New Delhi: The Maldives Thursday completed the repayment of the $150 million owed to India through the facility extended by the State Bank of India (SBI) in 2019. The third and final tranche of $50 million was settled on 17 September, marking the end of India’s consistent rolling over of the loan for the better part of the last two years.
“Today, we completed repayment of the $150 million borrowed through State Bank of India in 2019, settling the final $50 million installment. Under the leadership of President Dr. Mohamed Muizzu, our Government continues to manage debt responsibly through advance planning and regular contributions to the Sovereign Development Fund. Arrangements for uninterrupted imports of fuel, staple foods and medicines remain fully secured,” Hassan Zareer, the Finance Minister of the Maldives, said in a statement on the micro-blogging platform X.
The SBI Treasury Bill (T-Bill) was set to mature this week. In the past India has rolled over the repayments, allowing Malé further time to repay the T-Bill, which was originally extended to the previous government led by Ibrahim Solih in 2019.
The loan was extended as an emergency measure to help support the budget of the Maldives and was originally worth roughly $200 million. The Muizzu administration made the first repayment in January 2024, within months of assuming power at the end of 2023.
Today, we completed repayment of the $150 million borrowed through State Bank of India in 2019, settling the final $50 million instalment.
Under the leadership of President Dr. @MMuizzu, our Government continues to manage debt responsibly through advance planning and regular…
— Hassan Zareer (@Finance_Min_MV) September 17, 2026
India had announced that $50 million of the overall amount was lent as a grant and does not require any repayment, leaving around $100 million in repayments that have dogged the Muizzu administration for the better part of the last couple of years. India announced the first rollover of the $50 million T-Bill in May 2024, while the second bill was also extended in September 2024.
The same process continued through 2025. Earlier this year on 11 May, the Maldivian government repaid $50 million, before the T-Bill matured, bringing down the owed money to India to $50 million.
The last repayment was cleared Thursday.
At the same time, the Maldives has seen its guaranteed external debt fall to $3.59 billion as of the second quarter of this year, in comparison to $4.05 billion at the end of its 2025 fiscal year, showcasing Malé’s efforts to pay down its external debt.
“The Ministry of Finance noted it has taken measures including regular deposits into the Sovereign Development Fund, making financial arrangements well ahead of debt-repayment deadlines, and maintaining dialogue with international financial institutions and development partners — steps taken to strengthen the country’s foreign exchange reserve position and to ensure continued liquidity of foreign currency to meet obligations such as this repayment,” the Ministry of Finance of the Maldives said in a statement.
The statement added: “Arrangements have been made to ensure the continued, smooth availability of foreign exchange needed for essential imports—including oil, food items, and medicine—even after this repayment, and that necessary steps continue to be taken to maintain adequate reserve levels for such needs.”
The latest repayment would bring Maldives’ foreign exchange reserves to an amount below $600 million this month, which would leave it with a little over a month and half of foreign exchange reserves. The foreign exchange reserves of the country stood at $643.8 million at the end of August, according to data published Maldivian Monetary Authority (MMA).
Its total import bill for July 2026 was $339.26 million, as per data published by the MMA. The country’s foreign exchange reserves have been under consistent pressure in recent years. The country relies heavily on imports to keep its economy ticking. It has seen a slight increase in its import bills since April as the war in West Asia has led to a surge in oil prices globally.
Malé’s import bill in April 2026 stood at $426.1 million, which was the single largest monthly import bill since 2004, according to data published by the MMA. In June 2026, Maldives’ imported goods worth roughly $386 million, highlighting the sustained increase in values of imports over the four-month period till July 2026.
The country exported roughly $36.7 million worth of goods in July 2026, showcasing the large trade deficit, which impacts its foreign exchange reserves. The country’s foreign exchange reserves hit roughly $1.3 billion in March 2026, before falling to its current level of $643.8 million in August.
(Edited by Amrtansh Arora)