The government has identified repaying the Maldives' external debt as its highest economic priority, saying meeting upcoming obligations is essential to maintaining financial stability and preventing the country from defaulting.

Speaking during the latest edition of the Presser with the Spox series, Chief Government Spokesperson Mohamed Hussain Shareef (Mundhu) said the country continues to face economic challenges, with both external and domestic debt remaining key concerns.

He said while reducing domestic debt is also important, the government will continue to protect essential public services throughout its economic reform efforts.

According to Shareef, the administration will not reduce spending in ways that affect critical services such as fuel imports, public sector salaries, healthcare, or other basic needs.

He said the government plans to address domestic debt gradually while giving priority to external debt obligations.

The spokesperson also noted that although international financial institutions have recommended deeper spending cuts, the government has chosen to maintain public services while working to improve the country's financial position.

He said the administration has made steady progress over the past two years and remains confident that all major external debt payments due in September will be met.

Shareef added that international financial institutions have also recognized improvements in the Maldives' fiscal position.

He said the government has repaid approximately USD 1.29 billion in debt over the past two and a half years, reducing the country's external debt to 44.5 percent of gross domestic product as of the end of May.