Govt used $350 million from SDF, $175 million from reserves to repay sukuk

The government used USD 350 million from the Sovereign Development Fund (SDF) and USD 175 million from state reserves to settle the USD 500 million sovereign sukuk issued in 2021, Minister of Finance and Planning Hassan Zareer said on Sunday evening.

The government completed repayment of the sukuk, which was issued in the international financial market, on 2 April 2026. Although the authorities had previously disclosed that the repayment was financed through the SDF and reserves, the breakdown of the funding had not been made public.

Speaking at the Ahaa forum, organised jointly by the President's Office and state broadcaster Public Service Media (PSM), the minister said the government had spent a total of USD 1.4 billion on debt repayments during its two and a half years in office, as of 8 October.

"Of those years, this has been the most difficult in terms of debt repayments. Looking at the loan repayments currently due, the progress we have made should help ease the burden in the coming period," the minister said.

The total amount required to settle the sukuk was USD 525 million, comprising the USD 500 million principal and an additional USD 25 million payment.

In addition to the sukuk repayment, the government also settled the remaining USD 50 million of a USD 150 million facility obtained from the State Bank of India (SBI) during the year.

The Ministry of Finance has previously said the final SBI repayment was financed through the SDF.

The minister said the government had entered 2026 expecting substantial economic progress, with state revenue increasing by 10 per cent in the first quarter compared with the corresponding period of the previous year.

However, he acknowledged that the conflict in the Middle East had affected the Maldives through changes in oil prices, logistics and international travel.