The government has successfully redeemed a USD 500 million Sukuk, marking a significant step in improving the Maldives’ fiscal position and reducing its debt burden.

In a statement released on Thursday night, the Ministry of Finance confirmed that a total of USD 524.68 million was disbursed for the settlement.

This includes the USD 500 million principal and an additional USD 24.68 million in profit payments.

The Ministry noted that the repayment has contributed to a meaningful decline in the national debt-to-GDP ratio.

The Sukuk, issued in 2021 by the previous administration, was used to refinance the USD 250 million “Sunny Side Bond.”

According to the Ministry, the instrument carried a relatively high rate compared to market conditions at the time and lacked a comprehensive repayment framework.

Officials stated that the current administration adopted strategic fiscal measures to ensure the obligation could be met without undermining economic stability or public finances.

By the end of March, the Sovereign Development Fund (SDF) had grown to USD 350 million, while official gross international reserves reached a record USD 1.3 billion.

Following the repayment, the government’s immediate focus will be on maintaining the uninterrupted supply of essential goods and services, including fuel and pharmaceuticals, while sustaining economic activity.

The Ministry added that ongoing engagement with international financial institutions is helping secure the financial support required for these priorities.

It also confirmed that negotiations with the Abu Dhabi Fund for Development have been successfully concluded to roll over a USD 100 million bond due at the end of the month.