India’s Ministry of External Affairs has highlighted the scale of financial support extended to the Maldives, confirming that New Delhi absorbed approximately ₹375 crore in interest payments over five years to ease Malé’s debt burden. This came as the Maldives fully settled its ₹1,250 crore Treasury bill facility subscribed by the State Bank of India.

MEA Spokesperson Randhir Jaiswal explained that while the Maldivian authorities repaid the principal amount, India bore the entire interest cost. He noted that the total interest settlement amounted to nearly ₹375 crore, underscoring India’s role in backstopping Maldivian finances.

The Treasury bill facility, subscribed in 2019, was extended six times to provide liquidity support. The final tranche of ₹417 crore was repaid on 17 September 2026, completing the settlement of the entire ₹1,250 crore facility. India’s prolonged backstopping and periodic rollovers were described as a cornerstone of its Neighbourhood First and development partnership policies.

India continues to reinforce Maldivian financial stability through additional mechanisms. These include an ₹30,000 crore currency swap facility and SBI’s subscription of $350 million worth of Treasury bonds, equivalent to nearly ₹2,917 crore, maturing between 2029 and 2030. Such instruments are designed to strengthen reserves and ensure fiscal resilience.

The MEA also reaffirmed India’s commitment to maintaining essential supplies and supporting development projects in the Maldives. Jaiswal emphasised that financial cooperation is complemented by ongoing engagements in infrastructure, supplies, and broader development partnerships.

On the Maldivian side, the Finance Ministry confirmed that the debt obligations were honoured on schedule. The first repayment of ₹417 crore was made in January 2024, followed by another ₹417 crore in May 2026, and the final ₹417 crore in September 2026. Officials stressed that the current administration has consistently honoured commitments secured by the previous government.

Concerns regarding foreign exchange constraints were dismissed. The Maldives Monetary Authority reported official reserves of approximately $664 million, equivalent to nearly ₹5,540 crore, at the end of August 2026. Authorities assured that debt servicing would not disrupt the importation of essential supplies such as fuel, food, and pharmaceuticals.

The Finance Ministry highlighted that safeguarding uninterrupted supply chains remains a priority. It stated that arrangements are in place to ensure continued availability of foreign currency for essential imports, rejecting claims that debt repayment could constrain supplies.

The ministry also outlined its long-term fiscal strategy, which includes preparing for debt obligations well in advance and accumulating funds in the Sovereign Development Fund. This approach aims to sustain economic development, strengthen reserves, and secure essential goods and services for the public.

Officials further noted that discussions with international financial institutions, bilateral partners, and supporting organisations are progressing positively. These engagements are expected to solidify the Maldives’ foreign currency reserve position and enhance financial stability in the years ahead.

ANI