Economic Relationship among SAARC NationsBy: EconomyWatch   Date: 30 June 2010

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The South Asian Association for Regional Cooperation or

SAARC was created to promote economic integrity and

cooperation among 7 South Asian nations namely India,

Bangladesh, Pakistan, Bhutan, Nepal, Maldives, and Sri Lanka.

The Association was formed in 1985 with the aim to ensure

social and economic development of the member countries.

However, over the years it has been seen that SAARC mainly

worked towards development of economic relationship among

the SAARC nations. Attempts are also on to further trade

relations with the member nations of ASEAN (Association of

South East Asian Nations) and the European Union. 

In spite of lying in the vicinity of one another, trading activities

were restricted among the SAARC nations. Over the years,

there has significant improvement in the trade relations

among the seven SAARC members. The focus has been shifted

to get access to the markets of the other members. Methods

have also been devised to attract foreign direct investments to

strengthen economic infrastructures of the SAARC nations. All

these initiatives point towards an improvement in the

economic relationship among the 7 South Asian countries.

Despite the sincere attempts of the Association, there are

several factors that stand in the way of economic integrity

among the SAARC nations. The clashes between India and the

neighboring countries have prevented the SAARC members to

make the most of the economic benefits derived from the

Association. This has prompted the South Asian countries to go

for bilateral trading activities instead of getting involved in

multilateral trade agreements. However, the Association is

expected to take more proactive steps to improve the

economic relationship among its members. Besides devising

policies for economic integration, SAARC is supposed to

function as a medium to facilitate discussions among the South

Asian nations. Seminars and conferences are going to be

helpful measures for promoting cross border trade and

investment. 

As an aftermath of globalization, Indian government has

resorted to open trade policy. The economic reforms of early

1990s have opened an array of challenges for the Indian

entrepreneurs. The growth rate of the Indian economy was

around 7% during the period from 1994-1997. The inflow of

foreign fund also recorded substantial increase. 

All these resulted from the flexible economic policies adopted

by the Indian government. The economic prosperity of India

prompted the other SAARC members to seek resort to

international trade as a platform for economic growth. Both

Sri Lanka and Nepal have shown their interests to enhance

intra regional trade. Bangladesh is also following the same

trend. With the increased intra regional trading activities, the

economic relationship among the SAARC nations is bound to

be stronger in future. 

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SOUTH ASIA - ARTICLES Print Bookmark Email Facebook#2270, 20 April 2007 

The 14th SAARC Summit: An AssessmentPriyashree Andley, Research Officer and Upasana Mahanta, Research Assistant, IPCS

Report of the Panel discussion held at the IPCS, 13 April 2007 

Speakers:Ambassador I P Khosla, Former Indian High Commissioner to BangladeshDr Amita Batra, Senior Fellow, Indian Council of Research in International Economics

IP Khosla

SAARC is based on an idea about regional cooperation that has many elements such as cultural unity, economic unity, and a single administrative unit, etc. As opposed to the idea of cooperation, there is the counter argument that the region is not culturally united at all. The concept of administrative unity can be argued to be false and does not reflect reality. The concept of single civilizational unity that we took from the Europeans cuts both ways. Another argument says we must change the world, be people oriented. There is a vision of a South Asian Community where smooth flow of people, technology, culture, goods, ideas etc takes place. But there would be no significant change in this direction in the next ten years or so. We have been talking about connectivity since 1985, but nothing has happened except words.

India's Policy

India's policy in this regard is actually not very clear. Our policy makers tell us that the aim of Indian foreign policy is to ensure that our overall economic targets are achieved. The policy seems to suggest if one tempts the neighbours with economic inducements, political gains will follow. Presumably the idea is to offer economic inducements for

political purposes. Possibly it could be a circular thing - economic inducement leading to political gains, which would create an atmosphere of peace leading to further economic gains. In the context of the 14th Summit, with neighbours (like Pakistan) insisting that politics has to come first, one is hoping that they would gradually see the great advantage coming to countries like Sri Lanka and Bangladesh through economic interactions and would put politics in the back-banner.

