News Desk
Marking a significant strengthening of bilateral relations, Foreign Minister Iruthisham Adam has hailed India’s decision to extend a crucial currency swap facility as clear evidence of the deep-seated friendship between the two nations.
Writing on the social media platform X, minister Iruthisham expressed her sincere gratitude to the Indian government and India’s External Affairs Minister, Dr S. Jaishankar, following the extension of the 30 billion Indian rupee facility provided through the Reserve Bank of India (RBI).
Minister Iruthisham noted that the decision underscores the mutual respect and friendship shared by both nations. She reaffirmed Maldives’ commitment to elevating historical bilateral ties to new heights under the foreign policy directions of President Dr Mohamed Muizzu, praising the administration’s efforts to stabilise the domestic economy and bolster long-term prosperity.
In a press release issued on Friday, the Indian High Commission in Male’ confirmed the extension of the 30 billion rupee facility between the RBI and the Maldives Monetary Authority (MMA). The facility, designed as a short-term financing mechanism, was rolled over to assist the country in navigating current financial challenges and to support its government and citizens.
The initial agreement was established during President Muizzu’s official visit to India in 2024 under the South Asian Association for Regional Cooperation (SAARC) currency swap framework. That agreement made available $400 million along with the 30 billion Indian rupees, with the first tranche of the rupee facility drawn down by the MMA on 23 April 2026.
According to the High Commission, New Delhi has provided more than $1.1 billion in total swap assistance to the Maldives through its central bank since the framework was introduced in 2012.
Alongside currency swaps, India has supported the Maldives through Treasury bill facilities and long-term Treasury bonds valued at $250 million and $100 million respectively. Earlier this year, Maldives repaid a separate $400 million currency swap and cleared a $50 million Treasury bill in September—part of a $150 million debt incurred across three tranches in 2019. The High Commission noted that the Indian government absorbed $43 million in interest costs associated with the Treasury bills.
Indian diplomats highlighted that these financial mechanisms have played a vital role in sustaining the economic stability of the Maldives.
Reaffirming the archipelago’s key position under India’s “Neighbourhood First” policy and its “Vision SAGAR” framework for regional maritime security, the High Commission reiterated New Delhi’s commitment to serving as a reliable partner and implementing economic and maritime security agreements reached during President Muizzu’s state visit.
