President Solih Aims to Boost Sovereign Fund to $400 Million by 2026

President Ibrahim Mohamed Solih has outlined his plan to bolster the Maldives’ Sovereign Fund, aiming for a target of $400 million by the year 2026, speaking during the presidential debate last night.

President Solih, seeking re-election for a second term, expressed his commitment to expanding the Sovereign Development Fund’s balance to a range between $350 million and $400 million within the next five years.

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With the current fund already holding a substantial MVR 6 billion, President Solih expressed confidence in realising this vision, citing the continuous growth in state revenue as a key factor.

He stated, “When I assumed office, the state’s revenue stood at MVR 22 billion. This year, it is projected to reach MVR 34 billion, and by 2026, we anticipate an influx of MVR 46 billion into the state’s coffers.”

President Solih also addressed concerns regarding outstanding loans, mentioning that the “direct loan” due in 2026 amounts to $800 million. This sum includes $100 million from the ADFD, for which negotiations have been conducted to potentially defer repayments, creating flexibility in managing these financial obligations.

Furthermore, the President discussed the pending repayment of the $500 million Sukuk acquired during the COVID-19 pandemic, of which $250 million was allocated to settling the Sunny Side bond inherited from the previous government. He noted that the remaining funds were allocated to various state affairs.

In response to inquiries about the possibility of introducing new taxes during his second term, President Solih clarified that he has no such intentions.