Is SAARC a success?

Just the fact that there have been summits and leaders are meeting, provides opportunities for cooperation which otherwise do not exist. It gives a chance for leaders and ministers to meet regularly, discuss and exchange views and even talk about bilateral relations. It is a positive element of SAARC. Civil Society has played a big role in SAARC. Regional think tanks are in existence and there are exchanges between artists, filmmakers, writers, singers, which is bound to have some effect in creating an atmosphere of regional cooperation.

The main thing is connectivity, which is Prime Minister Manmohan Singh's theme song since the 13th Summit. One needs to talk about connectivity in South Asia, leading to connectivity in Asia, and then with the world. However, in real life the possibility of achieving connectivity is very dim. Again, since the SAARC Development Fund was never used by anybody one cannot say whether the Food Bank is going to be used or not. However, the idea of a South Asian University is very positive and it will probably go ahead.

Amita Batra

The presentation looks at two broad perspectives: Economic Perspective and a Global Perspective. It looks at the combination of South Asia with West Asia and sees whether they could come together in a larger Free Trade Area. To get a region together there needs to be a common perception of threat and cooperation. The presentation aims to place South Asia in a global context and see what the 14th SAARC summit tried to achieve.

There is a paradigm change towards regional economic integration since 1990s. Traditionally Asian countries pursued trade liberalization through multilateral trading systems for the purpose of growth. This is due to the emergence of powerful blocs like the EU and NAFTA. About 60 percent of the total world trade today is carried out on a preferential basis; so those who are not part of any preferential bloc are going to suffer. There is also the risk of isolation from other groupings.

There is potential for regional economic integration (REI) in South Asia due to geographical, cultural, and historical proximity. There is huge economic potential as far as the region is concerned if trade barriers are removed. Trade complementaries is possible in areas such as textile, cotton, cereals, apparels, cane sugar, plastic and chemical

goods hold intra-industry trade possibilities. There is also the possibility of efficient relocation of industries like the one that happened between India and Sri Lanka in case of tire industry.

If we look at the region and compare it to the other regions of the world in terms of Gross National Income (PPP), GDP growth rate and population, we see intra-region trade in South Asia is extremely low. Exports from South Asia have only doubled over the past two decades. There are lessons to be learnt from other regional organizations like NAFTA and Mercusor.

There are certain misperceptions regarding India's predominant position in South Asia. India has always been a willing partner as far as bilateral or regional agreements are concerned. It is time that one highlights the 'giver' position of India in regional trade.

In case of SAFTA, which has been operational since July 2006, with the objective of maximizing regional potential for trade and development, there is no timetable specification as to when the list of sensitive items will ultimately disappear. The existing institutional arrangement is very much weak. Most of the trade in South Asia is taking place through informal routes, formalization of which is extremely important. Harmonization of standards and procedures in trade as well as services is required. There have also been no concrete measures taken on the question of connectivity. Liberalization of service sector was never a part of SAFTA, although there was a mention of it this time. SAFTA agreement further neglects the trade and investment nexus.

SAARC has the potential to become a grouping of considerable economic benefit. One of the biggest concerns in REI in South Asia is that the smaller economies have a trade deficit vis-à-vis India. There is a possibility that if free trade is allowed this would be taken care of. It goes to the advantage of the small countries if trade barriers are removed. Apart from trade the other benefits of REI could be cross border water management, and a joint stand in WTO.

Statistics show that ASEAN+3+3 are a far more beneficial nexus than SAARC. It is not only beneficial for India but for the rest of the South Asian countries, which may benefit by coming together with India, thus setting the stage for an Asia-wide FTA.

