In a bold display of financial recovery and discipline, President Dr. Mohamed Muizzu has revealed significant improvements in the Maldives’ economic health—despite inheriting heavy debt burdens from previous administrations.
Addressing the media at a press conference held today at the President’s Office, President Muizzu stated that over MVR 2.5 billion has been paid towards foreign loans this year alone. Yet, in spite of these substantial repayments, both the state’s official reserve and the Sovereign Development Fund (SDF) have seen remarkable growth.
“As of end-March, our official reserve stands at USD 791 million,” President Muizzu announced. “Just seven months ago, in September 2023, it had fallen to a critical low of only USD 371 million. Today, we are reversing that decline and pushing the reserve in a strong, upward direction.”
The President credited prudent fiscal management and tough decisions made under his leadership for the turnaround, adding that his administration has worked tirelessly to stabilize the economy without compromising necessary spending.
Between January 1st and April 24th this year, the state earned MVR 12.4 billion in revenue while expenditures amounted to MVR 10.5 billion—resulting in a primary surplus of MVR 1.9 billion. If debt repayments are excluded from this calculation, the President explained, the budget would reflect a surplus of MVR 3.5 billion.
“We are managing to maintain fiscal balance not by withholding essential expenditures, but by improving efficiency and planning,” he emphasized.
A highlight of President Muizzu’s briefing was the extraordinary growth of the Sovereign Development Fund. When he assumed office, the fund—meant to back foreign loan repayments—held a modest USD 2 to 2.4 million. As of April 30th, the SDF has grown to an impressive USD 121 million.
“This fund is a safeguard for the future. We are not only solving today’s problems but laying the foundation to ensure tomorrow’s stability,” the President affirmed.
This financial recovery, despite the pressure of repaying debts such as a MVR 100 million loan taken in 2022, signals a shift in direction for the Maldivian economy under President Muizzu’s stewardship. He has repeatedly vowed to clean up the financial mismanagement of the past—and today’s figures suggest he’s making good on that promise.
