Lack of government-promoted communication
Since ancient times there was a lack of communication between the administrative capital Malé and the most distant atolls (North and South) of the Maldive chain. The government of the Maldive Islands never had a scheduled shipping line that could have provided regular communication with the distant Southern Atolls. Forgotten by the capital, there was not even a regular mail service to this remote end of the country.
The result was a chronic lack of elementary needs in the distant Atolls, such as certain essential food items and clothing and, in case of epidemics, even the medical assistance and medicines urgently required.[3]
In the face of the capital's inability to provide these basic services, the people in the Southern Atolls were left to fend for themselves.
Traditionally, the void left by this lack of necessary trade and communication was filled by affluent merchant families from the three Southern Atolls. Using special large sailships (odi or vedi), they conducted direct external trade with neighboring countries. Thus they used to make a yearly trip to a harbour in Ceylon or South India without involving the capital.
It was certainly easier for the heavy trading ships of Southern Maldives to sail straight across the open ocean to India or Ceylon, where British rule provided a safeguard and a common sense of belonging, than to make difficult navigation northwards through the treacherous reefs of the long atoll chain to sail to the capital. Male' was after all a small trading post compared to harbors like Colombo, Cochin or Tuticorin.
However, in practice this meant that the central government had little control over the import trade conducted within the country. There was no conflict as long as all the countries involved were under the British Empire and so this status quo was maintained until after World War II.
Imposition of trade restrictions
When the British initiated the process of decolonization in South Asia the situation changed drastically. In 1947 the Maldive government, while still a British protectorate, took the first steps towards independence backed by disgruntled Malé merchants, who wished for a privileged share of the trade with the Southerners. Thus the Maldive Government, with the co-operation of the British authorities, imposed the requirement to carry passports and visas to travel to Sri Lanka and India on the captains and crews of the Southern trading ships, at the time that the British administration was leaving those newly independent former British colonies.
The new travel documents for the Southern Maldivian traders and sailors were to be issued in Malé. However, the government and the traders of the capital aimed to attain control and revenue from this lucrative trade without consulting with a representation of the concerned Southern traders. This unilateral action proved detrimental to the harmony of existing traditions concerning autonomous trade, and it was perceived as contempt in the South.
Insurrection
British troops were stationed in the islands of Gan and Hithadhoo in Addu atoll since the time of the Second World War. However, the Maldive central government denied the neighboring islanders any chance of bartering with them. Furthermore, after the introduction of the harsh new measures to control the import and export trade, the central government went on to stipulate other measures of control such as poll and land tax.
In addition, the government of the Maldive Islands posted its own militiamen in the atoll to ensure that absolutely no trade was carried out without the government’s knowledge. The arrest and physical assault of a son of a wealthy family (possibly for a breach of one of the new restrictions) by one of these militiamen led to the first revolt in which a mob rose against him. He was given sanctuary by the British until the situation calmed down and when the government prosecuted the alleged conspirators vouching the militiaman's account of events. The men were convicted and reportedly subjected to humiliating forms of punishment such as public flogging.
The Maldivian Government was delaying the ratification of a 100-year lease of the islands Gan and Maamendoo, which greatly distressed the British. Sometime later, under a new agreement with the government, the Addu people were allowed to seek employment in the British facilities, enabling them to obtain a rewarding incomes and lavish goods while relishing the idea of less dependence. In 1957, the sultan appointed Ibrahim Nasir as the prime minister of the sultanate; Nasir ordered the British to cease all construction undertakings in Addu. Local rumour in Male' suggested that this possibly led an already infuriated civilian British contractor posted there to suggest to the unhappy islanders the idea of independence from the central government. However, this is not supported by historical documents.