Chinese Ambassador to the Maldives Kong Xianhua, citing China is not the reason behind Maldives’ debt struggles, states China is nevertheless willing to help its “friend” resolve the problem.
Speaking regarding Maldives’ debt situation during Sun’s Diplomatic Focus Program, Ambassador Kong described the financial ties between China and Maldives as a sustainable one. He highlighted the successful completion of several projects funded by China under its Belt and Road Initiative (BRI), including the Sinamale’ Bridge, the development of Velana International Airport, and thousands of housing units.
The Ambassador detailed that the revenue generated from projects implemented with China are adequate to repay loans withdrawn by the Maldivian government for these projects, reinforcing the sustainability of the financial partnership.
Speaking further, Ambassador Kong cited the shocks brought on by the COVID-19 pandemic, unfinished projects and unproductive products which does not generate sufficient financial revenue as reasons behind Maldives’ debt struggles.
Chinese Ambassador to the Maldives Kong Xianhua speaks at Sun's Diplomatic Focus program.
He emphasized that China is not reason behind Maldives’ debt struggles.
“Even though China is not the reason of these debt difficulties, we are willing to help our friends to solve this problem,” he said.
In this trajectory, the Ambassador detailed that relevant Chinese and Maldivian stakeholders have fully completed a debt rearrangement which will provide significant financial relief to the Maldives.
“These arrangements not only demonstrate our firm support for the fiscal and financial stability of the Maldives, but also our firm belief in the reform measures taken by the Maldivian government and the huge potential of the Maldivian economy,” he added.
Ambassador Kong also revealed that China has announced new projects will full financial assistance. He also expressed strong prospects for increased direct investment from China in the Maldives.
Notably, Maldives and China signed a development cooperation agreement last Thursday, through which the latter pledged approximately MVR 1.3 billion in assistance to the Maldives over the coming years. According to a statement issued by the Foreign Ministry, China has pledged to provide an assistance package of RMB 600 million to support the Maldives’ key developmental priorities over the coming years.
Maldivian Foreign Minister Dr. Abdulla Khaleel (R) and Chinese Ambassador Kong Xianhua (L) sign an agreement for an assistance package of RMB 600 million on December 25, 2025. (Photo/Foreign Ministry)
This is equivalent of approximately MVR 1.3 billion.
According to Foreign Minister Abdulla Kahleel, the assistance under the new agreement will focus on three priority projects; the development of the China–Maldives Friendship Hospital in Villimale’, the Male’ and Villimale’ road development project, and the construction of 50 council buildings across the Maldives.