Analysis: Economy at stake as political turmoil grips Maldives

“Potential visitors are questioning the safety and security in the island nation as the political turmoil in Maldives makes headlines in a large number of international media,” claimed MATI in a recent statement, adding that resorts had registered 500 cancellations in the first week following the change of government.

“Various allegations such as the installation of an Islamic regime, possible enactment of full Sharia law and Anti Semitic remarks made by politicians at public gatherings have also caught the attention of the international press,” MATI stated.

With no election date in sight, the economic consequences of the ongoing political turmoil in the Maldives are likely to be far reaching. The ongoing climate of uncertainty – anathema to business, foreign investment and especially tourism – is likely to persist while the ousted Maldivian Democratic Party (MDP) continues to challenge the legitimacy of the new government, which in turn has resisted setting a date for early elections despite pressure from a growing number of international bodies.