China’s President Xi Jinping speaks during a bilateral meeting with Maldivian President Mohamed Muizzu ahead of the Shanghai Cooperation Organization (SCO) Summit 2025, in Tianjin, China, August 31, 2025
| Photo Credit: Reuters

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Maldives President Mohamed Muizzu. File
| Photo Credit: PTI

“The Maldivian government has estimated that India will provide MVR 1.6 billion in grant in aid to the archipelago nation in 2025, constituting 72% of the total foreign aid it will receive from friendly countries,” according to media reports.

We hope to welcome more Indian tourists to Maldives: Mohamed Muizzu

The estimates were made in the proposed State Budget 2025 submitted to the Parliament on Thursday (October 31, 2024), news portal Adhadhu.com reported.

In the proposed budget, President Mohamed Muizzu-led administration projected a total of Maldivian Rufiyaa (MVR) 2.25 billion as international grant in aid. Of this, India is expected to provide 72%, amounting to MVR 1.6 billion (approximately $104 million).

Editorial | ​First responder: On Maldives-India ties

“China will provide the archipelago nation MVR 502 million, 22% of projected free aid,” the report said.

The Maldivian government expects to receive free aid from other friendly nations such as Japan, Pakistan, Saudi Arabia and the Netherlands. According to the proposed budget, around MVR 336 million will be received as free aid from international organisations.

India gives Maldives a $750 million currency swap arrangement

“India has provided “substantial” financial help to the Maldives this year,” the report said.  During Muizzu’s state visit to India last month, New Delhi announced a $400 million support to the island nation. The two sides also inked a currency swap agreement to the tune of ₹3,000 crore.

Earlier this year, India came to the assistance of the Maldives by agreeing to rollover the Treasury Bills subscribed by the State Bank of India amounting to $100 million in May and September for a further period of one year.

Male:

The President of Maldives, Mohamed Muizzu, decided to take the necessary steps to introduce the Unified Payment Interface (UPI) in the island nation, following the recommendation of the Cabinet on Sunday.

This move came following India agreeing to share its expertise in the implementation of digital and financial services and to work in the development of the Digital Public Infrastructure (DPI) through the launch of India’s Unified Payments Interface (UPI), Unique Digital Identity, during Mohamed Muizzu’s State Visit earlier this month.

The decision by the Maldivian President is expected to bring significant benefits to the Maldivian economy, including increased financial inclusion, improved efficiency in financial transactions, and enhanced digital infrastructure, as per a statement released by his office.

The statement further added that the decision was made after the Cabinet thoroughly discussed a report submitted by the Minister of Economic Development and Trade at a cabinet meeting.

President Muizzu also decided to set up a consortium to introduce UPI in the Maldives and further suggested that banks, telecom companies, state-owned companies and fintech companies operating in the country should be included in the consortium.

Mohamed Muizzu further appointed TradeNet Maldives Corporation Limited, a leading agency with proven expertise, as the consortium’s leading agency, the statement stated.

He also decided to constitute an interagency coordination team comprising the Ministry of Finance, the Ministry of Homeland Security and Technology and the Maldives Monetary Authority to lead the Ministry of Economic Development and Trade to oversee the establishment of the UPI in the Maldives.

During his state visit to India earlier this month, India also launched the RuPay cards in the Maldives to enhance the ease of payments for Indian tourists visiting the island nation as well as for Maldivian nationals visiting India, in an attempt to foster digital and financial cooperation between the two countries.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

New Delhi:

The Maldives will not act to undermine India’s security and views New Delhi as a “valued partner and friend”, and cooperation in several fields – including defence – will “always be a priority”, President Mohamed Muizzu said Sunday as he arrived in the national capital for his first bilateral visit.

Mr Muizzu – seen by some as a ‘pro-China’ leader who ran his election campaign on an ‘India Out’ platform – told a national English daily Maldives’ relationship with India is “built on respect and shared interests” and that Delhi has been, and is, one of his country’s largest trade and development partners.

The Maldives leader is scheduled to meet Prime Minister Narendra Modi later today.

