As of mid-1991, Nepal had not cultivated bilateral relations with Sri Lanka or the Maldive Islands. Nevertheless, following a visit to Nepal by the Maldives' president in May 1981, a cultural exchange and economic cooperation agreement was signed. The agreement, however, has remained dormant.

Nepal was interested in Sri Lanka's Tamil separatist movement because of its own potential problems with ethnic diversity. In line with its policy of deploring the violation of the territorial integrity of sovereign states, Nepal also expressed concern at India's military involvement in Sri Lanka during the 1980s. Nepal welcomed the conclusion of the Indo-Sri Lankan Accord of July 29, 1987.

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Source: U.S. Library of Congress