The government has also projected a decline in the country's reserves next year as well.

According to the government's budget book for the fiscal year 2019-20, the reserves will remain at USD 606.3 million in the next financial year. That's $32 million less than expected by the end of the year.

Here's how the reserves have been in the last few years:

*By the end of 2020 - $985 million

*End of 2021 - $805 million

*Expected by the end of the year - $773 million

*Forecast for the next financial year - $606.3 million

If global commodity prices are subdued and the country's revenues are not increased, the next year's reserves are likely to be even lower.

The nation's economy and the state's finances, which rely on exports, are in a critical crisis as a result of rising global oil and commodity prices. However, President Solih has pledged earlier to increase the reserves to $1 billion by the end of his presidency.

The International Monetary Fund (IMF) had earlier warned that the economy is at risk of falling foreign exchange reserves and rising debt.

An IMF delegation visited the Maldives in June to assess the country's economic situation. In September, a statement was issued expressing the delegation's findings and views. The statement also provided several recommendations to the government.

In its report, the IMF noted that even if the country's economic growth continues to accelerate, foreign exchange reserves will shrink and noted the country as a high-risk nation.

The report also noted that the country's inflation rate is expected to rise to 3.1 per cent this fiscal on the back of rising global oil and commodity prices. It has also been pointed out that rising commodity prices will increase the cost of subsidies and more will have to be spent with next year's presidential election.

The IMF report also highlighted the threat of a decline in the number of tourists visiting the Maldives due to the decline in the economies of the countries with the highest number of tourists to the Maldives due to the global economic slowdown.