The Maldives’ national debt has reached MVR 148.9 billion by the end of the second quarter of 2025, according to newly released figures from the Finance Ministry. The latest statistics show a steady rise in both domestic and foreign borrowing, underscoring the government’s ongoing reliance on loans to meet financial obligations.
Out of the total debt, MVR 127.8 billion has been borrowed directly by the state, while an additional MVR 21.1 billion comes from loans guaranteed by the government. The majority of this debt is linked to domestic borrowing, which now stands at MVR 85.8 billion. That marks an increase of about MVR 1.8 billion compared with the first quarter of the year.
Foreign debt has also edged higher. In the first quarter, foreign obligations were recorded at MVR 41.4 billion, but the figure rose to MVR 42 billion by the second quarter. In contrast, the amount tied to government guarantees saw a small decline, falling from MVR 21.4 billion to MVR 21.1 billion.
While the total debt has grown in nominal terms, its ratio to the country’s GDP has remained relatively steady. Debt accounted for 122.2 percent of GDP in the first quarter of 2025 and rose slightly to 124 percent in the second quarter.
During the same period, the government spent MVR 3.5 billion on debt servicing. This included MVR 1.9 billion in principal repayments and MVR 1.6 billion in interest payments, highlighting the significant share of national expenditure directed toward managing debt.
Foreign debt figures reveal that India remains the Maldives’ largest single creditor. As of the second quarter, MVR 9.2 billion is owed to India’s Exim Bank, much of it carried forward from loans secured by past administrations.
The next largest liability is tied to bonds sold to international investors, which total MVR 7.7 billion. Following this, MVR 7.3 billion is owed to China’s Exim Bank, making it the third biggest foreign lender to the Maldives.
The rising debt underscores the growing pressure on public finances as the Maldives continues to balance domestic borrowing with international loans. While the government has sought to manage repayments and ensure stability, the figures show that debt remains a central challenge for the country’s economic outlook.
How the Maldives navigates this mounting debt will be a key issue in the coming years, especially with repayment obligations steadily increasing alongside the need for new financing to support infrastructure and development projects.
