President Mohamed Muizzu has assured the public that the Maldives is financially prepared to settle its USD 500 million sukuk obligation due in April, revealing that the country currently holds more than USD 650 million in reserves.
Speaking at the launch of his new weekly Monday press briefings, the President addressed growing public interest over the large repayment scheduled for April 8, 2026. According to him, there is no cause for concern.
USD 500 Million Sukuk Payment Scheduled for April 8
The USD 500 million Islamic bond was issued in 2021 during the administration of former President Ibrahim Mohamed Solih. The repayment date, set for April 8 next year, has been closely watched by financial analysts and the public alike.
President Muizzu confirmed that the government has formally decided to honor the payment on the scheduled date.
“To meet the April 8 deadline, we currently have over USD 650 million saved,” he stated during the press conference.
He broke down the figures to provide clarity. As of the previous day, USD 320 million was available in the Sovereign Development Fund, while another USD 330 million was held in usable reserves. Combined, these funds place the country in a position to comfortably settle the sukuk without straining state finances.
USD 150 Million Expected to Remain After Payment
After repaying the USD 500 million bond, the Maldives is projected to retain approximately USD 150 million in reserves, according to the President.
This announcement appears aimed at easing concerns about liquidity and foreign currency availability. Large sovereign debt repayments often trigger uncertainty in smaller economies. However, the administration insists that the situation is under control.
The President also indicated that discussions are underway regarding other outstanding foreign loans. While specific details were not disclosed, he described the progress of these negotiations as encouraging.
Payments to State-Owned Enterprises Continue
Beyond foreign debt obligations, the government is also moving forward with payments owed to State-Owned Enterprises.
An additional MVR 200 million is expected to be disbursed next week as part of ongoing efforts to clear outstanding balances. Furthermore, priority will be given to settling payments owed to companies with claims under MVR 1 million in the coming week.
This step, the President suggested, is designed to support local businesses and improve cash flow within the domestic economy. For many smaller contractors, timely government payments can make the difference between stability and hardship.
President Highlights Economic Stability and Growth
Addressing broader concerns about the national economy, President Muizzu described the Maldives as being in a “strong and stable” financial position. He emphasized that the economy is not only steady but also expanding at a rapid pace.
While global economic conditions remain unpredictable, the administration maintains that prudent financial management and reserve planning have strengthened the country’s resilience.
