President Dr Mohamed Muizzu has ratified the National Debt Bill, a significant piece of legislation aimed at streamlining the Maldives' approach to managing state debt and ensuring fiscal responsibility. The bill was passed by the Parliament during the 55th sitting of the 20th Majlis on Wednesday,  November 27, 2024.

The Act is designed to equip the Government with enhanced mechanisms to access both domestic and international financing while implementing robust safeguards to minimise debt servicing costs. Its provisions emphasise responsible borrowing practices, aiming to mitigate any long-term impact on the nation’s fiscal health, economic growth, and the well-being of future generations.

Among its objectives, the Act sets out strategies to achieve mid-term debt management goals and specifies the financial instruments available for securing financing. Transparency and accountability in debt management are central to the legislation, with explicit provisions to ensure openness in the handling of public funds.

To oversee the implementation of these measures, the legislation mandates the establishment of a dedicated Debt Management Department. This new body will operate under the Ministry of Finance, succeeding the current Debt Management Department and ensuring a more focused and efficient approach to managing the Maldives’ debt obligations.

The Act has been published in the Government Gazette following the President's ratification and is set to take effect six months from the date of its publication. This timeline will provide sufficient scope for relevant Government entities to prepare for the implementation of its provisions.