Maldives Builds Strong Economic Shield as Official Reserves Hit $1.13 Billion, Securing Essential Imports and Stability: President

President Dr Mohamed Muizzu has announced that the official gross reserves of the Maldives have surpassed USD 1.13 billion, marking the highest level in the country’s history.

The President made the remarks this morning while delivering his Presidential Address at the first sitting of the first session of the 20th People’s Majlis for the year.

He said the current Administration remains committed to freeing the Maldivian people from the burden of legacy debt and is pursuing sustainable solutions to ensure stronger and more resilient financial outcomes.

According to the President, State revenue and grants in 2025 increased by 12 per cent compared to 2024. Based on current economic performance and growth trends, he projected that total State revenue and grants in 2026 would reach MVR 40.4 billion.

In his address, President Muizzu outlined key measures taken to address inherited debt, including restructuring sovereign obligations, securing more favourable repayment terms, and strengthening confidence among international investors and credit rating agencies.

Highlighting improvements in external earnings, he said the country generated USD 1.2 billion in foreign currency revenue in 2025. This growth enabled increased allocations to the Maldives Sovereign Development Fund and contributed to strengthening official reserves.

He also noted that, following the implementation of new foreign exchange regulations, USD 492 million was exchanged through the Maldives Monetary Authority between January and December 2025.

Addressing fiscal discipline, the President said the 2025 State Budget was the first passed by the current Majlis and that the fiscal year ended without the need for a supplementary budget — a milestone achieved for the first time in five years.

He added that while the average annual budget deficit had exceeded 9 per cent of GDP over the past five years, it has now been reduced, with the 2025 deficit projected at 5 per cent. The budget, he said, also remained in surplus for the first 40 weeks of the year.

For 2026, President Muizzu confirmed that, in addition to projected revenue, USD 100 million has been secured as non-tax income, expected to be received within the next 45 days.

The President emphasised that strengthening economic resilience would also contribute to regional security and stability. In his third Presidential Address to the Majlis, he highlighted efforts to steer the economy away from the fragile financial position inherited at the start of his term, while laying the foundations for long-term stability.