MALE, April 3 (Xinhua) -- The Maldivian government successfully settled a 500 million U.S. dollar sukuk, or bonds, issued in 2021, repaying both the principal amount of 500 million U.S. dollars and the associated coupon of 24.68 million dollars, according to a statement issued by the Maldivian Ministry of Finance and Planning on Thursday.
The ministry said the Maldives faced severe fiscal and external sector pressures after the COVID-19 pandemic and the spillover effects of the Russia-Ukraine conflict in 2022. In response, the government introduced revenue-enhancing measures in 2024, especially on foreign currency revenue streams, while the Maldives Monetary Authority rolled out monetary reforms, including the Foreign Currency Act and regulations requiring the conversion of foreign currency earnings, the statement said.
These measures helped strengthen the country's external position, with gross international reserves reaching record levels at the end of March 2026. They also aided the accumulation of liquid foreign currency balances in the Sovereign Development Fund, the ministry said.
The statement said the economy is projected to grow 5.3 percent in 2026, supported by record tourist arrivals and infrastructure upgrades, including the new passenger terminal at Velana International Airport and improvements at Hanimaadhoo International Airport.
However, the ministry warned that recent developments in the Middle East and their impact on global energy and commodity markets could weigh on the medium-term growth and macro-fiscal outlook.
The government said it is working to ensure uninterrupted fuel supplies, maintain public services and sustain economic activity. It said the Maldives still has access to existing multilateral trade financing facilities to meet annual energy needs and is engaging with multilateral partners to secure additional financing for fuel imports.
Looking ahead, the government said any new borrowing would align with fiscal and debt sustainability goals. It also said it recently completed the successful rollover of a bilateral bond and was continuing talks with bilateral partners to reduce refinancing risks and meet additional financing needs. ■