Government Strengthens Fiscal Position with USD 200m Usable Reserves, USD 100m in SDF

The Maldives’ usable reserves have surpassed USD 200 million by the end of September 2025, while the Sovereign Development Fund (SDF) continues to maintain a liquid balance of over USD 100 million, according to a senior official from the Ministry of Finance and Planning.

The official, who spoke on condition of anonymity, said the figures reflect the Government’s progress in strengthening the country’s external position through fiscal reforms and disciplined policies, even as the global economy faces turbulence.

The announcement comes on the heels of President Dr. Mohamed Muizzu’s remarks on X, where he reiterated his administration’s commitment to restoring fiscal stability. The President noted that when his government took office on 17 November 2023, it faced thousands of unpaid bills owed to local businesses and State-Owned Enterprises. He stated that all such arrears would be cleared within five weeks, describing it as a “huge achievement” in efforts to revive the economy.

The Ministry of Finance and Planning emphasized that the government remains committed to meeting its financial obligations while advancing structural reforms designed to safeguard long-term stability and growth. Officials highlighted that the progress on reserves and the SDF reflects broader efforts to improve fiscal discipline, reassure creditors, and enhance investor confidence.

The Sovereign Development Fund, established to provide a financial buffer against external shocks and future debt repayments, has been a key element in the government’s fiscal strategy. With more than USD 100 million in liquid assets, the fund is viewed as critical in supporting the Maldives’ ability to withstand economic challenges while pursuing development goals.

Despite external pressures such as fluctuating global fuel prices and risks to tourism revenues, the government maintains that its fiscal reform agenda is starting to yield results. Analysts note that continued improvements in reserves and the SDF will be crucial in ensuring financial resilience and meeting future obligations without jeopardizing development priorities.