1.

U.S. MALDIVIAN RELATIONS

The United States has friendly relations with the Republic of Maldives. 
The U.S. ambassador and some embassy staff in Sri Lanka are 
accredited to Maldives and make periodic visits. The United States 
supports Maldivian independence and territorial integrity and publicly 
endorsed India's timely intervention on behalf of the Maldivian 
Government during the November 1988 coup attempt. U.S. Naval 
vessels have regularly called at Male in recent years.

U.S. contributions to economic development in Maldives have been 
made principally though international organization programs. Although 
no bilateral aid agreement exists between the two countries, the United 
States has directly funded training in airport management and narcotics 
interdiction and provided desktop computers for Maldivian customs, 
immigration, and drug-control efforts in recent years. The United 
States also trains a small number of Maldivian military personnel 
annually.

Some 25 U.S. citizens are resident in Maldives; about 2,000 Americans 
visit Maldives annually. Maldives welcomes foreign investment, 
although the general lack of codified law acts as somewhat of a damper 
to it. Areas of opportunity for U.S. businesses include tourism, 
construction, and simple export-oriented manufacturing, such as 
garments and electrical appliance assembly. There is a shortage of local 
skilled labor, and most industrial labor has to be imported from Sri 
Lanka or elsewhere.

Principal U.S. Embassy Officials

Ambassador--A. Peter Burleigh (resident in Colombo, Sri Lanka)

The U.S. embassy in Sri Lanka is at 210 Galle Road, Colombo 3; tel: 
94-1-448007; fax: 94-1-437345 or 94-1-446013.

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Historical and Cultural Highlights

Maldives comprises some 1,200 islands in the Indian Ocean. The 
earliest settlers were probably from southern India, and they were 
followed by Indo-European speakers from Sri Lanka in the fourth and 
fifth centuries BC. In the 12th century AD, sailors from East Africa and 
Arab countries came to the islands. Today, the Maldivian ethnic 
identity is a blend of these cultures, reinforced by religion and 
language.

Originally Buddhists, Maldivians were converted to Sunni Islam in the 
mid-12th century. Islam is the official religion of nearly the entire 
population. Strict adherence to Islamic precepts and close community 
relationships have helped keep crime under control.

The official and common language is Dhivehi, an Indo-European 
language related to Sinhala, the language of Sri Lanka. The writing 
system, like Arabic, is from right to left, although alphabets are 
different. English is used widely in commerce and increasingly as the 
medium of instruction in government schools.

Some social stratification exits on the islands. It is not rigid, since 
rank 
is based on varied factors, including occupation, wealth, Islamic 
virtue, 
and family ties. Members of the social elite are concentrated in Male.

The early history of the Maldives is obscure. According to Maldivian 
legend, a Sinhalese prince named Koimale was stranded with his bride-
-daughter of the king of Sri Lanka--in a Maldivian lagoon and stayed 
on to rule as the first sultan.

Over the centuries, the islands have been visited and their development 
influenced by sailors from countries on the Arabian Sea and the Indian 
Ocean littorals. Mopla pirates from the Malabar Coast--present-day 
Kerala state in India--harassed the islands. In the 16th century, the 
Portuguese subjugated and ruled the islands for 15 years (1558-73) 
before being driven away by the warrior-patriot Muhammad 
Thakurufar Al-Azam.

Although governed as an independent Islamic sultanate for most of its 
history from 1153 to 1968, Maldives was a British protectorate from 
1887 until July 25, 1965. In 1953, there was a brief, abortive attempt 
at 
a republican form of government, after which the sultanate was 
reimposed.

Following independence from Britain in 1965, the sultanate continued 
to operate for another three years. On November 11, 1968, it was 
abolished and replaced by a republic, and the country assumed its 
present name.
========================================

ECONOMY

The Maldivian economy is predominantly based on tourism and 
fishing. Of Maldives' 1,200 islands, only 198 are inhabited. The 
population is scattered throughout the country, and the greatest 
concentration is on the capital island, Male. Limitations on potable 
water and arable land constrain expansion.

Development has been centered upon the tourism industry and its 
complementary service sectors, transport, distribution, real estate, 
construction, and government. Taxes on the tourist industry have been 
plowed into infrastructure and also used to improve technology in the 
agricultural sector.

GDP in 1995 totaled some $238 million, or about $940 per capita. 
Inflation accelerated to 20% in 1993, but is now declining toward 10%. 
Real GDP growth averaged about 10% in the 1980s. It expanded by an 
exceptional 16.2% in 1990, declined to 4% in 1993, and has since 
bounced back to the 6% to 7% range.

The merchandise trade deficit widened in 1994 to $202 million as 
imports increased by 45% to $257 million and exports increased 4.3% 
to $55 million.

International shipping to and from the Maldives is mainly operated by 
the private sector with only a small fraction of the tonnage carried on 
vessels operated by the national carrier, Maldives Shipping 
Management Ltd.

