President Dr Mohamed Muizzu has revealed that the balance of the Sovereign Development Fund (SDF) has now reached USD 126 million.
Speaking at the ceremony held to mark the second anniversary of the current government, President Muizzu presented an overview of the country's current financial situation.
In his address, the President stated that the previous government had accumulated substantial debts under conditions harmful to the country. He noted that key assets, including Dharumavantha Hospital, had been mortgaged at high interest rates.
"Some properties, including Dharumavantha Hospital, have been mortgaged at high interest. They no longer remain ours if the loans default. The country had been placed in a dangerous situation. However, the budget is being managed to achieve the desired goal. We will bring the development the people desire,” he said.
President Muizzu noted that the government had only USD two million and MVR 2.7 million in the Sovereign Development Fund when the new administration took office. However, so far this year, the fund has reached a balance of USD 126 million, he said.
Further noting that USD 584 million has been allocated to banks from October last year to October this year as part of the amendments to the Foreign Exchange Act, the President said this has brought the official foreign currency reserves to USD 864 million for debt servicing and other foreign exchange requirements.
Turning to foreign investments, President Muizzu said investments under the Special Economic Zone (SEZ) Act will boost and diversify the economy. He noted that the government is working hard to achieve economic growth for the country. Highlighting the work being done under the SEZ Act, the President said that 19 sectors of the Act have been amended to allow investment exclusively for Maldivians in those sectors.
"A township project in Noonu Atoll has now been given opportunity under the SEZ Act. Bringing in projects from various directions and securing investment will be a major boost to the economy. Diversification is essential," he said.
The President added that with the amendments to the Foreign Investment Act, the Maldives is gaining the confidence of foreign investors. As an example, he highlighted Google’s recent decision to invest in a submarine cable station in the Maldives.
He said the Pearl Visa programme is also underway to attract investors to the Maldives. The government is introducing measures to attract investment to the uninvested areas in the north and south of the country, he said, adding that these measures will be finalised before the end of this year and the changes announced.