Economy
Despite international concerns regarding the Maldives' debt servicing capacity, President Dr. Mohamed Muizzu has provided assurance that debts will continue to be serviced regularly without assistance from the IMF. The government has initiated efforts to acquire a large dredger for MTCC to expedite land and lagoon dredging projects. The project to relocate the Malé Commercial Port to Thilafushi is being carried out under 100 percent state ownership, aiming for completion by November 2027. To ease convenience for fishermen and the general public, arrangements have been made to provide fuel at STO's official prices in 8 islands. As cost-reduction measures are being taken for state-owned enterprises, decisions have been made regarding Bank of Maldives flat works and prioritizing Maldivian businesses. Concerns have been revealed regarding high expenses and losses at Kulhudhuffushi Port. Coinciding with the December school holidays, Maldivian has decided to operate special direct flights between Malé and Bangkok every Tuesday from 8 December 2026 to 19 January 2027, with fares starting from 530 dollars.
In order to expedite the land reclamation projects carried out by MTCC, a decision has been made to bring in a brand new hopper dredger three times larger than the "Mahaa Jarraafu" used by the company so far. President Dr. Mohamed Muizzu has revealed that this vessel will be brought to the Maldives before the end of this year. The main objective of adding such a large dredger to MTCC's fleet is to complete land reclamation projects underway across the Maldives at a faster pace than now and achieve the government's development targets promptly. With the commissioning of this new dredger, MTCC's capacity to execute major land reclamation projects will be further strengthened.
On September 26, 2026, the government stated that it is swiftly proceeding with the repayment of state debts without disrupting any essential services provided to the public. According to the government, state financial obligations are being met and debts are being paid regularly in accordance with sound economic principles, ensuring no hardship is caused to public services or citizens' daily lives. Furthermore, the government has arranged mechanisms to maintain the country's financial stability and responsibly manage debt repayments.
On September 26, 2026, the President stated that major investors will arrive in the Maldives in the future. He made these remarks while speaking about the country's economic development and the opportunities available for foreign parties to invest in the Maldives. In addition, the President highlighted that the government is working to establish an enabling environment for major international businesses and investors. The President said that the investments arriving in the future will bring significant progress to the Maldivian economy.
To strengthen the governance of state-owned enterprises and reduce the burden on the state budget, a decision was made on 26 September 2026 to downsize company staff and take robust measures to cut costs. The main objective of these measures is to reduce waste in enterprise management, adhere to financially sustainable principles, and further enhance administrative governance. Following this decision, work has commenced to halt wasteful expenditures and review areas where redundant staff were hired. Furthermore, it was noted that these changes will boost corporate productivity and bring long-term favorable outcomes to public finances.
The national airline, Maldivian, has decided to launch special flights to Thailand's capital, Bangkok, coinciding with the upcoming December major holidays. According to information provided by Island Aviation, which operates the airline, these flights will run from December 8 to January 19 of next year, on Tuesdays of every week. Each passenger will receive a 25 kg baggage allowance on these flights, with return ticket prices starting from $530. Maldivian stated that the decision to operate these flights during the school holiday period was made with the aim of providing convenience to travelers, as demand from Maldivians traveling to Thailand increases extraordinarily during this time.
Kulhudhuffushi Port Limited has faced significant financial losses due to exorbitant staff expenses. High expenditure on employee salaries and allowances disproportionate to the company's revenue has been noted as the primary cause negatively affecting the company's financial operations and driving up losses. This issue highlights the necessity of taking measures to reduce the company's expenditures and secure financially sustainable solutions. Reports also indicate that to recover from losses, administrative costs must be controlled, and efforts to boost revenue from port services must be strengthened.
The latest updates and decisions regarding the mega project to relocate the Male' commercial port to Thilafushi were disclosed on 26 September 2026. Under this project, being implemented to find a permanent solution to the space constraints and congestion faced by Male' Port, significant steps have been taken toward establishing a modern international port in Thilafushi. It was noted that alongside this change, the Maldives' economic activities and import system will be further strengthened, and services will be expedited. Importance was given on this date to advancing works swiftly in accordance with the schedule set by the government to complete the project.
On 26 September 2026, significant steps were taken to advance the practical work on the flats scheduled to be built in Hulhumalé through the Bank of Maldives (BML). Under this project, these housing units being developed in Hulhumalé are being carried out with financial and administrative support from BML to provide convenient options for the public. The main objective of this is to proceed with the flat construction at the fastest possible pace and complete the works within the designated timeframe. It is expected that this project will provide an adequate solution to the housing shortage.
Speaking on PSM's "Nation Chat" podcast on 26 September 2026, the President stated that the country's reserves were raised to their highest level in history under this government. In this regard, he highlighted that the official reserves, which stood at $1.2 billion at the end of February this year, increased to a record $1.3 billion by the end of March. However, the President said the reserves were impacted by rising prices of oil and essential commodities due to the Middle East conflict, in addition to having to pay approximately $520 million at once for a Sukuk. Nevertheless, debts were paid on time without disrupting basic public services, saving the nation from bankruptcy, and the President also revealed that the Sovereign Development Fund, which held $2 million upon assuming office, has now grown to over $300 million.
The work to establish sheds that sell fuel at STO prices in 8 islands across 8 atolls of the Maldives was officially announced on 26 September 2026. The main objective of this project is to arrange for residents living in outer atoll islands, fishermen, and travelers to easily obtain fuel at the same price as in Malé. Once these sheds are established, it will provide significant relief to the economic activities of those islands and greatly assist in maintaining uniform fuel prices.
This policy, announced on 26 September 2026, is an important policy formulated with the objective of prioritizing capable Maldivian businesses in the nation's economic activities. Under this policy, priority is given to capable Maldivian companies and businesses in providing opportunities across various sectors in the Maldives, encouraging the expansion of their role. Moreover, this is a firm step taken to boost national productivity and empower Maldivian business owners.