News Desk
The Government of Maldives has completed the full settlement of the USD 500 million Sukuk issued in 2021, marking one of the most significant financial milestones in recent years and strengthening confidence in President Dr Mohamed Muizzu’s economic agenda.
In a statement issued by the Ministry of Finance and Planning, officials confirmed that the government repaid both the principal amount and a USD 24.68 million coupon using the Sovereign Development Fund and other foreign currency reserves. The move follows months of fiscal tightening, reserve management and targeted reforms aimed at stabilising the economy after years of external shocks.
The repayment comes at a time when global energy prices and geopolitical tensions continue to place pressure on small economies. Yet the government has maintained that its fiscal strategy is designed to protect the most vulnerable while ensuring long‑term sustainability. Officials noted that debt indicators have already improved following the Sukuk settlement, with further refinancing measures underway.
The ministry said the administration remains committed to responsible borrowing, safeguarding debt sustainability and securing financing that aligns with national priorities. Recent steps include the successful rollover of a bilateral bond and ongoing engagement with international partners to manage refinancing risks.
GDP growth is projected at 5.3 percent for 2026, supported by major infrastructure projects such as the Velana International Airport expansion and the Hanimaadhoo International Airport upgrade. Revenue collection has also reached record levels, reflecting a broader recovery in tourism and trade.
Business leader and political figure Qasim Ibrahim publicly praised the achievement, describing it as a testament to President Muizzu’s discipline and resolve. In a message shared on social media, he said the settlement demonstrated “credibility, resilience and responsible leadership” at a time of global uncertainty. He added that meeting such obligations strengthens investor confidence and reinforces the Maldives’ standing in international financial circles.
Qasim expressed confidence that the remaining loan obligations due this year will also be met, saying that freeing the nation from the weight of past debt is akin to safeguarding sovereignty. He pledged his continued support for the administration as it works to consolidate economic stability.
Despite the challenges posed by rising global energy prices, the government is preparing a new set of fiscal measures to cushion households and maintain macroeconomic stability. The Ministry of Finance and Planning said it will continue to monitor global developments closely while ensuring that the Maldives remains on a steady path of recovery and growth.
The successful Sukuk repayment has been widely viewed as a clear signal of the government’s commitment to honouring national obligations and strengthening the country’s financial footing. It also reinforces President Muizzu’s message that the Maldives can navigate global turbulence with confidence and strategic planning.
