Minister of Foreign Affairs, Abdulla Shahid has said that the Maldivian economy was hit hard by COVID-19 because the nation’s economy was dependent on tourism.

Speaking at the panel “Potential for South Asia” of the Horasis Extraordinary Meeting, held virtually on the side -lines of the 75th UN General Assembly, Minister Shahid said that the COVID-19 pandemic has revealed the inequalities that exist within and between countries to a shocking level.

The Foreign Minister acknowledged that, Maldives’ precarious dependency on a single industry, tourism, for the national income has led to economic collapse, despite early intervention. He added that the Maldives has taken strict measures to cut down expenditure, and formulated long-term plans for recovery including diversifying the country’s economy.

Minister Shahid expressed his gratitude to the international community and the brotherly nations in the region including India, Bangladesh and Sri Lanka for their generous assistance in the form of aid, grants, credit lines and undisrupted supply of essential commodities.

Acknowledging that SAARC needs do so much more, Minister Shahid called to strengthen intra-regional trade and connectivity to benefit from the full potential that exist in SAARC. He also highlighted that more than ever, the crisis has revealed that universal access to internet and digital technology are critical to ensure development and progress for all.

The forum was held virtually this year due to restrictions imposed by the COVID-19 pandemic. Minister Shahid, was joined by Minister of Foreign Affairs of Nepal, Pradeep Kumar Gyawali, Minister of State for Foreign Affairs of Bangladesh, Shariar Alam, and the Minister of State for Road and Transport and Highways, India, and V.K Singh.

The panel was moderated by Mr. Binodh Chaudhary, Chairman of Chaudhary Group Corp Global.