The Government of Maldives has completed the full repayment of a USD 500 million sovereign sukuk issued in 2021, marking a significant step in reducing national debt and reinforcing fiscal stability, according to a statement released by the Ministry of Finance and Planning on April 2.
Authorities confirmed that the repayment included both the principal amount and an additional USD 24.68 million in coupon payments. The settlement was financed through the Sovereign Development Fund and existing foreign currency reserves, reflecting improved liquidity conditions and strengthened external sector performance.
The government attributed this milestone to a series of fiscal and monetary reforms implemented since 2024, aimed at boosting foreign currency inflows and stabilizing macroeconomic conditions. Key measures included revenue enhancement initiatives and regulatory changes mandating the conversion of foreign currency earnings. These efforts, supported by monetary policy adjustments from the Maldives Monetary Authority, have contributed to a buildup of gross international reserves, which reached record levels by the end of March 2026.
The repayment comes after a period of economic strain triggered by the COVID-19 pandemic and global shocks linked to the Russia-Ukraine conflict, which had weakened the country’s fiscal position. Officials stated that the recent policy adjustments have helped reverse these pressures and restore economic resilience.
Looking ahead, the government projects a strong fiscal year in 2026, with real GDP expected to grow by 5.3 percent. Growth is anticipated to be driven by major infrastructure developments, including the completion of the new passenger terminal at Velana International Airport and upgrades to Hanimaadhoo International Airport, alongside record tourism arrivals that have already boosted state revenues in the first quarter.
Despite these gains, the government cautioned that ongoing instability in the Middle East and rising global energy prices could weigh on medium-term growth and increase fiscal pressures. In response, efforts are underway to secure fuel supply financing through multilateral partnerships and to implement policy measures aimed at mitigating the impact of higher energy costs on vulnerable populations.
In this context, the administration of President Dr Mohamed Muizzu has framed the sukuk repayment as a reflection of its broader economic vision centered on fiscal discipline, reserve accumulation, and long-term sustainability. The government’s strategy to strengthen foreign currency inflows and prioritize prudent debt management has positioned the Maldives on a more resilient economic footing following recent global shocks.
Officials further underscore that President Muizzu’s economic approach, focused on infrastructure-led growth and macroeconomic stability, is expected to play a central role in sustaining investor confidence and supporting continued expansion across key sectors. The Ministry of Finance reiterated that these policies remain integral to safeguarding economic stability while advancing national development priorities.
