Sovereign Development Fund Records Strong Growth as Gov’t Accelerates Debt Repayment

The Sovereign Development Fund (SDF) has recorded a rise in revenue this year, reaching MVR 1.6 billion, according to the latest Weekly Fiscal Development Report issued by the Ministry of Finance and Planning.

The inflow reflects a notable 45 percent increase compared with the MVR 1.1 billion collected during the same period last year, indicating continued strengthening of the nation’s financial reserves.

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Alongside the expansion of the SDF, the government has significantly accelerated efforts to reduce public debt. Spending on loan repayments has reached MVR 4.4 billion so far this year, marking a 120 percent increase from the MVR 2.0 billion allocated to debt servicing in the corresponding period of the previous year.

The Ministry stated that the simultaneous focus on growing the SDF and meeting debt obligations highlights the administration’s commitment to enhancing fiscal stability and safeguarding long-term economic resilience.

Established in 2016, the SDF plays a key role as a financial buffer, allocated to support debt repayment, fund priority development projects, and mitigate the impact of future economic shocks. It operates separately from the central bank’s reserves and is funded through airport development fees collected from departing passengers, dividends from Maldives Airports Company Limited, and increased fees for selected airport services.