Tourism Revenue Down 30 Percent, Gov’t Spending Still High, Says Nasheed

Former President Mohamed Nasheed has expressed concern that government waste and expenditure remain uncurbed even as tourism revenue in the Maldives has dropped by 30 percent amid unrest in the Middle East.

On Thursday, the government settled a USD 400 million debt owed to India, which was taken in October 2024. The repayment followed two deadline extensions. After the settlement, India granted access to INR 30 billion (USD 319 million) agreed upon during President Dr Mohamed Muizzu’s official visit to India last October.

Referring to the development, Nasheed said in a post on X that this reflects the standard procedure by which countries roll over debt, while thanking India and praising its support. He stressed, however, that the government must have a clear plan to ensure debt sustainability.

Thank you India. 🙏🏽 India announced that USD 400M debt matured on 23 April 2026. On the same day, India cleared a new INR 30 billion facility.
India activated new funding on the exact day the old debt came due. This is often how countries "roll over" swaps – replace old debt with…

— Mohamed Nasheed (@MohamedNasheed) April 24, 2026

“Tourism revenue is down by 30% and government spending remains high and wasteful,” he said on X.

Nasheed, who has repeatedly raised concerns over public debt, has previously called for engagement with the opposition on debt management. He has also proposed constitutional and governance reforms, arguing that structural changes are necessary.

The government has continued to service its debts on time. With a USD 500 million repayment made earlier this month, total repayments have exceeded USD 900 million.

Despite this, concerns over high debt levels persist. International financial institutions and economic experts have urged the government to reduce expenditure and curb waste, warning that current measures may not be sufficient.