“Maldives would never do anything to undermine security of India. While we enhance cooperation with other countries in various sectors, we remain committed to ensuring our actions do not compromise the security and stability of our region…” he told The Times of India in an extensive interview.

Mr Muizzu, while not naming China, also underlined his administration’s resolve to “fostering growth and development through diverse international collaborations”. He flagged his ‘Maldives First’ policy, saying “it is essential for the Maldives to diversify international relations and reduce over-dependence on any one country”. However, he said that such engagements would not undermine India’s interests.

“Respect for our neighbours and friends is embedded in our DNA,” he said as he also called on Indian tourists to return. “Indians make a positive contribution… Indian tourists are welcome,” he said, batting for his country’s most important economic sector, which took a hit last year after the diplomatic row.

This is Mr Muizzu’s first bilateral visit and the comments reflect growing bonhomie after a months-long diplomatic stand-off last year, over three Maldivian ministers’ comments about Prime Minister Modi after a social media post about Lakshadweep as an alternate tourist destination to the Maldives.

The Maldives’ Foreign Ministry distanced itself from the remarks and the ministers were suspended; two – Mariyam Shiuna and Malsha Shareef – resigned last month after the bilateral visit was confirmed.

And then the request in May – weeks before attending Mr Modi’s swearing-in ceremony – to remove 90 military personnel deployed to three aviation platforms gifted by India – also raised eyebrows.

Delhi accepted the request and replaced military personnel with “competent technical” staff.

The ejection of Indian military personnel and an ‘India Out’ agenda was seen as one of Mr Muizzu’s key poll promises. Pressed on these topics, the Maldives President said he “did what the people of Maldives asked of me”, but stressed India remains a key partner in efforts to secure regional stability.

“This historic relationship is intertwined like the roots of a tree… built on centuries of exchange and values shared. The relationship between the Maldives and India has always been strong…”

Earlier Mr Muizzu denied having an ‘India Out’ agenda but insisted his country had a “serious problem” with the presence of foreign military on its soil. “The people of Maldives do not want a single foreign soldier in the country,” news agency PTI quoted his comments to local website adhadhu.com.

READ | Never Followed “India Out” Agenda:: Maldives’ Mohamed Muizzu

Mr Muizzu also spoke about India-assisted infrastructure projects, like the Greater Male connectivity scheme and water and sewerage facilities for 28 islands in the archipelago.

The Maldives is one of India’s key maritime neighbours in the Indian Ocean region and the overall bilateral ties, including in the areas of defence and security, witnessed an upward trajectory under the previous government led by President Ibrahim Mohamed Solih.

READ | “India One Of Closest Allies”: Maldives Prez After Meeting S Jaishankar

India, External Affairs Minister S Jaishankar said as he visited Male in August, during which recognises “common challenges and a shared interest in maintaining peace and security in the region”.

With input from agencies

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New Delhi:

Maldives President Mohamed Muizzu will be visiting India from October 6 to 10, the foreign ministry said today. This will be his first bilateral visit to India. He had earlier travelled to India in June this year for the swearing-in ceremony of Prime Minister Narendra Modi and his council of ministers.

Mr Muizzu will meet President Droupadi Murmu and hold discussions with PM Modi on bilateral, regional, and international issues of mutual interest during his visit. He will also visit Mumbai and Bengaluru where he would be attending business events.

Maldives is India’s key maritime neighbour in the Indian Ocean Region (IOR). The nation also found a special place in the Prime Minister’s vision of ‘SAGAR’ (Security and Growth for All in the Region) and India’s ‘Neighbourhood First Policy’.

“The visit of President Mohamed Muizzu to India after the recent visit of the External Affairs Minister )S Jaishankar) to the Maldives is testimony to the importance that India attaches to its relations with the Maldives and is expected to lend further momentum to cooperation and robust people to people ties between the two countries,” the Minister of External Affairs said in a statement.

S Jaishankar visited the Maldives in August – first high-level trip from New Delhi after the island nation’s pro-China president, Muizzu, assumed office in November last year.

During his visit, he met the Maldives President and other top leaders and assured them that New Delhi attached top priority to its multifaceted relationship with Male and was determined to further its developmental cooperation with the country.