Over the years, Maldives has received economic assistance from 
multinational development organizations, including the UN 
Development Program and the World Bank. Individual donors--
including Japan, India, Australia, and European and Arab countries--
also have contributed.

A 1956 bilateral agreement gave the United Kingdom the use of Gan--
in Addu Atoll in the far south--for 20 years as an air facility in 
return 
for British aid. The agreement ended in 1976, shortly after the British 
closed the Gan air station.

Economic Sectors

Tourism. In recent years, Maldives has successfully marketed its 
natural assets for tourism--beautiful, unpolluted beaches on small coral 
islands, diving in blue waters abundant with tropical fish, and glorious 
sunsets. Tourism now brings in about $180 million a year and 
contributed 18% of GDP in 1994.

Since the first resort was established in 1972, more than 70 islands 
have been developed, with a total capacity of some 10,000 beds. The 
number of tourists (mainly from Europe) visiting the Maldives 
increased from 1,100 in 1972 to 280,000 in 1994. The hotel occupancy 
rate is 68%, with the average tourist staying eight or nine days and 
spending about $650.

Fishing. This sector employs about 20% of the labor force and 
contributes 12% of GDP. The use of nets is illegal, so all fishing is 
done by line. Production was about 104,000 metric tons in 1994, most 
of which was skipjack tuna. About 80% is exported, largely to 
Thailand, Sri Lanka, and Singapore. About 28% of the catch is dried or 
canned, and another 5% is frozen; 54% of fresh fish is exported. Total 
export proceeds from fish were about $40 million in 1994. The fishing 
fleet consists of some 1,550 small, flat-bottomed boats (dhonis). Since 
the dhonis have shifted from sails to outboard motors, the annual tuna 
catch per fisherman has risen from 1.4 metric tons in 1983 to 4.5 in 
1993.

Agriculture. Poor soil and scarce arable land have historically limited 
agriculture to a few subsistence crops, such as coconut, banana, 
breadfruit, papayas, mangoes, taro, betel, chilies, sweet potatoes, and 
onions. Agriculture provides about 8% of GDP.

Industry. The industrial sector provides only about 6% of GDP. 
Traditional industry consists of boat building and handicrafts, while 
modern industry is limited to a few tuna canneries, five garment 
factories, a bottling plant, and a few enterprises in the capital 
producing 
PVC pipe, soap, furniture, and food products.

Environmental Concerns

There is growing concern about coral reef and marine life damage 
because of coral mining (used for building and jewelry making), sand 
dredging, and solid waste pollution. Mining of sand and coral have 
removed the natural coral reef that protected several important islands, 
making them highly susceptible to the erosive effects of the sea.

In April 1987, high tides swept over the Maldives, inundating much of 
Male and nearby islands. That event prompted high-level Maldivian 
interest in global climatic changes, including the "greenhouse effect."

Investment in Education

The government expenditure for education was 18% of the budget in 
1993, with 2,598 employees--1,900 of them teachers, and 450 
expatriates. In 1993, there were 78,639 students in 265 institutions, 
mainly primary schools.

Both formal and non-formal education have made remarkable strides in 
the last decade. Unique to Maldives, modern and traditional schools 
exist side by side. The traditional schools are staffed by community-
paid teachers without formal training and provide basic numeracy and 
literacy skills in addition to religious instruction.

The modern schools, run by both the government and private sector, 
provide primary and secondary education. As the modern English-
medium school system expands, the traditional system is gradually 
being upgraded. There are only two public high schools in the 
archipelago, one in Male and the other on the southern most island of 
Gan.

GOVERNMENT AND POLITICAL CONDITIONS

A 1968 referendum approved the constitution making Maldives a 
republic with executive, legislative, and judicial branches of 
government. The constitution was amended in 1970, 1972, and 1975 
and is again under revision.

Ibrahim Nastier, Prime Minister under the pre-1968 sultanate, became 
President and held office from 1968 to 1978. He was succeeded by 
Mumoon Abdul Gayoom, who was elected President in 1978 and 
reelected in 1983, 1988, and 1993.

The president heads the executive branch and appoints the cabinet. 
Nominated to a five-year term by a secret ballot of the Majlis 
(parliament), the president must be confirmed by a national 
referendum.

The unicameral Majlis is composed of 48 members serving five-year 
terms. Two members from each atoll and Male are elected directly by 
universal suffrage. Eight are appointed by the president.

The Maldivian legal system--derived mainly from traditional Islamic 
law--is administered by secular officials, a chief justice, and lesser 
judges on each of the 19 atolls, who are appointed by the president and 
function under the Ministry of Justice. There also is an attorney 
general.

Each inhabited island within an atoll has a chief who is responsible for 
law and order. Every atoll chief, appointed by the president, functions 
as a district officer in the British South Asian tradition.

