BML Denies Financing SBI Repayment as Forex Demand Surges 33 Per Cent

Bank of Maldives, BML has rejected reports and rumours that it provided foreign exchange liquidity or used its own funds to finance the Maldivian Government’s final USD 50 million repayment to the State Bank of India (SBI).

The clarification comes as the national bank manages an unprecedented surge in domestic foreign exchange demand, which has seen dollar sales rise by a third compared to the previous year, says BML. 

In statements released yesterday, both BML and the Ministry of Finance and Public Enterprises confirmed that the USD 50 million debt settlement completed on 17 September to clear the final tranche of a USD 150 million budget support facility established in 2019 was financed entirely through the Sovereign Development Fund.

The bank said the government’s debt repayment was separate from BML’s financial position and operations, and stressed that no customer deposits, internal reserves or other BML funds were used for the settlement.

“BML did not fund this repayment from customer deposits, its own resources, or any other BML funds,” the bank said.

BML also warned against what it described as false or misleading claims about its financial position, saying it reserved the right to take legal action against statements that could cause material harm to the bank’s reputation, customers, shareholders or financial stability.

BML said the level of foreign exchange outflows was putting pressure on the supply of US dollars available to the bank.

According to figures released by the bank, BML sold USD 653 million in foreign currency during the first eight months of 2026, representing an average monthly outflow of USD 81.6 million, a 33.33 per cent increase over the same period in 2025. 

BML states that if the demand persists at this pace, total foreign currency sales by the bank are projected to reach approximately USD1 billion by the end of the year. 

The bank further stated that  September is typically a period of tighter foreign exchange liquidity, with the combination of seasonal pressures and elevated demand contributing to delays in processing some interbank and telegraphic transfer transactions over the past two weeks.

The bank temporarily introduced daily limits on certain e-commerce transactions as it sought to manage dollar outflows. It said priority was being given to essential imports, healthcare payments and overseas tuition.

According to BML, the temporary measures have brought foreign exchange outflows back into balance with inflows.

The bank expects processing times for delayed dollar transactions to return to normal by the end of the coming week.

Reassuring shareholders and account holders, BML maintained that its balance sheet remains financially strong and fully capitalized, attributing recent transfer delays solely to temporary market supply and demand friction rather than internal financial weakness.