Maldives has paid and settled a total of 524.68 million US dollars in Sukuk debt on 3 April 2026, according to the Ministry of Finance.
What was paid?
The payment includes:
- 500 million US dollars in the main loan amount
- 24.68 million US dollars in interest
The debt was cleared using funds from the Sovereign Development Fund and state reserves.
Where did this debt come from?
The Sukuk was issued in 2021 during the administration of Ibrahim Mohamed Solih.
It was used to repay an earlier 250 million US dollar “Sunny Side” bond taken by a previous government.
Did You Know?
A bond is a loan that pays interest, while a sukuk is an ownership share in an asset that pays profit instead of interest.
What does this mean for the economy?
The Ministry of Finance said that settling this debt is expected to:
- reduce the country’s debt to GDP ratio
- strengthen the financial sector in the medium term
How was the payment possible?
Since coming to power, the government of Mohamed Muizzu has taken steps to rebuild reserves.
This includes increasing foreign currency in the Sovereign Development Fund and adjusting Airport Development Fee rates. As a result:
- the SDF crossed 350 million US dollars
- total state reserves reached about 1.3 billion US dollars by the end of March
The government said it is now working with financial institutions to secure further support.
The Sukuk was due this week, but officials had earlier said there were enough funds available to meet the payment on time.
