Maldives’ reserves projected to reach $903 million in 2026

The Maldives’ official reserves are projected to reach USD 903.7 million next year, Finance Minister Moosa Zameer said on Thursday.

Presenting the 2026 state budget to Parliament, Zameer said official reserves stood at USD 673.9 million at the end of last year and are expected to rise to USD 848.6 million by the end of this year.

The total budget for 2026 amounts to MVR 64 billion, with MVR 9.3 billion allocated for the repayment of sukuk and bonds. Recurrent expenditure accounts for 62 percent of total spending.

Zameer said the government expects to raise MVR 26.3 billion next year to manage debt repayments and the financing of the budget deficit. Of this amount, MVR 12.9 billion will go towards debt servicing, while MVR 8.8 billion will be required to finance the deficit.

Funding sources include MVR 16.8 billion from foreign loans, sukuk, bonds, and multilateral financing.

Zameer said the Sovereign Development Fund (SDF) has been restructured into a dollar-managed fund to support sukuk repayments under a policy of responsible debt management.

“The fund currently holds more than USD 100 million in cash, reserved primarily for debt repayment. Refinanceable debt will be repaid at a pace determined by deposits into the Sovereign Development Fund,” he said.

The minister added that USD 450 million (MVR 6.9 billion) has been secured from foreign sources for sukuk refinancing, while an additional USD 300 million (MVR 4.6 billion) in budget support is expected from agreements reached during President Muizzu’s official visits to partner countries.

Zameer also stated that domestic financial institutions are expected to raise around MVR 5 billion. A portion of the Sovereign Development Fund will be used to settle state debt, with MVR 4.2 billion earmarked for this purpose.