The Sovereign Development Fund (SDF) - established by the former government in 2017 to finance the repayment of national debt - has now reached a total of MVR 7.4 billion.
As per the 2024 Budget Proposal, SDF has received MVR 4 billion as airport development fee by the end of September. It also received MVR 1.4 billion from cross subsidy projects and MVR 2 billion through other charges.
MVR 5.7 billion from the funds in SDF is invested in T-bills. MVR 1.7 billion has been spent on other investments.
SDF had MVR 6.4 billion at the end of 2022. As per the budget, MVR 2.3 billion will be deposited to SDF by the end of the year. And an additional MVR 1.2 billion will be deposited in the coming year.
As per the budget, MVR 3.8 billion from the SDF funds will be used for debt repayment.
In 2025, MVR 8.2 billion needs to be spent in debt repayment. In 2025, the government will open up for sale of a bond or sukuk, together with the SDF funds. In addition to this, 2026 presents the need for direct repayment of a large debt of MVR 9.8 billion. The government plans to sell bonds or sukuk in addition to the MVR 3.8 billion from SDF funds to refinance this loan.
SDF funds include USD 125 million. This amount available in dollars makes up about twenty five percent. The government aims to raise the funds in SDF to MVR 9.7 billion by the end of the coming year.
The state debt is currently at MVR 120 billion.
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