In a significant show of support, the Government of India has approved the rollover of a USD 50 million treasury bill issued by the Maldivian government, providing crucial liquidity at a time when the island nation is pushing ahead with major economic and fiscal reforms.
The State Bank of India (SBI) will extend the treasury bill for another year at zero interest, following a formal request from the Maldivian government. The treasury bill, which matured on May 12, has now been renewed under what both countries have described as a unique government-to-government arrangement.
India’s High Commission in Malé confirmed the move, noting that the extension is part of an ongoing arrangement designed to offer emergency financial support to the Maldives. According to the statement, such arrangements have been rolled over annually since 2019, consistently on an interest-free basis, demonstrating India’s continued backing of the Maldivian economy.
Maldivian Minister of Foreign Affairs Dr Abdulla Khaleel expressed his gratitude to Indian External Affairs Minister Dr S. Jaishankar and the Government of India for the renewed assistance. In a statement, the Ministry of Foreign Affairs described the support as timely and generous, adding that it reflects the deep-rooted ties and enduring friendship between the two nations.
“At a time when the Maldives is undertaking significant economic and fiscal reforms, this assistance provides vital liquidity relief and underscores the depth of the bilateral partnership,” the statement said.
This latest extension adds to a series of financial lifelines India has offered the Maldives in recent years, including currency swap arrangements and multiple interest-free Treasury bill subscriptions by the SBI. Another USD 50 million treasury bill was similarly rolled over in September 2024, and is now set to mature in September 2025.
India’s continued financial support underscores the strategic economic cooperation between the two countries, as the Maldives navigates a challenging financial landscape amid broader reform efforts.