Discussion

Observer Status in SAARC

Powerful countries like China, US and Japan are given observer status in SAARC. One view is that the presence of observers will modify India's voice in the regional organization, to prevent the exercise of monopoly over South Asian dynamics. Japan is getting more involved in South Asia. It has increased its contribution to the South Asia fund and is actively involved in Sri Lanka. Expansion of SAARC with the

entry of Afghanistan in April 2007 has added discomfiture to Pakistan. Observer status to China has added discomfiture to India. With Iran as an observer, it would add discomfiture to the US. These developments question the relevance of the regional organization.

Complexities of SAARC

SAARC has been an ongoing process that has not yielded significant results. The 14th Summit has posed a fundamental dilemma for India. There are five different layers operating simultaneously in South Asia. These include, bilateral relations, regional groupings characterized by BIMSTEC, SAARC member relations, the idea of an extended neighborhood including Central Asia and Southeast Asia and the continental level of cooperation. There is possibility that either all levels mutually reinforce or cross cut each other. Structural weaknesses of SAARC need to be addressed to ensure positive developments. However, the cause for limited success of BIMSTEC is unclear. Earlier, the orthodoxy in SAARC blamed India and Pakistan for failure of regional cooperation under SAARC. Now, Indo-Pak talks are not discussed by other members. The Indo-Pak Composite Dialogue process has been ongoing for four years. However, it has had limited impact on SAARC.

South Asian Identity

The South Asian scale of identity is significant. It is most recognizable outside South Asia. South Asia is seen as a region with one common identity. However, a common identity in South Asia is a complex and debatable issue. South Asian identity is not problematic; it is the idea to approach South Asia that is artificial. People give priority to different kinds of identity. There is a need to accept each other's identity. Moreover, the vision of priority to identities differs in most South Asian countries.

Origin of the term 'South Asia' needs to be discussed. It is a political term placed within the geographic framework. The idea behind the use of the term was to exclude India from the region. The boundaries of South Asia are not clearly demarcated. Questions have been raised on Burma and Tibet being included as part of South Asia. However, definitions are very problematic and reduce coherence.

East Asia Summit

The East Asia summit has been discussed but there is no major substance in it. Countries are more interested in linking their respective economies with China. Lately, China has shown interest in establishing links with South Asia. However, India is uncertain on its policy of economic inducements, political gains or interests in East Asia. India will grow at eight percent and inflation will continue. However, this would not be a structural impairment. India's economic sustainability is questioned by China's growing economy. India does not have a vision for taking South Asia to East Asia.

South Asian University

The idea of setting up a South Asian University has the potential to take off. However, if India pushes the idea of the South Asian University, it will be unacceptable to others. Hence, the University should be set up in a smaller member country. There is another opinion which pictures the University as a union of students from all over South Asia. However, before establishing such a University, free interaction between academia, researchers and students in the region should be encouraged.

ASEAN and Economic Growth

ASEAN+3 do not have a very strong institutional mechanism. Singapore is blamed for its bilateral programme. ASEAN has a trade surplus with China, but India does not. However, with a growing manufacturing and services sector, India need not fear a trade deficit. A uniform opinion on the economic dominance of India in South Asia is questionable. India may have the potential for becoming a leading economy but her neighbours might not share the same view. Moreover, investments and services sector opening up are a contentious political issue in most South Asian countries.

SAARC and Connectivity

In ancient civilizations, economic or trade links were opened for neighbouring civilizations. In the recent past, significant shift is seen in India's policy on regional cooperation when it promised to make borders irrelevant. The change in policy needs to be analyzed in the larger context. Before partition of India in 1947, there was a natural direction for trade. However this was disrupted after formation of Pakistan in 1947 and Bangladesh in 1972. Connectivity was weakened in the region. SAARC is trying to restore it. However, trade includes the exchange of goods and the flow of labour. It is doubtful if connectivity can increase without labour mobility.

