Maldives unlikely to face trouble repaying next years "major debt": Experts

Maldives is unlikely to face difficulties in repaying the USD 500 million in sovereign debt due next year, given the country’s current financial position, according to several financial experts.

Speaking at a panel discussion during the Maldives Accountants Forum 2025, organized by the Institute of Chartered Accountants of the Maldives (CA Maldives), Bank of Maldives (BML) Strategic Consultant Abdulla Hassan said in his personal capacity that the country has the capacity to meet its repayment obligations.

He noted that the Maldives Monetary Authority (MMA) currently holds more than USD 800 million in reserves, while the Sovereign Development Fund (SDF) has a “three-digit” balance, citing figures from the Finance Ministry.

Responding to a question comparing Maldives’ situation to Sri Lanka’s debt crisis, Abdulla said that the government had already arranged to refinance USD 200–300 million in maturing sukuk and bonds. He added that the USD 500 million sukuk due in April 2026 would also be refinanced, suggesting that the Finance Ministry had “many plans” to manage the repayments.

Maldives Islamic Bank (MIB) Chief Financial Officer Ali Wasif echoed this view, saying he was confident the government would manage the upcoming payments.

“The market sukuk is USD 500 million, and most of the remaining debt is bilateral,” Wasif said, speaking in his personal capacity.

“These bilateral arrangements are being restructured and rescheduled, and with the help of our partners, I believe we’ll reach the shore of safety.”

Confidence in the government’s debt management has also been echoed by Mahibadhoo MP Ahmed Thoriq, who said last week that fears of default had eased.

During President Dr Mohamed Muizzu’s recent visit to Alifu Dhaalu Atoll, Mahibadhoo MP Ahmed Thoriq said that both former presidents, Abdulla Yameen and Ibrahim Mohamed Solih, had previously claimed that the government would struggle to repay the USD 500 million debt and risk going into default.

“However, after successful discussions with neighbouring countries, especially India and China, a large part of the debt owed to them has now been postponed,” Thoriq said.