Government Repays USD 524 Million Sukuk Ahead of Deadline

The Government of the Maldives has repaid USD 524.68 million (MVR 8 billion) in obligations related to a sukuk issued during the administration of former President Ibrahim Mohamed Solih, according to the Ministry of Finance.

This includes the principal amount of USD 500 million and approximately USD 25 million in interest. Officials said the repayment was made using funds from the Sovereign Development Fund (SDF) alongside state reserves.

The Ministry stated that settling the debt is expected to reduce the country’s debt-to-GDP ratio and strengthen the financial sector.

Press Release

The Government of Maldives Successfully Settles the USD 500 million Sukuk

ދިވެހި ސަރުކާރުން 2021 ވަނަ އަހަރު ބައިނަލްއަގުވާމީ ބާޒާރަށް ދޫކޮށްފައިވާ 500 މިލިއަން އެމެރިކާ ޑޮލަރުގެ ސުކޫކު އަނބުރާ ދެއްކުމާ ގުޅޭhttps://t.co/V31Fur7EkP pic.twitter.com/xCAIzmC7Ep— Ministry of Finance and Planning (@MoFmv) April 2, 2026

The sukuk was issued in 2021 under Solih’s administration to refinance a USD 250 million “Sunny Side” bond raised during the presidency of Abdulla Yameen. The Finance Ministry has previously criticised the sukuk as having been taken at relatively high interest rates without a clear repayment strategy.

Since assuming office in November 2023, President Mohamed Muizzu has resumed foreign currency deposits into the SDF, which had been utilised during the COVID-19 pandemic. The government has also revised airport development fees in 2024 to increase foreign currency inflows, while aiming to minimise the impact on local travellers.

As a result of these measures, foreign currency holdings in the SDF have surpassed USD 350 million for the first time. The country’s total reserves stood at approximately USD 1.3 billion at the end of March, the Ministry said.

Separately, the Ministry confirmed it had completed a rollover of USD 100 million owed to the Abu Dhabi Fund, which had been due this month.

Following the sukuk repayment, the government said it is continuing discussions with financial institutions to secure further financial support. In a statement, the Ministry emphasised that maintaining the uninterrupted supply of fuel and essential goods, as well as supporting ongoing economic activity, remains a priority.

Although the sukuk repayment deadline falls next Wednesday, President Muizzu said earlier that the government faced no difficulty in meeting the obligation, noting that reserves stood at around USD 650 million at the time of his remarks in March.