Male: The Maldives, facing mounting economic pressure, has once again sought financial assistance from India. President Mohamed Muizzu’s government has requested an extension of the currency swap arrangement with India to ease its foreign exchange shortage and rising debt repayment burden.
According to reports, the Maldives is currently struggling with heavy external debt, declining foreign currency reserves, and a weakening economy. The tourism sector, a key pillar of the country’s economy, has been affected by ongoing tensions in West Asia, while higher fuel prices have added to government expenses.
Sources said Malé has asked New Delhi to continue the currency swap support previously provided by India. However, financial experts note that regulatory conditions such as mandatory withdrawal intervals and rollover limits could make fresh assistance more complex.
India has previously extended significant support to the island nation. In October 2024, India provided a $400 million currency swap facility. It also extended the tenure of two interest-free treasury bills in 2025, offering temporary fiscal relief.
Credit rating agencies have also expressed concern over the Maldives’ financial outlook. Reports indicate that the country faced debt obligations of nearly $1 billion in April 2026, including Sukuk bond repayments and liabilities linked to the Indian swap arrangement.
Analysts believe that without further financial relief, the Maldives could face increasing short-term economic stress in the coming months.Maldives Requests India to Extend Currency Swap Support