President Dr Mohamed Muizzu has said the Maldives has accumulated sufficient funds to meet its upcoming USD 500 million sukuk repayment, despite mounting external pressures linked to conflict in the Gulf and a heavy debt calendar this year.
Speaking at a press briefing on Monday morning, President Muizzu stated that the government has secured USD 650 million in preparation for the sukuk maturing on April 8. Of this amount, USD 320 million is held in the Sovereign Development Fund, while USD 330 million is available within usable reserves.
“In short, we have enough money to repay the sukuk even if we need to make the payment today itself,” he said.
The April maturity forms part of a broader USD 1.1 billion in external debt repayments due this year, which includes the USD 500 million sukuk and an additional USD 100 million payment scheduled within the same month. The scale of repayments has drawn attention from analysts, particularly as the country navigates elevated global uncertainty.
President Muizzu acknowledged that the ongoing conflict in the Gulf, involving the United States, Israel and Iran, presents potential risks to the Maldivian economy. He identified three key areas of exposure: tourism arrivals, oil imports and food imports. Given the Maldives’ dependence on tourism revenues and imported goods, any prolonged disruption to global trade or travel flows could have secondary effects on fiscal and external balances.
He said the government is taking measures to manage the situation and maintain economic stability, adding that the country remains financially capable of honouring its debt obligations despite the current geopolitical climate.
With USD 650 million reportedly set aside against the USD 500 million sukuk, the President indicated that the Maldives would be able to meet the maturity while retaining additional funds.
