Maldives Monetary Authority (MMA) has said increased foreign currency exchange through banks has played a significant role in the government’s repayment of its sukuk.

The central bank said foreign exchange flows from tourism businesses facilitated under the Foreign Exchange Act have helped boost dollar earnings and supported debt servicing.

Ministry of Finance announced yesterday that the government had repaid the sukuk in full, amounting to USD 524.68 million (around MVR 8 billion).

The repayment was made using official reserves as well as the Sovereign Development Fund (SDF).

MMA said it had implemented strong policies to improve foreign exchange liquidity, including the Foreign Exchange Act introduced in 2024, which has strengthened the country’s foreign currency system and supported debt repayments.

The authority noted that these gains were achieved through coordinated efforts with the government and state institutions.

MMA said it will continue working with relevant agencies to further strengthen reserves and implement necessary policies.

Government reserves stood at MVR 1.3 billion at the end of March.