India has granted a one-year extension on a USD 50 million Treasury Bill issued by the Maldives government, offering crucial liquidity support as the island nation navigates economic and fiscal reforms. The Treasury Bill, which matured on 12 May 2025, has been rolled over through the State Bank of India (SBI), Malé, under a government-to-government arrangement.
This move continues a pattern of financial cooperation between the two countries. The Government of India has facilitated similar support since 2019, including multiple interest-free Treasury Bills subscribed by SBI and rolled over annually. The assistance is part of a broader set of financial mechanisms extended by India, which also includes a currency swap arrangement to bolster the Maldives’ foreign reserves.
According to the Ministry of Foreign Affairs, the extension comes at a time when the Maldives is undertaking wide-ranging economic and fiscal adjustments. The deferral is seen as easing near-term liquidity pressures and reflects sustained diplomatic engagement between the two neighbours.
Foreign Minister Dr Abdulla Khaleel acknowledged the gesture publicly on platform X, thanking Indian External Affairs Minister Dr S. Jaishankar for what he described as continued and timely support. Officials reiterated that such cooperation underscores the long-standing bilateral partnership and shared interest in regional stability and prosperity.
Of the original USD 200 million budgetary support extended by India during the administration of former President Ibrahim Mohamed Solih, USD 100 million remains outstanding. India has already waived USD 50 million and rolled over a separate USD 50 million T-bill last September, which will now mature in September 2025. The outstanding debt is being repaid in two instalments annually.
The Maldivian government has expressed its appreciation for the continued support, noting that such arrangements remain vital as it works toward improving macroeconomic stability and advancing key reforms.
