US embassy cable - 04COLOMBO1304

UNCLAS COLOMBO 001304 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EINV, EFIN, ELAB, KTDB, PGOV, MV, Maldives, ECONOMICS 
SUBJECT:  REPUBLIC OF MALDIVES -- JULY 2004 APPENDIX TO 
2003 INVESTMENT CLIMATE STATEMENT 
 
REF: (A) STATE 141379  (B) 03 COLOMBO 001540 
 
This appendix serves as an update to the 2003 Investment 
Climate Statement for the Republic of Maldives.  It has 
been provided to assist investors in the interim period 
resulting from the U.S. Government's decision to begin 
publishing the Country Commercial Guide (of which the 
Investment Climate Statement is a chapter) on a calendar 
year basis, in January instead of August. 
 
The United States Government has reviewed the 2003 
Investment Climate Statement for the Republic of Maldives, 
and has noted the following changes that have occurred 
since its publication.  In most circumstances, if a 
portion of the 2003 Investment Climate Statement has not 
been modified in this appendix, it is because the U.S. 
Government is satisfied that it continues to accurately 
reflect the state of affairs in the Republic of Maldives 
as of July 2004. 
 
Openness to Foreign Investment:  No significant changes 
since 2003. 
 
Conversion and Transfer Policies:  No significant changes 
since 2003. 
 
Expropriation and Compensation:  No significant changes 
since 2003. 
 
Dispute Settlement:  No significant changes since 2003. 
 
Performance Requirements and Incentives:  No significant 
changes since 2003. 
 
Right to Private Ownership and Establishment:  No 
significant changes since 2003. 
 
Protection of Property Rights:  No significant changes 
since 2003. 
 
Transparency of the Regulatory System:  No significant 
changes since 2003. 
 
Efficient Capital Markets and Portfolio Investment:  No 
significant changes since 2003. 
 
Political Violence:  The Maldives has a strong record of 
political stability resulting from the homogenous nature 
of a society of one culture, one religion and one 
language.  In a rare display of public opposition, 
September 2003 rioting elicited a swift response from the 
government, which has begun a process of constitution 
reforms to address the calls for change.  Further violence 
seems unlikely.  The current President has been in office 
since 1979. 
 
Corruption:  No significant changes since 2003. 
 
Bilateral Investment Agreements:  No significant changes 
since 2003. 
 
OPIC And Other Investment Insurance Programs:  No 
significant changes since 2003. 
 
Labor:  No significant changes since 2003. 
 
Foreign Trade Zones/Free Ports:  No significant changes 
since 2003. 
 
Foreign Direct Investment Statistics:  Statistics will be 
updated in the next full revision of the Investment 
Climate Statement, which will be published in January 
2005. 
 
LUNSTEAD