President Dr Mohamed Muizzu has stated that the Administration remains committed to freeing the Maldivian people from the burden of inherited debt, while pursuing sustainable solutions to ensure stronger and more resilient financial outcomes for the nation. He noted that the country’s official gross reserves have surpassed USD 1.13 billion, the highest level recorded in Maldivian history.
The President made these remarks this morning whilst delivering the Presidential Address at the first sitting of the first session of the 20th People's Majlis for the year.
He stated that state revenue and grants in 2025 increased by 12 per cent compared to 2024. Based on current economic performance and growth trends, the President projected that total State revenue and grants for 2026 would reach MVR 40.4 billion.
In his address, President Dr Muizzu outlined key strategic measures undertaken by the Administration to address the inherited debt burden, including efforts to restructure sovereign debt, secure more favourable repayment terms, and strengthen confidence among international investors and credit rating agencies.
Highlighting improvements in external earnings, the President said the Maldives generated USD 1.2 billion in foreign currency revenue in 2025. He noted that this growth enabled increased allocations to the Maldives Sovereign Development Fund (SDF) and contributed to the strengthening of official reserves. He further stated that, following the implementation of new foreign exchange regulations, USD 492 million was exchanged through the Maldives Monetary Authority (MMA) between January and December 2025.
Addressing fiscal discipline, the President noted that the 2025 State Budget was the first budget passed by the current People’s Majlis, and that the fiscal year concluded without the need for a supplementary budget – a milestone achieved for the first time in five years. He added that while the average annual budget deficit had exceeded 9 per cent of GDP over the previous five years, it has now been reduced, with the 2025 deficit projected at 5 per cent of GDP. The President also stated that the budget remained in surplus for the first 40 weeks of the year.
For 2026, President Dr Muizzu confirmed that, in addition to projected state revenue, USD 100 million has been secured as non-tax revenue, which is expected to be received within the next 45 days.
The President emphasised that strengthening the Maldives’ economic resilience would also contribute to regional security and stability. In his third Presidential Address to the People’s Majlis, he underscored the Administration’s efforts to steer the economy away from the precarious financial position inherited at the start of his term, highlighting both the progress achieved and the foundations laid for long-term economic stability.