Maldivian government spent USD 596.6 million on debt repayments during the first six months of the year, according to the latest Monthly Fiscal Development Report released by the Ministry of Finance and Public Enterprises.

The figure represents a 178 percent increase compared with the USD 214.0 million repaid during the same period last year, reflecting a significant rise in debt servicing during the first half of 2026.

The ministry also projects that total debt repayments for the year will reach USD 836.6 million.

Despite the substantial increase in repayments over the six-month period, debt servicing costs eased in June.

Government spending on debt repayments totaled USD 18.7 million during the month, down 58 percent from USD 45.2 million recorded in June last year.

The government has also relied on the Sovereign Development Fund (SDF) to settle major loan obligations this year.

The fund was established to help finance the repayment of large development and emergency-related loans while providing a financial buffer against economic shocks.

It operates separately from the foreign currency reserves managed by the Maldives Monetary Authority (MMA).

Created in 2016, the SDF is financed through three government revenue streams, proceeds from the Airport Development Fee collected from departing passengers, dividends from the government's shareholding in Maldives Airports Company Limited (MACL), and additional revenue generated through higher charges for selected airport services.

The latest fiscal data highlights the government's continued focus on meeting debt obligations while utilizing dedicated financial reserves established to support long-term fiscal stability.