Indo-Pak Economic Relations

Concern for economic growth is evident but the government has played a limited role in addressing these concerns. Sir Creek discussion between India and Pakistan has gained momentum only because of the EEZ in 2009. Economic exchanges between neighbours will continue but there will be no major peace dividends. Moreover, low level of free trade between India and Pakistan is due to political mistrust. Political failure in SAARC can be held responsible for its economic failure.

SAARC Trade

Member countries have strengthened bilateral trade with each other. This has hampered regional trade agreements such as SAFTA. Also, it is not possible to always predict the success of a FTA for

member countries. For example, when tariffs were cut between India and Sri Lanka, only copper trade increased between the two initially. India has felt the need to provide economic support to Bhutan for larger political concerns. However, this relationship is of a different nature and has existed prior to SAARC. India has not behaved like a strategic benign leader in the region, and is unsure of its priorities. An 8-9 percent growth rate has had limited impact on alleviation of poverty in India. Defence expenditure has importance but geopolitical perspectives are not always beneficial. If economy is given precedence it can improve relations between states. Expansion of SAARC adds additional sources of economic and commercial exchange.

SAARC and Counterterrorism

In the 14th SAARC summit there was no mention of terrorism or adoption of a common approach to counter terrorism in the region. SAARC should take up the issue of states promoting terrorism in the region. If there is a joint mechanism to counter terrorism, between India and Pakistan, then terrorism can be discussed on the regional table. However, action on this remains limited. Also, a regional organization cannot ignore global challenges like global warming, WMD proliferation and energy security.

Concluding Remarks

SAARC meetings are important as they are an indication of intention to cooperate. India's increased growth rate has attracted countries to the region to share economic benefits. This process will continue and the region will grow and prosper with India.

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INDIA’S TRADE EXPERIENCE WITH SAARC AND THE FUTURE OF SAFTAAlok Kumar Pandey, Annapurna Dixit

ABSTRACT

ndia is also committed to ensure that the special and differential treatment provisions for developing countries under different WTO agreements are translated into specific enforceable dispensations. Currently, India has adopted WTO norms in these sectors i.e. Agriculture, Trade and Industry, Intellectual property and services. SAARC is moving towards a Free Trade Area and South Asia Free Trade Agreement (SAFTA) that is an initial step in the evolution of the South Asian Association for Regional Cooperation as a regional trade block and an economic union. SAFTA was signed on January 6, 2004, during the Twelfth SAARC Summit in Islamabad. But how favorably it will affect the intra-regional trade it is uncertain as economic trouble for India could be created through the Free Trade Agreements. In the present paper, an attempt has been made to depict India’s foreign trade with SAARC nations considering the structural changes in Indian Economy as well as WTO Arrangements in 1995 and also the future of the SAFTA.

KEYWORDS

Indian Economy,SAARC, SAFTA, International Trade

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India ratifies double taxation avoidance pacts with SAARCET Bureau Feb 5, 2011, 12.20am IST

Tags: SAARC | India | Double Taxation Avoidance Agreements

NEW DELHI: India has ratified the new Double Taxation Avoidance Agreements with SAARC nations taking forward its efforts to track and unearth black money. The revised treaties will come into effect from next fiscal, according to a government notification.

"The central government hereby directs that all the provisions of the said agreement shall be given effect to in the Union of India with effect from 1st day of April, 2011," the official government Gazette notification said. According to the notification, the new agreement will apply to persons who are residents of one or more member states.

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The tax information exchange treaties amongst the South Asian Association For Regional Cooperation (SAARC) nations was struck first at Dhaka in 2005. Members of SAARC bloc include Bangladesh, Maldives, Bhutan, Nepal, India, Afghanistan, Pakistan and Sri Lanka.

However, the notification said SAARC limited multilateral agreement on avoidance of double taxation and mutual administrative assistance in tax matters shall be applicable only in the member states where an adequate direct tax structure is in place. "In case of a member state where such a structure is not in place, this agreement shall become effective from the date on which such a member state introduces a proper direct tax structure and notifies the SAARC secretariat to this effect," the gazette notification said.

