Maldives Publicly Thanks India for $50 Million Financial Lifeline Amid Economic Reforms
Male, May 12 — The Government of Maldives has expressed heartfelt gratitude to India for extending a crucial $50 million financial lifeline at a time when the island nation is implementing key fiscal reforms aimed at stabilizing its economy.
Maldivian Foreign Minister Abdulla Khaleel took to social media platform X (formerly Twitter) on Monday to thank India’s External Affairs Minister Dr. S. Jaishankar and the Indian government for the timely assistance.
“I express my sincere gratitude to EAM Dr. S. Jaishankar and the Government of India for extending crucial financial support to the Maldives through the rollover of the $50 million Treasury Bill. This timely assistance reflects the close bonds of friendship between the Maldives and India and will support the government's ongoing efforts to implement fiscal reforms for economic resilience,” Khaleel posted.
India Rolls Over Interest-Free Treasury Bill Through SBI
The financial support came in the form of a rollover of a $50 million Government Treasury Bill issued by the Maldives’ Ministry of Finance. The State Bank of India (SBI), under instructions from the Indian government, has subscribed to the bill for one more year — interest-free.
According to a statement issued by the High Commission of India in the Maldives, the initiative is part of a unique Government-to-Government arrangement that has been in place since March 2019.
“Since March 2019, the Government of India has facilitated the subscription of several such Treasury Bills by the SBI and has been rolling them over annually, interest-free, as emergency financial assistance to the Maldives,” the press release noted.
Maldives: A Key Ally in India’s ‘Neighbourhood First’ Policy
India’s continued support to the Maldives is in line with its strategic ‘Neighbourhood First’ policy and Vision MAHASAGAR (Mutual and Holistic Advancement for Security and Growth Across Regions). The Maldives, a key maritime neighbour in the Indian Ocean, has long been considered a critical partner in India’s regional diplomacy and security strategy.
The statement from the Indian High Commission further highlighted that the latest rollover, along with India’s earlier decision to extend a special export quota of essential commodities to the Maldives, showcases India’s steadfast commitment to the island nation’s stability and prosperity.
India Allocates ₹600 Crore Aid to Maldives in 2025-26 Budget
India’s financial assistance to the Maldives is part of its broader foreign aid strategy. In the Union Budget 2025-26, the Ministry of External Affairs allocated ₹5,483 crore for aid to foreign countries — an increase from ₹4,883 crore last year.
The Maldives saw the biggest jump in aid allocation, with funding rising from ₹470 crore in the revised 2024-25 budget to ₹600 crore for 2025-26, making it a top recipient of Indian foreign aid.
Strong Bilateral Ties and Strategic Cooperation
During a high-level meeting earlier this year, External Affairs Minister Dr. S. Jaishankar reaffirmed India’s commitment to supporting the Maldives during challenging times.
“We have increased our engagements in various sectors, and I want to emphasise that India has always stood by the Maldives. You are a concrete expression of our 'Neighbourhood First' policy,” said Jaishankar.
Foreign Minister Khaleel had also acknowledged India’s consistent and timely support, calling New Delhi the “First Responder” in times of crisis.
“India has always come forward in times of need, and we reaffirm our government’s strong commitment to work closely with India to realize our joint vision for a Comprehensive Economic and Maritime Security Partnership,” Khaleel stated.
Strategic Importance in the Indian Ocean
India’s sustained support to the Maldives is not just symbolic but strategic. Located in the heart of the Indian Ocean, the Maldives holds significant maritime importance. As global powers focus more on the Indo-Pacific region, India’s investment in its island neighbour reinforces its regional influence and counters geopolitical competition.
Inputs with agencies
