India has approved the first rollover of its ₹3,000 crore currency swap facility for the Maldives, reinforcing its financial support to the island nation and underscoring the importance of bilateral economic cooperation.

The rollover will take effect from 23 October 2026 after the Maldivian government formally requested an extension of the arrangement. Announcing the decision, Ministry of External Affairs spokesperson Randhir Jaiswal said the measure reflects the close development partnership between the two countries and is expected to strengthen the Maldives' financial stability.

Jaiswal noted that the currency swap arrangement was originally established under an agreement signed in October 2024 and described the rollover as another step in supporting the economic resilience of the Maldives.

The facility falls under the Framework on Currency Swap Arrangement for SAARC countries agreed between the Reserve Bank of India and the Maldives Monetary Authority during Maldivian President Mohamed Muizzu’s State Visit to New Delhi in October 2024.

The initial drawdown of the Rs 30 billion facility was provided to the Maldives on 23 April 2026. The arrangement operates under the 2024-27 framework, which offers concessional terms and favourable interest rates designed to ease liquidity pressures and support macroeconomic stability.

Since the launch of the currency swap framework in 2012, the Reserve Bank of India has provided cumulative swap assistance worth more than $1.1 billion to the Maldives, making it one of the most significant financial support mechanisms extended by New Delhi to the Indian Ocean nation.

India has also supported the Maldives through sovereign debt investments. These include subscriptions to long-term Treasury bonds valued at $250 million and $100 million, as well as three Treasury bills worth $150 million that have since been settled. The Indian government additionally paid $42.8 million towards the interest incurred on those instruments.

The currency swap facility, Treasury bond investments and Treasury bill support have collectively played an important role in sustaining financial stability in the Maldives at a time when the country continues to focus on strengthening its fiscal position and managing external financing requirements.

The latest rollover also reflects India’s broader strategic commitment to the Maldives under its Neighbourhood First policy and the MAHASAGAR vision, or Mutual and Holistic Advancement for Security and Growth Across Regions.

New Delhi has reiterated its intention to deepen economic and maritime security cooperation with Malé through the implementation of the Joint Vision for a Comprehensive Economic and Maritime Security Partnership adopted during President Muizzu’s visit to India in October 2024.

ANI