The Ministry of Finance of the Maldives has stated that the full repayment of a USD 500 million Sukuk highlights the effectiveness of the government’s recent fiscal and monetary reforms.

Providing an update on the country’s financial position, the Ministry noted that the overall fiscal outlook has improved, supported by increased tax revenues and the successful settlement of the Sukuk issued in 2021.

According to the Ministry, total state revenue and grants reached MVR 12.4 billion as of April 2, marking an 11.6 percent rise compared to MVR 11.1 billion recorded during the same period last year.

The state budget also registered a surplus of MVR 2.3 billion this year, up from MVR 1.8 billion in the corresponding period of 2025.

The Ministry highlighted that the repayment of the USD 500 million Sukuk, along with a coupon payment of USD 24.68 million, stands as the most significant financial milestone during this period.

These obligations were settled through the Sovereign Development Fund and the country’s foreign currency reserves.

Officials described the repayment as a key step in strengthening debt management and improving the Maldives’ capacity to meet its external financial commitments.

The Ministry further emphasised that the achievement reflects the impact of policy measures introduced since 2024 to enhance foreign currency inflows and stabilise the external sector.

These include revenue-focused reforms and monetary policy adjustments, such as the enforcement of the Foreign Exchange Act and regulations requiring the conversion of foreign currency earnings.

The government stated that these strategies have contributed to an increase in official reserves by the end of March and enabled the accumulation of foreign currency in the Sovereign Development Fund, ultimately facilitating the successful repayment of the Sukuk.