Economy is Robust; Sukuk Payments Can Be Met Even Now: President Muizzu
President Muizzu announced that the Maldives' official reserves have reached $1.27 billion, confirming that funds have already been secured for the $500 million sukuk repayment due in 2026. Highlighting that the Sovereign Development Fund and usable reserves now total $650 million, the President maintained that the national economy remains robust; however, despite these assurances, the public continues to face a soaring cost of living and rising commodity prices.
President Muizzu speaks during a press conference held at the President's Office on Monday. | President's Office | president office
President Dr. Mohamed Muizzu has stated that the Maldives possesses a highly resilient economy and assured that the state maintains sufficient funds to meet its sukuk obligations, even if payment were required immediately.
During a press conference held on Monday, President Muizzu assured that the government has sufficient funds to settle foreign loans due on April 8, 2026, noting that a total of $650 million has been set aside. The President further specified that $320 million of this amount is currently held in the Sovereign Development Fund.
President Muizzu highlighted that the country's official gross reserves have reached an all-time high, noting that the figure currently stands at $1.27 billion.
We currently have sufficient funds to settle our obligations even if payment were required today. The government is scheduled to repay the $500 million sukuk on April 8, 2026. To meet this commitment, we have already secured over $650 million in reserves. This ensures that after the $500 million sukuk is settled, a surplus of more than $150 million will remain. Of this total, the Sovereign Development Fund (SDF) held over $320 million as of last night. In addition to the $320 million saved in the SDF, the usable reserve stands at over $330 million. Consequently, we have more than $650 million in total savings currently available.President Dr. Mohamed Muizzu
Furthermore, President Muizzu stated that maintaining this level of state reserves helps mitigate and manage the adverse impacts stemming from the ongoing developments in the Middle East. He added that efforts to secure additional funding have been successful, noting that several productive transactions are currently underway.
President Muizzu highlighted the strength and growth of the Maldivian economy, noting that the government is now making weekly payments to settle outstanding dues to private companies. He announced that 200 million MVR would be disbursed this week alone. Furthermore, the President stated that under the Foreign Exchange Act, a total of 116 million USD had been exchanged by the end of last month.
Despite President Muizzu’s assertions, the cost of living has surged significantly, placing an immense financial burden on the general public. Furthermore, while the President claimed that the sukuk could be settled immediately, utilizing funds from the Sovereign Development Fund (SDF) and national reserves is not part of the government's strategy. The administration’s initial plan involved paying $150 million of the $500 million debt through the SDF, while refinancing the remaining $350 million. Although the government reportedly sought a loan to cover the refinancing portion of the sukuk, these claims were later denied.
