The incumbent Administration’s unwavering commitment to the ongoing fiscal reform efforts has seen Fitch Ratings, one of the world's largest credit rating agencies, maintain its CC rating for the Maldives.
The rating reflects Fitch's assessment that the country’s tourism sector continues to expand and gross foreign exchange (FX) reserves have increased following support from the Reserve Bank of India (RBI).
The Maldives' gross foreign reserves increased to USD 856 million in April 2025, from a record low of USD 371 million in September 2024. The increase was driven by a USD 400 million drawdown under a currency swap arrangement signed by the Maldives Monetary Authority (MMA) with the RBI in October 2024, which alleviated imminent external liquidity strains.
Gross foreign reserves also rose due to solid tourism-related receipts and the newly implemented Foreign Currency Act, which mandates tourism-related businesses to exchange either 20 percent of monthly foreign-currency receipts or a fixed amount up to USD 500 per tourist arrival into rufiyaa with local banks.
The Ministry of Finance and Planning in a statement following Fitch's rating, pointed out that tourist arrivals to the Maldives have increased by 9.4 percent so far this year compared to 2024, which had boosted Fitch's GDP growth forecast of 4.8 percent for 2025.
With the opening of the new terminal at Velana International Airport (VIA), the government expects GDP growth to reach 6.0 percent in 2026, the Ministry said.
Fitch's assessment amid significant measures for fiscal reforms and financial sustainability as the country maintained its budget surplus so far this year - crossing USD 71.3 billion as of 5 June. The budget surplus has continued due to improved revenue and strong budgetary controls to bring State expenditure down to a reasonable level, it added. The Ministry has noted that revenue, including foreign exchange earnings, has increased significantly due to new revenue measures such as airport taxes and fees, green tax and import duty rates.
The ongoing and planned fiscal reforms and austerity measures will boost productivity and investments, paving the way for lower debt to GDP ratio under the government’s medium-term debt strategy.
The government has indicated its commitment to increasing transparency and results-oriented policies, while sustaining the economy, restoring investor confidence and strengthening economic and fiscal resilience.
At the same time, efforts are underway to devise medium-term debt strategies and introduce structural reforms aimed at improving the overall investment climate to boost productivity.