President Dr Mohamed Muizzu has said protecting the Maldives' economic independence is essential to safeguarding the country's sovereignty, describing prudent debt management as a key part of preserving both national stability and independence.

Speaking at a press conference held at the President's Office on Monday, the President rejected opposition claims that repaying State debt does not directly benefit the public. He said meeting the country's debt obligations is closely linked to economic stability, warning that failure to do so would weaken the economy, undermine investor confidence and ultimately affect the livelihoods of Maldivians.

The President said reducing the country's debt burden remains a central objective of the Government's economic policy, noting that some State borrowings are secured against national assets. He stressed that managing debt responsibly is necessary not only to protect those assets but also to preserve the country's economic independence, arguing that sovereignty can be compromised through financial vulnerability as well as external threats.

President Dr Muizzu also expressed confidence that the Maldives would meet its debt obligations due this year, including around USD 600 million in repayments. He said the current Administration has already repaid more debt in a shorter period than any previous government and remains on track to honour its remaining commitments.

Referring to the recent upgrade of the Maldives' sovereign credit rating by Fitch Ratings, the President said the improvement reflected growing confidence in the country's economic management. The upgrade followed the successful repayment of the Maldives' USD 500 million sovereign Sukuk in April, with Fitch citing the reduced external debt burden and improved prospects for rebuilding foreign currency reserves.

The President added that the Government would continue pursuing fiscal and economic policies aimed at strengthening the country's financial position while reducing the debt burden without placing additional pressure on the public or the wider economy.