India’s relationship with the Maldives was hurt after Muizzu, known for his pro-China leanings, took charge as the President late last year.

Within hours of his oath, he demanded India replace the defence personnel it had stationed in the Maldives with civilians.

He, however, visited India to attend PM Modi’s oath-taking ceremony and recently reaffirmed his administration’s full commitment to strengthening the historic and close connections between the Maldives and India.

He said that India has always been one of the closest allies and invaluable partners, facilitating and providing aid whenever Maldives has needed it.

Male:

Maldives President Mohamed Muizzu has denied having an “India Out” agenda, asserting that the island nation had a “serious problem” with the presence of foreign military on its soil.

Mohamed Muizzu, who is in the US to attend the 79th Session of the United Nations General Assembly, made the remarks on Thursday while responding to a question at Princeton University’s “Dean’s Leadership Series”.

“We have never been against any one country at any point. It’s not India Out. Maldives faced a serious problem with foreign military presence on this soil,” Maldivian news portal adhadhu.com quoted him as saying.

“The people of Maldives do not want a single foreign soldier in the country,” Mohamed Muizzu said.

The ties between India and the Maldives came under severe strain since November last year when Mohamed Muizzu, known for his pro-China leanings, took charge as Maldivian president.

Mohamed Muizzu had asked India to withdraw nearly 90 Indian military personnel operating three aviation platforms gifted by the country. India withdrew its military personnel by May 10 and replaced them with civilian personnel to operate a Dornier aircraft and two helicopters.

Mohamed Muizzu further stressed he had taken action against deputy ministers for insulting Prime Minister Narendra Modi on social media.

“No one should say such a thing. I took action against it. I will not accept insulting anyone like that, whether he is a leader or an ordinary person. Every human being has a reputation,” the report quoted him as saying.

Earlier this year, deputy ministers in Maldives’ youth ministry were suspended for derogatory social media posts against Prime Minister Modi following a backlash, with New Delhi strongly raising the matter with Male. The deputy ministers criticised Modi for his post on ‘X’ following his visit to Lakshadweep, inferring that it was an attempt to project the Union Territory as an alternative tourist destination to the Maldives.

Prime Minister Modi was in Lakshadweep on January 2 and 3 to inaugurate several projects.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

A file photo of the flag of Republic of Maldives.

Despite global lenders and rating agencies flagging a “high risk” of debt distress in the Maldives, the government said it is well prepared to stave off a financial meltdown.

Addressing Colombo-based journalists on Friday evening (September 13, 2024), Minister of Foreign Affairs Moosa Zameer and Minister of Finance Mohamed Shafeeq ruled out a possible default and pointed to “crucial steps” taken by the government towards fiscal consolidation and reform.

India, Maldives hold defence dialogue focusing on Indian Ocean

The top officials’ assurance comes days after rating agency Moody’s downgraded the island country’s credit rating and warned of a full-blown debt crisis and possible default, amid looming deadlines for foreign debt servicing.

President Mohamed Muizzu assumed office in November 2023 after a big election win — he has a comfortable majority in Parliament or People’s Majlis as well — but currently faces a daunting challenge as the Indian Ocean archipelago grapples with high external debt. “The Muizzu administration is taking advice from the International Monetary Fund, but there is no immediate plan to sign up for its programme,” the Ministers said, expressing confidence that its bilateral partners would step in.

China is the Maldives’s largest creditor and India is another key lender. The two countries are financing a host of infrastructure projects that the government hopes will aid better connectivity and economic development. “Both India and China are very sensitive to our challenge and are willing to help,” Mr. Zameer said, pointing to “many options” on the table, including a possible debt freeze, currency swaps, and local currency settlements. “We will discuss these as and when there is a need.”

On Friday (September 13, 2024), the Maldives’s Ministry of Economic Development & Trade signed an agreement with the People’s Bank of China to establish a local currency settlement framework. Authorities are in talks with India for a similar arrangement.

