Shuluri (Iruaric: "Wet Ones") were "Aquatic Elves" of Shadow World. They were not an adventurer race in the I.C.E. Age, but were known to exist in Emer. They were very distantly related to the other Elves, resembling Iylari, but with hidden gills in their throats and a radically different language. In contrast, Rolemaster had "Grey Elves" who were not High Elves or Wood Elves, being "Sea Elves" like the Ashrim. The Shuluri were quite different, living on land or underwater, usually shallow parts such as coral reefs. Their population was concentrated in Malqanar and the Bay of Songs on southeast Emer.
More specifically, Malqanar was their land holdings, whereas others lived under the Bay. The Shuluri of the Bay of Songs were possibly the "Shanarians" of Quin Telaren, who spoke of a city he could not pronounce under a bay ("Yanaar.") Shuluri was a sonar-like language that was largely incomprehensible to others. The joke of a "ten foot Shulurian fishing pole" would be that if you were fishing from underwater, you would need a really long pole to reach above the surface.
Behind the Scenes
While "Yanaar" is conspicuously close to "Malqanar" in this context, the choice of how the beginning of the word was messed up might not be arbitrary. It is possible this was one of many Lovecraft references in the game from that time period. The "Deep One" underwater city in "The Shadow over Innsmouth" was called "Y'ha-nthlei", making it a portmanteau out of "Y'ha-n" and "anar."