The Sovereign Development Fund (SDF) has experienced a significant financial boost so far this year, accumulating a total of USD 103.4 million, according to the Ministry of Finance and Planning's latest Weekly Fiscal Development Report.
This inflow represents a substantial 45 percent increase compared to the USD 71.3 million deposited during the corresponding period last year, signaling a positive trend in the nation's financial reserves.
In tandem with the robust growth in the SDF, the government has also ramped up its debt repayment efforts. Expenditure on loan repayments has surged to USD 285.3 million to-date, marking a 120 percent increase from the USD 129.7 million spent on debt servicing during the same period last year.
This dual focus on bolstering the Sovereign Development Fund and actively reducing national debt underscores the government's commitment to fiscal stability and long-term economic resilience.
The SDF, established in 2016, serves as a crucial financial tool for the government, designated for meeting debt obligations, funding vital development projects, and mitigating the impact of unforeseen economic shocks. It operates independently of the central bank's reserves. The fund's revenues are primarily generated from airport development fees levied on departing passengers, dividends from the Maldives Airports Company Limited (MACL), and enhanced fees for select airport services.