“We are already taking all the necessary steps including reform of State-Owned Enterprises and our health sector. We are switching from blanket to targeted subsidies and rationalising our public expenditure,” Mr. Shafees said. Following the downgrade by Moody’s, the Finance Ministry said it was engaging with all its bilateral and multilateral partners to meet the financing requirements, and that a “strong performance” in the vital tourism sector was expected to boost growth.

Tourist arrivals have seen an uptick in 2024. Chinese arrivals lead the list, contributing 12% of visitors, while arrivals from India declined sharply from 11% of visitors to 6%, the World Bank said in its May 2024 update. The period coincides with strained bilateral ties between India and the Maldives, on the heels of the “India Out” campaign around Mr. Muizzu’s election last year, and amid controversial statements made by two junior ministers in his government that triggered a call to “boycott Maldives” within India.

Emphasising that relations have since seen a marked improvement, Mr. Zameer said Indian tourist arrivals are “picking up very well” and the neighbours are keen to strengthen ties. “We have had high-level engagement”, including External Affairs Minister Jaishankar’s visit to the Maldives in August, and the countries’ “very pragmatic” leaders have addressed the “initial mistrust”, he said. President Muizzu is expected to travel to New Delhi soon on his first bilateral visit, although he has Mr. Modi on the sidelines of other global meets and at Mr. Modi’s swearing in ceremony this year.

“I think India-Maldives ties now are as good as they were during President Maumoon Abdul Gayoom’s time, which is considered the best time in our relationship,” Mr. Zameer added.

Maldives President Mohamed Muizzu has slammed the move as an “illegal attempt” to overthrow his government
| Photo Credit: AP

Police in the Maldives are investigating an alleged attempt to topple President Mohamed Muizzu by stirring anger over the Indian Ocean archipelago’s worsening financial woes.

Last week, the main commercial bank in the upmarket tourist destination drastically reduced the foreign exchange spending allowed for Maldivians, sparking widespread anger.

Mr. Muizzu has slammed the move as an “illegal attempt” to overthrow his government, by making him unpopular and encouraging street protests.

“An investigation has been launched into the alleged coup attempt,” the police said in a statement on Monday. (August 26, 2024)

There have been no demonstrations in the capital Male, but scathing criticism of the government has erupted online.

“Hundreds of ‘bot’ accounts have been used on social media to encourage people to take to the streets to overthrow the government and incite public unrest,” police said.

The bank said the changes, which they have since rescinded, came “in response to the escalating usage of foreign currency spend on cards and the static sale of foreign currency to the Bank”.

The international credit rating agency Fitch downgraded the Maldives in June and warned it could be headed for a sovereign default, after its foreign currency reserves dropped to $492 million in May.

The downgrade came weeks after the IMF warned the Maldives against a looming “debt distress”, as the small but strategically placed country eyes further borrowing from main creditor China.

Pivot to China

Official data showed the Maldives’ foreign debt reaching $4.038 billion last year, about 118 percent of gross domestic product, an increase of nearly $250 million from 2022.

Fitch had noted the government’s debt servicing obligations, amounting to $409 million this year, would add to severe stress.

The crisis escalated over the weekend, when the Bank of Maldives Limited (BML) stopped debit card transactions, and allowed a maximum monthly credit card spend of $100 for online transactions.

Maldivians use their cards to pay for tuition and medical treatment abroad apart from online purchases.

Mr. Muizzu told supporters the bank decision was a plot to discredit him, and accused some BML directors of being loyal to the former government.

“There is room to believe that this (cap on spending) was an illegal attempt to overthrow a legitimate government,” Muizzu said.

The bank on Sunday (August 24, 2024) raised forex spending limits after the Maldives Monetary Authority intervened.

Political parties have called on the government to tax hotels in foreign currency.

Since winning office last year, Mr. Muizzu has reoriented his nation from traditional benefactor India and towards China.

As of June 2023, the Export-Import Bank of China owned 25.2 percent of the Maldives’ external debt and was the country’s biggest single lender, Male’s finance ministry figures showed.

External Affairs Minister S. Jaishankar meets Maldives President Mohamed Muizzu on August 10, 2024.
| Photo Credit: PTI

External Affairs Minister S. Jaishankar met Maldivian President Mohamed Muizzu on Saturday (August 10, 2024) and emphasised New Delhi’s commitment to deepen India-Maldives ties for the benefit of the people in the two countries and the region.

