The year 2025 marked a historic milestone in the Maldives’ fiscal history, as the state budget saw its highest-ever expenditure on debt servicing. A total of MVR 5.1 billion was utilized for loan repayments, with MVR 4.6 billion of this amount specifically covering interest payments. This reflects a substantial increase of 121.7% compared to the figures recorded in 2024.
According to data released by the Ministry of Finance, fiscal consolidation measures—aimed at controlling state expenditure and enhancing revenue—have successfully reduced the budget deficit from MVR 13.1 billion to MVR 3.5 billion. The Ministry also highlighted that, for the first time in recent history, the primary balance concluded with a surplus of MVR 1.2 billion.
The government’s prudent debt management policies have significantly bolstered investor confidence, resulting in an appreciation of the value of Maldivian Sukuks in the international financial market. Furthermore, MVR 9.3 billion has been allocated in this year’s budget for the settlement of maturing Sukuks.
