Foreign Minister Downplays Economic Challenges, Rules Out IMF Assistance

The Minister of Foreign Affairs Moosa Zameer has stated that the country’s current economic difficulties are temporary, and there are no immediate plans to seek assistance from the International Monetary Fund (IMF).

During his visit to Sri Lanka, where he was joined by Finance Minister Dr Mohamed Shafeeq for meetings with the Central Bank and other officials, Zameer expressed confidence in the Maldives’ ability to manage its financial challenges. He emphasised that the Maldives has international partners who are committed to providing support, adding that bilateral partners are sensitive to the nation’s needs and situation.

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Zameer dismissed the notion of seeking help from the IMF, stating that the financial issue facing the country is temporary, driven by a dip in reserves. He expressed optimism that liquidity would improve as the government implements changes to taxation and cost-cutting measures for state-owned enterprises.

In addition to addressing economic concerns, Zameer also commented on the diplomatic relationship between the Maldives and India. He explained that recent tensions between the two countries had been resolved following the repatriation of Indian troops from the Maldives. He highlighted the government’s strong relations with both China and India, noting that both countries continue to provide support to the Maldives.

Zameer’s visit to Sri Lanka came shortly after Moody’s downgraded the Maldives’ credit rating to Caa2, signalling high credit risk. This followed a similar downgrade by Fitch in June, which cited concerns over dwindling foreign currency reserves. Despite these warnings, the government remains confident in its ability to improve reserves and meet debt obligations.

The Maldives’ reserves currently stand at USD 444 million, with USD 61 million in usable reserves.