India to consider more financial support to Maldives amid debt repayments

India will explore further options to support the Maldives in addressing its financial challenges, according to the Indian Ministry of External Affairs. The Maldives is expected to repay a significant portion of its foreign debt this year and in the next.

Indian Prime Minister Narendra Modi is scheduled to visit the Maldives on Friday, the ministry announced at a press conference held Tuesday.

During the briefing, Indian journalists inquired about the possibility of further financial assistance to improve the Maldives’ economic situation.

Foreign Secretary Vikram Misri said that recent assistance from India had contributed to an improvement in the Maldives’ foreign exchange reserves. He referred to a recent currency swap agreement valued at USD 400 million and another amount of INR 30 billion (approximately USD 357 million) extended by India. Misri noted that the amounts made available through the swap arrangements have been nearly utilised.

He added that India, as a longstanding partner, would continue to extend support to the Maldives.

“We will assess what more can be done. So far, India has consistently extended support to help stabilise the financial position of the Maldives,” Misri said.

The Prime Minister is expected to announce further areas of assistance and cooperation during his upcoming visit. Misri stated that it is important to pay attention to the developments during the visit.

He also highlighted the following points:

When asked about the state of bilateral relations following past tensions, Misri said that fluctuations are a natural part of international relations.

“There will always be issues that may affect or challenge a relationship. Both sides work to manage and maintain the relationship when such issues arise,” he said.