Editorial

Issue 3 of Volume 1 is being published with momentous changes in the offing both for the country and indeed the for the world. At home the China Maldives Free Trade Agreement has come into effect on the 1st of January, the IMF has warned us on an increasing risk arising from 'Bank Sovereign nexus' while our fiscal condition continue to deteriorate. The hurt and pain that Sri Lankas experienced in 2022 seem to be even nearer. We are pleased that commentators address all these aspects through articles in this issue.

Athif Shakoor's 'Re-visiting the China Maldives Free Trade Agreement' (CMFTA), is a timely review of the CMFTA as was finally implemented 7 years after the initial signatures by both countries. The updated review probes deeper into the possibilities of imports from and exports to China, the possibilities in re-exports and also survey the potential for expansion in services.

Haleem's 'The worsening public finances’ is a study on the balooning of state expenditure, leading to increasing deficits even as revenue was increasing. Illustrated with relevant graphs, the article opines that only public opinion can bring out a marked change.

Mihad’s article on the dangers of the increasing reliance of the ‘Bank-sovereign nexus’ harkens to IMF’s warning on the issue in February. The article also explains the dangers and pitfalls facing states because of their over reliance on the banks for financing requirements and refers to how individual countries had acted to minimize such risks.

Ahmed’s article ‘Hurt, pain and recovery: the path forward for the Maldives’ is a timely article given the frail nature of our fiscal state. Relating to the experience of Sri Lankans when their economy collapsed, the article offers hope in the fact that Sri Lankan economy is recovering today, and that it might still be not too late for us.