India is in the process of negotiating DTAA with 65 countries. This is to broaden the scope of article concerning exchange of information, specifically regarding banking and taxpayers not covered earlier.

Finance minister Pranab Mukherjee had recently unveiled a five pronged strategy to check and curb black money in the country. He said DTAA and Exchange of Taxation Information Agreement are two instruments under which information can be obtained and that the government has already amended pacts with 23 countries to get information from various banks.

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Portal:SAARCFrom Wikipedia, the free encyclopedia

S A A R C p o r t a l

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The South Asian Association for Regional Cooperation (SAARC) is an economic and political organization of eight countries in Southern Asia. In terms of population, its sphere of influence is the largest of any regional organization: almost 1.5 billion people, the combined population of its member states. In the late 1970s,Bangladesh President Ziaur Rahman proposed the creation of a trade bloc consisting of South Asian countries. The Bangladeshi proposal was accepted by India, Pakistanand Sri Lanka during a meeting held in Colombo in 1981. In August 1983, the leaders adopted the Declaration on South Asian Regional Cooperation during a summit which was held in New Delhi. The seven South Asian countries, which also included Nepal, Maldives and Bhutan, agreed on five areas of cooperation:

Agriculture and Rural Development

Telecommunications, Science, Technology and Meteorology

Health and Population Activities

Transport*

Human Resource Development

Afghanistan was added to the regional grouping at the behest of India on November 13, 2005, With the addition

of Afghanistan, the total number of member states were raised to eight (8). In April 2006, the United States of

America and South Korea made formal requests to be granted observer status. The European Union has also

indicated interest in being given observer status, and made a formal request for the same to the SAARC Council

of Ministers meeting in July 2006. On August 2, 2006 the foreign ministers of the SAARC countries agreed in

principle to grant observer status to the US, South Korea and the European Union. On 4 March

2007, Iran requested observer status. (more)

Show new selectionsS e l e c t e d A r t i c l e

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The economy of India is the fourth-largest in the world as measured by purchasing power parity (PPP), with

a GDP of $3.3 trillion. When measured in USDexchange rates it is the tenth largest in the world, with a GDP of

$691.8 billion. However India's huge population results in a relatively low per capita income ($3,100 at PPP).

Services are the major source of economic growth in India today, though two-thirds of Indian workforce earn

their livelihood directly or indirectly through agriculture. In recent times, India has also capitalised on its large

number of highly-educated populace fluent in the English language to become a major exporter

ofsoftware services, financial services and software engineers. For most of India's independent history,

a socialist inspired approach was adhered to, with strict government control and regulation on private

sector participation, foreign trade andforeign direct investment. Since the early 1990s, India has gradually

opened up its markets through economic reforms by reducing government controls on foreign trade and

investment. The socio-economic problems India faces are the burgeoning population, growing inequality, lack

of infrastructure, growingunemployment and growing poverty. (more...)

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S e l e c t e d Q u o t a t i o n

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“An error does not become truth by reason of multiplied propagation, nor does truth become error because nobody sees it. Truth stands, even if there be no public support. It is self sustained. ”

Mahatma Gandhi

S e l e c t e d P i c t u r e

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View from inside of King Faisal Mosque at night in Islamabad, Pakistan.Photo credit: Farazilu

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D i d y o u k n o w

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...that the The Grand Friday Mosque at Islamic Centre, an architectural landmark in Malé,Maldives, is

named after Sultan Mohammed Thakurufaanu-Al-A'z'am?

...that Kashi (Benares) is the place where Lord Vishnu is supposed to have made an offering of an eye

to Lord Shiva?

Kashi is also name of the person going to become a Legendary person in future from Bijapur district,

which is in Karnataka,INDIA.

...that since the first Urdu language typewriter was created in 1911, the Urdu keyboard layout has evolved

to accommodate the needs of the digital age?

