The Maldives' official foreign exchange reserves have declined by 46 percent following a substantial debt repayment in April, according to data released by the Maldives Monetary Authority (MMA).
Official reserves stood at USD 717.9 million as of April, down from USD 1.33 billion at the end of March, marking a significant monthly contraction. The dramatic decline was primarily attributed to the government's repayment of USD 924 million in outstanding debts during the single month, representing one of the largest debt servicing exercises undertaken by a government in recent history.
The debt settled in April comprised two major obligations, according to official records. These included a USD 500 million sukuk bond issued by the then government in 2021 and a USD 400 million currency swap facility signed during the President Dr Mohamed Muizzu’s first visit to India in 2024. The combined debt, totaling around USD 1 billion and coming due this year, was repaid through a combination of the Sovereign Development Fund and official foreign exchange reserves.
Despite the sharp reduction in overall reserves, the government has emphasised that sufficient resources remain to meet essential state expenditures. Usable reserves—calculated by subtracting foreign exchange obligations due within the coming year from total official reserves and qualifying investments—stood at USD 244.2 million as of April.
This figure represents a 40 percent decrease from the USD 409 million in usable reserves recorded in March, reflecting both the debt outflow and the methodological adjustment in calculating available liquid assets.
The government has characterised the debt repayment effort as proceeding smoothly and without operational difficulties. Authorities have further noted that no additional debts were taken to facilitate these repayments, and that collateralised state assets are currently being recovered as part of the process. The administration has reaffirmed its commitment to seek concessions on debt payments and related financial matters through its diplomatic engagements with foreign partners.