The Government has deposited MVR 1.2 billion into the Sovereign Development Fund (SDF) so far this year, as efforts continue to strengthen the fund and build financial reserves.

The amount deposited during the first half of the year is 10.3 per cent higher compared to the same period last year, when the SDF received MVR 1 billion.

The Government has used funds from the SDF and State reserves to meet major financial obligations, including the repayment of a USD 500 million Sukuk that matured in April 2026 and a USD 400 million currency swap facility agreed with India in 2024.

The SDF, established in 2016, is designed to support debt repayments, provide financial assistance during economic challenges and fund major development projects. The fund operates separately from the official reserves managed by the Maldives Monetary Authority (MMA).

The fund is financed through revenue from the Airport Development Fee, dividends from the Maldives Airports Company Limited (MACL) and additional income generated through increased airport service charges.

The SDF previously held nearly USD 200 million in 2018, but a significant portion of its foreign currency holdings were converted into Maldivian Rufiyaa during the economic slowdown caused by the COVID-19 pandemic. When President Dr Mohamed Muizzu assumed office in 2023, the fund's balance had declined to around USD 2 million.

Since then, the Government has focused on rebuilding foreign currency deposits into the fund, with authorities stating that these efforts enabled major debt repayments using SDF resources.