...that notated Bengali writer Rajnarayan Basu was a tutor of Asia's firstNobel Laureate Rabindranath

Tagore?

...that Nepal receives US$50 million a year through the Gurkha soldiers who serve in

the Indian and British armies and are highly esteemed for their skill and bravery?

S e l e c t e d M e m b e r C o u n t r y

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[hide]

V

 

T

 

E

South Asian Association for Regional Cooperation

Agreements South Asian Free Trade Area

MembersAfghanistan

 

Bangladesh

 

Bhutan

 

India

 

Maldives

 

Nepal

 

Pakistan

 

Sri Lanka

Observers

Australia

 

China

 

European Union

 

Iran

 

Japan

 

Mauritius

 

Myanmar

 

South Korea

 

United States

Guest South Africa

Shortcut:

WP:PSL

Sri Lanka, officially the Democratic Socialist Republic of Sri Lanka (Sinhalese: 

, Tamil: இலங்கை�; known as Ceylon before 1972) is an island nation in South Asia, located about 31

kilometers (18½ mi) off the southern coast of India. Originally known as Heladiva, it is home to around twenty

million people.

Sri Lanka is a strategic naval link between West Asia and South East Asia and has been a centre

of Buddhist religion and culture from ancient times. Today, Sri Lanka is a multi-religious and multi-ethnic

nation, with a fifth of the population following faiths other than Buddhism -

notably Hinduism, Christianity and Islam. The Sinhalese community forms the majority of the population

(around 80%), with Tamils, who are mostly concentrated in the north and east of the island, forming the

largest ethnic minority. Other communities include the Muslim Moors and Malays as well as Burghers.

Famous for the production and export of tea, coffee, rubber and coconuts, Sri Lanka boasts a progressive and

modern industrial economy. The natural beauty of Sri Lanka's tropical forests, beaches and landscape, as well as

its rich cultural heritage make it a world famous tourist destination.

After over two thousand years of rule by local kingdoms, parts of Sri Lanka were colonized by Portugal and

the Netherlands beginning in the 16th century, before the control of the entire country was ceded to the British

Empire in 1815. During World War II Sri Lanka served as an important base for Allied forces in the fight

against theJapanese Empire. A nationalist political movement arose in the country in the early 20th century,

with the aim of obtaining political independence, which was eventually granted by the British after peaceful

negotiations in 1948. Since then Sri Lanka has struggled in maintaining a liberal democracy and

stunted economic progress due to the ongoing conflict between the Sri Lankan government and a separatist

militant group known as the Tamil Tigers in the northeastern parts of the country.

 More about Sri Lanka ...

A t a g l a n c e

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Member Country Capital

Afghanistan Kabul

Bangladesh Dhaka

Bhutan Thimpu

Republic of India New Delhi

Maldives Malé

Nepal Kathmandu

Pakistan Islamabad

Sri Lanka Colombo

S e l e c t e d M a p

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This 1907 map of Eastern Bengal clearly shows the spread of Bengali culture towards the east, encompassing

modern Bangladesh, Assam,Tripura, Mizoram, Nagaland and Arunachal Pradesh. Today's West Bengallies to

the west of this region, forming the eastern bottleneck of India, stretching from the Himalayas in the north to

the Bay of Bengal in the south. The state has a total area of 88,752 km². The Darjeeling Himalayan hill

region in the northern extreme of the state belongs to the eastern Himalaya. This region

contains Sandakfu (3,636 m) — the highest peak of the state. The narrow Terai region separates this region

from the plains, which in turn transitions into the Ganges delta towards the south. The Rarh regionintervenes

between the Ganges delta in the east and the western plateau and high lands. A small coastal region is on the

extreme south, while theSundarbans mangrove forests form a remarkable geographical landmark at

the Ganges delta.

