The Maldives has fully repaid the $150 million it owed India through a loan facility provided by the State Bank of India (SBI) in 2019. The country cleared the final $50 million instalment on September 17, completing the repayment after several extensions over the past two years.
Maldives Finance Minister Hassan Zareer said the repayment was completed under the leadership of President Mohamed Muizzu. He said the government had planned its debt payments in advance and continued making contributions to the Sovereign Development Fund.
The SBI Treasury Bill was originally issued in 2019 as an emergency measure to support the Maldivian government’s budget. The facility was initially worth around $200 million, with $50 million later treated as a grant that did not need to be repaid.
The Muizzu government made its first repayment of $50 million in January 2024. India then extended the repayment deadline several times, including in May and September 2024 and through 2025.
In May 2026, the Maldives repaid another $50 million, reducing the outstanding amount to $50 million. The final instalment was paid on September 17, bringing the total repayment to $150 million.
The Maldives has also been working to reduce its external debt. Its guaranteed external debt fell to around $3.59 billion in the second quarter of 2026, compared with $4.05 billion at the end of fiscal 2025.
The Maldivian Finance Ministry said it had strengthened its financial planning by making regular deposits into the Sovereign Development Fund, arranging funds ahead of repayment deadlines and maintaining discussions with international financial institutions and development partners.
The ministry also said foreign exchange arrangements were in place to ensure continued imports of essential goods such as fuel, food and medicines after the repayment.
However, the latest payment is expected to put further pressure on the Maldives’ foreign exchange reserves. The country had $643.8 million in reserves at the end of August, according to the Maldives Monetary Authority. The reserves are expected to fall below $600 million following the latest repayment.
The Maldives depends heavily on imports, while its exports remain relatively small. The country imported goods worth about $339.26 million in July 2026, while exports stood at around $36.7 million, highlighting the large trade gap.
Foreign exchange reserves had reached around $1.3 billion in March 2026 but fell to $643.8 million by August. Higher global oil prices and rising import costs have added to the pressure on the country’s foreign exchange position.