Maldives has no organized political parties. Candidates for elective 
office run as independents on the basis of personal qualifications.

On November 8, 1988, Sri Lankan Tamil mercenaries tried to 
overthrow the Maldivian Government. At President Gayoom's request, 
the Indian military suppressed the coup attempt within 24 hours.

FOREIGN RELATIONS

Maldives follows a nonaligned policy and is committed to maintaining 
friendly relations with all countries. The country has a UN Mission in 
New York and an embassy in Sri Lanka and trade representatives in 
London and Singapore. India, Pakistan, and Sri Lanka maintain 
resident embassies in Male. Denmark, Norway, the U.K., Germany, 
Turkey, and Sweden have consular agencies in Male under the 
supervision of their embassies in Sri Lanka and India. The UNDP has a 
representative resident in Male, as do UNICEF and WHO. Like the 
U.S., many countries have nonresident ambassadors accredited to the 
Maldives, most of them based in Sri Lanka or India.

TRAVEL AND BUSINESS INFORMATION

The U.S. Department of State's Consular Information Program 
provides Travel Warnings and Consular Information Sheets. Travel 
Warnings are issued when the State Department recommends that 
Americans avoid travel to a certain country. Consular Information 
Sheets exist for all countries and include information on immigration 
practices, currency regulations, health conditions, areas of 
instability, 
crime and security, political disturbances, and the addresses of the 
U.S. 
posts in the subject country. They can be obtained by telephone at 
(202) 647-5225 or by fax at (202) 647-3000. To access the Consular 
Affairs Bulletin Board by computer, dial (202) 647-9225, via a modem 
with standard settings. Bureau of Consular Affairs' publications on 
obtaining passports and planning a safe trip abroad are available from 
the Superintendent of Documents, U.S. Government Printing Office, 
Washington, DC 20402, tel. (202) 512-1800. 

Emergency information concerning Americans traveling abroad may 
be obtained from the Office of Overseas Citizens Services at (202) 
647-5225.

Travelers can check the latest health information with the U.S. Centers 
for Disease Control and Prevention in Atlanta, Georgia. A hotline at 
(404) 332-4559 gives the most recent health advisories, immunization 
recommendations or requirements, and advice on food and drinking 
water safety for regions and countries. A booklet entitled Health 
Information for International Travel (HHS publication number CDC-
95-8280, price $14.00) is available from the U.S. Government Printing 
Office, Washington, DC 20402, tel. (202) 512-1800. 

Information on travel conditions, visa requirements, currency and 
customs regulations, legal holidays, and other items of interest to 
travelers also may be obtained before your departure from a country's 
embassy and/or consulates in the U.S. 

Upon their arrival in a country, U.S. citizens are encouraged to 
register 
at the U.S. embassy (see "Principal U.S. Embassy Officials" listing in 
this publication). This may help family members contact you in case of 
an emergency.

Further Electronic Information:

Consular Affairs Bulletin Board (CABB). Available by modem, the 
CABB provides Consular Information Sheets, Travel Warnings, and 
helpful information for travelers. Access at (202) 647-9225 is free of 
charge to anyone with a personal computer, modem, 
telecommunications software, and a telephone line.

Department of State Foreign Affairs Network. Available on the 
Internet, DOSFAN provides timely, global access to official U.S. 
foreign policy information. Updated daily, DOSFAN includes 
Background Notes; Dispatch, the official weekly magazine of U.S. 
foreign policy; daily press briefings; directories of key officers of 
foreign service posts; etc. DOSFAN's World Wide Web site is at 
http://www.state.gov; this site has a link to the DOSFAN Gopher 
Research Collection, which also is accessible at 
gopher://www.state.gov.

U.S. Foreign Affairs on CD-ROM (USFAC). Published on a quarterly 
basis by the U.S. Department of State, USFAC archives information on 
the Department of State Foreign Affairs Network, and includes an 
array of official foreign policy information from 1990 to the present. 
Priced at $80 ($100 foreign), one-year subscriptions include four discs 
(MSDOS and Macintosh compatible) and are available from the 
Superintendent of Documents, U.S. Government Printing Office, P.O. 
Box 37194, Pittsburgh, PA 15250-7954. To order, call (202) 512-1800 
or fax (202) 512-2250.

Federal Bulletin Board (BBS). A broad range of foreign policy 
information also is carried on the BBS, operated by the U.S. 
Government Printing Office (GPO). By modem, dial (202) 512-1387. 
For general BBS information, call (202) 512-1530.

National Trade Data Bank (NTDB). Operated by the U.S. Department 
of Commerce, the NTDB contains a wealth of trade-related 
information, including Country Commercial Guides. It is available on 
the Internet (www.stat-usa.gov) and on CD-ROM. Call the NTDB 
Help-Line at (202) 482-1986 for more information.
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