Map credit: Astrokey44

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S e l e c t e d B i o g r a p h y

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Siddhārtha Gautama (Sanskrit; Pali: Siddhāttha Gotama) was a spiritual teacher from ancient India and the

founder of Buddhism. He is universally recognized by Buddhists as the Supreme Buddha (Sammāsambuddha)

of our age. The time of his birth and death are uncertain: a majority of 20th-century historians date his lifetime

fromcirca 563 BCE to 483 BCE, but some more recent scholars have suggested dates around 410 or 400 BCE

for his death. This alternative chronology, however, has not yet been accepted by other historians.

Gautama, also known as Shakyamuni (“sage of the Shakyas”, in Pali"śakamuṇi"), is the key figure in Buddhism,

and accounts of his life, discourses, and monastic rules were summarized after his death and memorized by

thesangha. Passed down by oral tradition, the Tripitaka, the collection of discourses attributed to Gautama,

was committed to writing about 400 years later.

Siddhartha was born in Lumbini, Nepal. His father was King Suddhodana, the chief of the Shakya nation, one of

several ancient tribes in the growing state ofKosala; Gautama was the family name. His mother, Queen Maha

Maya(Māyādevī) and Suddhodana's wife, was a Koliyan princess. (more...)

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W i k i p e d i a i n S o u t h A s i a n L a n g u a g e s

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অসমি�য়া� (Assamese) • भो�जपु�री� (Bhojpuri) • বাং��লা� (Bengali) • ই��র ঠা�র/মিবাংষ্ণু� মি�য়া� �মি�পু�র�(Bishnupriya Manipuri)

•  ްލ� ަހ� न्दी� (Hindi) • ಕನ್ನ�ಡ(Kannada) • कॉ�शु�री (Kashmiri) • മലയാ�ളം� (Malayalam)ગુ�જરા�તી� (Gujarati) • हि • (Dhivehi) ަމ�

• मरी�ठी� (Marathi) • ने�पु�ली�(Nepali) • ଓଡ଼ି�ଆ (Oriya) • پښتو (Pashto) • فارسی (Persian) • ਪੰ�ਜਾ�ਬੀ� (Punjabi)

• सं�स्कॉ� त(Sanskrit) •Santali (Santali) • सिसंनेधि� (Sindhi) • தமி�ழ் (Tamil) • తెలు�గు� (Telugu) • اردو(Urdu)

S e l e c t e d D e s t i n a t i o n

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Malé (Dhivehi: ްލ� population 81,647 ("pronounced: "Maa-lay) ,(ަމ�(2004), is the capital of the Republic of Maldives located at the southern edge of North Male' Atoll Kaafu Atoll. Traditionally it was the King's Island from where the ancient Maldive Royal dynasties ruled and where the palace was located. Formerly it was a walled city surrounded by fortifications and gates (doroshi). The Royal Palace (Gan'duvaru) was destroyed along with the picturesque forts (kotte) and bastions (buruzu), when the city was remodelled under Ibrahim Nasir's rule.

Although Malé is geographically located in Male' Atoll, Kaafu Atoll, administratively it is not considered part of

it. A commercial harbour is located in the Island. It is the heart of all commercial activities in the country. Many

government buildings and agencies are located on the waterfront. Malé International Airport is on

adjacent Hulhule Island which includes a seaplane base for internal transportation. Several land reclamation

projects have expanded the harbour. Malé is located at 4°10' North, 73°30' East (4.1667, 73.5).

Malé was struck by the tsunami that swept across the western coast of Sumatra on December 26, 2004. It was

affected by the Indian Ocean earthquake which followed with the waves flooding two-thirds of the city. The

earthquake and subsequent tsunamis reportedly killed over 220,000 people around the rim of the Indian Ocean.

(more)

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R e l a t e d p o r t a l s

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Afghanistan — Bangladesh — Bhutan — India — Maldives — Nepal — Pakistan — Sri LankaAustralia — China (PRC) — European Union — Iran — Japan — Mauritius — South Korea — United

States — South Africa

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