The Government has stated that it will implement austerity measures in response to the ongoing conflict in the Middle East and Gulf, while ensuring that such measures do not disrupt essential public services.

Speaking at a press conference held at the President’s Office, Minister of Foreign Affairs Dr Abdulla Khaleel, who chairs the Special Cabinet Committee formed to address the situation, said the measures are aimed at mitigating the economic impact of the prolonged conflict while minimising inconvenience to the public.

At the briefing, Minister of Finance and Planning Moosa Zameer said the President has directed that all financial planning be carried out in a manner that safeguards the continuous provision of basic services, including fuel, food supplies, medical services, and financial support for students studying abroad. He added that coordination is ongoing between the Maldives Monetary Authority (MMA), Maldives Inland Revenue Authority (MIRA), and the Ministry of Finance to manage expenditure and monitor Government cash flow.

The minister also noted that while other countries have announced austerity measures in response to the conflict, such policies are based on country-specific circumstances. He said the Maldives has chosen not to publicly detail specific measures due to potential economic repercussions, adding that the Government’s approach focuses on reducing expenditure while maintaining financial stability.

The Special Cabinet Committee, comprising nine ministers including those responsible for defence, finance, transport, tourism, higher education and Islamic affairs, was established on 28 February 2026 to coordinate the Government’s response. The committee is expected to provide regular updates on measures being implemented to address the challenges arising from the conflict.