Place grated coconut in a large bowl.
Using a mortar and pestle or food processor, grind the chili and onion into a coarse paste.
Add this paste to the coconut.
Mix in salt, lime juice, and Maldive fish (if using).
Gently mix everything with your hands or a spoon until well combined and slightly moist.
Taste and adjust lime and salt to your liking.
Serve fresh as a side with rice, roti, or hoppers.