Maldives’ efforts to systematically reduce and settle state debt are beginning to strengthen investor confidence and improve the country’s fiscal outlook, Minister of Finance and Public Enterprises Hassan Zareer has told Parliament.

Responding to a question from Fuvahmulah South MP Ibrahim Hussein, Minister Zareer highlighted the Government’s repayment of a USD 500 million sukuk issued in 2021 under the previous administration.

The payment, completed in April, represented the largest single debt repayment made by the Maldives to date.

The Government settled the full principal amount along with a USD 24.68 million coupon payment without taking on additional borrowing.

Minister Zareer said the repayment formed part of broader efforts to improve the country’s debt position.

Since the current administration assumed office, the Maldives has reduced its debt by a cumulative USD 616 million.

The Government has also allocated USD 837 million in this year’s budget for debt servicing, reflecting its continued focus on meeting financial obligations and managing state liabilities.

According to the minister, the Government’s approach to debt management and repayment has helped strengthen confidence among international investors.

He said prospective investors have been engaging with government officials and expressing a positive outlook on investment opportunities in the Maldives.

The Finance Ministry believes that maintaining fiscal discipline and meeting debt obligations as scheduled will continue to strengthen the country’s financial standing and support efforts to attract major investments.