Efforts are underway to establish a free Economic Zone and Free Movement Zone between the Maldives and Sri Lanka.

The free economic zone will provide huge tax breaks for imports and exports between the two countries. The free movement zone will ease border controls and make travel between the two countries much easier.

If signed, the two agreements will be the first such agreements in South Asia. The agreements will grant the right to work, do business and buy property without a visa.

Sri Lankan media reported that the agreements will also apply to customs, education, health and banking.

Reports also say officials from both countries have held discussions to establish the two agreements.

Rights granted to citizens of both countries under the agreements:

• No visa is required. Citizens will have the right to do business.
• Citizens will have the right to buy and rent property and trade in real estate.
• State education, health services and other public services.
• Double taxation will be abolished and taxes will be aligned.
• Students, academic individuals and research students will be entitled to travel without a visa.

The Maldives government has not yet commented on the two agreements. The Sri Lankan government has also not officially commented.

Meanwhile, Sri Lankan President Anura Kumara Dissanayake is scheduled to visit the Maldives in the last week of July.