Minister of Economic Development and Trade Mohamed Saeed has said that the Maldives’ ability to repay the major external debt has strengthened investor confidence and eased concerns over the country’s financial stability.

Speaking at a press briefing at the President’s Office, Minister Saeed stated that the repayment of Sukuk of USD 524.68 million (approximately MVR 8 billion), incurred during the administration of former President Ibrahim Mohamed Solih, demonstrated that the country is no longer facing the level of debt risk previously highlighted.

The minister noted that concerns over the Maldives’ debt burden had been a key issue in recent years, with some international commentary suggesting the country could face an economic crisis similar to that experienced by neighbouring Sri Lanka. He said the successful repayment, made ahead of the due date, had helped address those concerns and reinforced confidence in the country’s financial position.

Minister Saeed added that investor sentiment is closely linked to perceptions of national debt, stating that both foreign investors and local businesses are now showing increased confidence in the Maldivian economy. He further noted that the Sukuk repayment had been recognised in international media, highlighting the country’s ability to meet its obligations despite global economic challenges.

Describing the development as a significant milestone, the minister said the outcome reflects positively on the country’s economic management and would support future access to financing from banks, financial institutions and international markets.