The Government has spent more than MVR 12 billion on debt repayments so far this year, more than doubling expenditure compared with the same period in 2025.

The latest Weekly Fiscal Development Report released by the Ministry of Finance and Enterprises shows that MVR 9.2 billion was spent on repaying loans between 1 January and 16 July, compared with MVR 3.2 billion during the corresponding period last year.

Interest and financing costs reached MVR 2.7 billion, slightly higher than the MVR 2.6 billion recorded during the same period in 2025.

Combined, total debt servicing expenditure, including loan repayments, interest and financing costs, stood at MVR 12.04 billion, an increase of 101.5 per cent from MVR 5.98 billion a year earlier.

The sharp increase was largely driven by the repayment of the Government's USD 500 million sovereign sukuk, which matured in April. The payment was made using the Sovereign Development Fund and the country's foreign exchange reserves, marking the largest single-day debt repayment in the Maldives' history.

The 2026 State Budget allocates MVR 12.9 billion for loan repayments and MVR 5.5 billion for interest and financing costs.

The report also shows that the Sovereign Development Fund has accumulated MVR 1.2 billion so far this year.