According to recent statistics from the Ministry of Finance, the government has transferred over USD 32 million (MVR 500 million) to the Sovereign Development Fund (SDF) so far in 2023.
The ministry recently confirmed that a total of USD 36 million (MVR 550 million) has been transferred to the fund so far in 2023. The projected total for the year in the state budget is USD 56 million (MVR 870 million). As of the most recent review date, the government has transferred 63 percent of the budgeted total to the fund.
At the end of 2022, the government had transferred an annual total of USD 53 million (MVR 820 million) to the SDF. It is expected to observe an increase of USD 3.2 million (MVR 50 million) in transfers to the fund this year.
In January 2022, the ministry stopped publishing details of the Sovereign Development Fund on its weekly and monthly fiscal development reports. The reason cited for this decision was to produce a separate and dedicated report on the fund.
As of January 2023, the total SDF stood at USD 415 million (MVR 6.4 billion), with its usable balance at USD 117 million (MVR 1.8 billion). However, after that date, the details of the SDF were no longer published on the fiscal development reports.
The Sovereign Development Fund was established in 2017 during the administration of former President Abdulla Yameen. Its primary purpose was to manage state expenditure during emergencies and economic crises, as well as to fund large-scale development projects amid budget constraints.
The fund exists completely separate from the Maldives Monetary Authority (MMA)-led reserve and was established as a savings fund for the state. Presently, the government allocates 70 percent of the SDF budget to invest in treasury bills (T-Bills), while the remaining portion is invested as fixed deposits in commercial banks.
Initially, the fund was managed by a special committee in collaboration with the central bank. However, all discretionary authority of the SDF was later transferred under the Ministry of Finance.
Statistics also confirm that 90 percent of the fiscal reserve is composed of Maldivian Rufiyaa, with US Dollars accounting for just 10 percent of it.
The fund previously had a significant share of US Dollars, which depleted after it was exchanged in 2020 amid foreign currency constraints.
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