India confirms USD 400m swap facility extended during Muizzu’s visit is fully exhausted

India's Foreign Secretary has stated that the Maldives is facing financial difficulties and has fully utilized the USD 400 million swap facility provided by the government of India as assistance.

Speaking at a press conference held by the Ministry of External Affairs of India (MEA) on Tuesday, Foreign Secretary Vikram Misri said that India continues to provide assistance to help the Maldives overcome its financial challenges.

The assistance we provided has improved the Maldives' foreign currency situation. This has been noted by international financial institutions such as the IMF."

Vikram Misri, India's Foreign Secretary

Misri stated that, to his knowledge, the USD 400 million currency swap facility previously extended by India as financial assistance has been almost fully utilized. He added that a separate INR 30 billion swap line is currently in use.

Prime Minister Narendra Modi's visit to the Maldives, at the invitation of President Muizzu who campaigned to come to power under the "India Out" slogan, is scheduled for July 25 – 26.

Muizzu made an official visit to India in October 2024. Prior to that, Muizzu also visited India to attend Prime Minister Modi's swearing-in ceremony. During the Prime Minister's visit, he is set to meet with President Muizzu to discuss important matters for both countries. He will also inaugurate some development projects.

India remains one of the Maldives’ largest trading partners, with bilateral trade currently nearing USD 500 million.

Misri also stated that discussions were ongoing for a Free Trade Agreement (FTA) and an investment treaty between the two countries, adding that they were also exploring opportunities for cooperation in new areas such as renewable energy and fisheries.

Presently, the most significant project underway with Indian assistance is the Greater Malé Connectivity Project. The project is expected to bring significant changes to the urban development of the Greater Malé region. The project will connect four islands.

The Foreign Secretary stated that road construction, airport development, and a fish processing unit project are also underway and that based on the Maldives' priorities, the government of India has also eased the difficulties faced by the Maldives by assisting with social housing projects.

According to the Foreign Secretary, significant work on the Maldives National Defence Force (MNDF) Building Project has also been completed. The project will be announced in the near future.

During President Muizzu's visit to India in 2024, a currency swap arrangement was reached. This included a USD 400 million and INR 30 billion swap arrangement. In addition to this, Misri said that the State Bank of India continues to invest in Maldivian Treasury bills.