The International Monetary Fund (IMF) has expressed its support for the reform measures being implemented by the Maldivian government to strengthen the country’s financial situation, emphasizing the importance of swift execution.
The IMF made this statement during a meeting with the Economic Affairs and Public Finance Committee of the People’s Majlis, as part of a visit by an IMF delegation currently assessing the Maldives' economic landscape.
During the meeting, Niki Sodsriviboon, the head of the IMF delegation, stated that the Maldives' economy is expected to grow this year, with the IMF forecasting a 5% growth rate. This positive outlook is attributed to an increase in tourist arrivals and the opening of the new terminal at Velana International Airport.
However, the IMF warned that the country faces significant debt repayment obligations in the coming years, stressing the urgency of implementing the government's proposed financial reforms. The institution commended the decisive steps taken to reduce expenditures and enhance revenue, particularly amendments to the Debt Law and Fiscal Responsibility Act, as well as reforms to the Aasandha healthcare system.
"The challenges currently facing the Maldives stem from deep-rooted issues that have built up over many years. We welcome the government's acknowledgment of these issues and their efforts to address them. Our hope is that these problems will be resolved swiftly," the IMF stated.
While acknowledging the government's reform efforts, Members of Parliament at the meeting underscored the necessity of international collaboration, including the support of organizations such as the IMF, to ensure the successful implementation of these measures.