Mr. Jaishankar is on a three-day official visit to Maldives to reset the bilateral relationship, the first high-level trip from India after the archipelago nation’s pro-China president Muizzu assumed office in 2023.

“Privileged to call on President Dr Mohamed Muizzu. Conveyed greetings of PM Narendra Modi. Committed to deepening India-Maldives ties for the benefit of our people and the region,” Jaishankar posted on X (formerly known as Twitter) along with a photograph of the meeting.

Mr. Jaishankar’s trip to the Maldives comes weeks after President Muizzu’s visit to India in June to attend the swearing-in ceremony of Prime Minister Narendra Modi’s government.

Also read: India to introduce UPI payment service in Maldives

Maldives is one of India’s key maritime neighbours in the Indian Ocean region and the overall bilateral ties, including in the areas of defence and security, witnessed an upward trajectory under the previous government in Male.

Male:

Maldives President Mohamed Muizzu thanked India for its support of the island nation in easing its debt repayment and affirmed hope that New Delhi and Male would forge stronger ties and sign a free trade agreement.

Muizzu was addressing the official Independence Day function in the Maldives on Friday. During his address, he commended the administration’s foreign policy, celebrating eight months of ‘diplomatic success,’ according to the Maldives President Office.

President Muizzu expressed gratitude to India and China for their support in easing the Maldives’ debt repayment, thereby enabling the country to ensure economic sovereignty.

Emphasising the need to alleviate the local shortages of US dollars, he said that the Maldives government is negotiating currency swap agreements with both New Delhi and Beijing.

The Maldives President also announced that his administration is negotiating a Free Trade Agreement (FTA) with the United Kingdom and expressed hope to reach a similar agreement with India.

Notably, the Mohamed Muizzu government in the Maldives took a reconciliatory tone after ties between the two nations soured, leading to a diplomatic row.

Last month, President Muizzu also attended the oath ceremony of Prime Minister Narendra Modi, after he took office for the third consecutive term.

Earlier this year, Muizzu sought debt relief measures in the repayment of the hefty loans taken from the country over consecutive governments. He even stated that India will continue to remain the Maldives’ “closest ally” and emphasised that there was no question about it.

The loan amount owed by Maldives to India by the end of last year stood at 6.2 billion Maldivian Rufiyaa, according to Maldives-based The Edition.

Notably, earlier this year, the International Monetary Fund (IMF) warned Maldives that it faces a high risk of debt distress without significant policy changes.

Notably, Maldives President Mohamed Muizzu has displayed ‘anti-India’ rhetoric and he even ran the electoral campaign on the line of ‘India Out’. The removal of Indian troops from the country was the main election campaign of Muizzu’s party.

Since coming to power, he has taken several steps that have been unconventional from the point of view of India-Maldives ties.

He departed from a long convention by not visiting India on the first official visit and instead went to Turkey, followed by China. During his visit, the two countries elevated their ties to comprehensive strategic cooperative partnership and signed around 20 agreements.

Last December, the Maldives said it would not renew the Hydrographic Survey agreement made with India.

After Muizzu government officially requested India to withdraw troops, the Indian government set up a High-Level Core Group to discuss the matter. The withdrawal of Indian troops was completed in May this year.

Days after the withdrawal of Indian soldiers, Maldives Defence Minister Ghassan Maumoon also acknowledged that the country’s defence forces were capable of operating the three aircraft donated by India,

The row between New Delhi and Male erupted after three Maldivian deputy ministers made derogatory comments against Prime Minister Narendra Modi, over his pictures from the visit to Lakshadweep.

PM Modi had called for the Indian island cluster to be developed as a destination for beach tourism and promotion of domestic tourism.

The matter snowballed into a major diplomatic row, with New Delhi summoning the Maldivian envoy and registering a strong protest against the viral posts. The three deputy ministers were suspended and they remain under suspension with pay.

Maldives Tourism Ministry data showed, earlier this year, that the number of Indian tourists visiting the Maldives dropped by 33 per cent as compared to last year.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)