Former Finance Minister Claims Gov’t Has Used Up Sovereign Development Fund Reserves

Former finance minister, Ibrahim Ameer has stated that the Maldivian government has depleted the US dollar reserves in the Sovereign Development Fund (SDF), with only USD 18 million remaining.

Speaking at a press conference organised by the opposition Maldivian Democratic Party (MDP) yesterday, Ameer urged the government to publicly disclose the current balance of the SDF.

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“The government has now used the dollars in the SDF. There’s just USD 18 million left in the fund,” Ameer said, adding that the remaining funds were used to service national debt and manage cash flow.

He further alleged that the government tapped into the SDF for payments by the Housing Development Corporation (HDC) and the State Trading Organization (STO), without providing further details.

This statement comes after President Dr Mohamed Muizzu announced in July that his administration had deposited USD 65 million into the SDF.

Former President Ibrahim Mohamed Solih, also addressing the issue, explained that at the end of his administration, USD 30 million out of the USD 32 million in the fund had been invested in Maldivian banks and could be withdrawn when required. He also noted that the SDF balance had increased from MVR 1.9 billion at the start of his term to over MVR 7 billion by the end. Solih claimed that the practice of making US dollar deposits to the fund only began last year.

The SDF, a critical financial reserve established for national development projects, is now at the centre of political debate, as concerns grow over its management and transparency.