India has approved the Maldives government’s request to roll over a Rs 30 billion currency swap facility to help the island nation meet its short-term liquidity needs and maintain financial stability. The High Commission of India in the Maldives announced this decision on October 16, reiterating New Delhi’s commitment to its ‘Neighbourhood First’ policy and to strengthening bilateral relations.
This facility operates under the SAARC Currency Swap Framework 2024–27. The framework was signed between the Reserve Bank of India (RBI) and the Maldives Monetary Authority in October 2024, during the visit of Maldivian President Mohamed Muizzu to India. Under this arrangement, the Maldives made its first withdrawal of 30 billion rupees on April 23, 2026.
Under the framework, the Maldives receives access to Indian rupees on favourable terms. Since the framework was introduced in 2012, India has provided more than $1.1 billion in aggregate currency swap support to the Maldives.
India has also subscribed two long-term treasury bonds from the Maldives, valued at USD 250 million and USD 100 million. According to an official statement, the Maldives has repaid three treasury bills worth USD 150 million, with the Government of India covering USD 42.8 million in interest costs.
India stated that this financial assistance is part of its broader commitment to strengthening economic cooperation and maritime security with the Maldives, under its MAHASAGAR vision and the ‘Joint Vision for a Comprehensive Economic and Maritime Security Partnership’ adopted in October 2024.
(High Commission of India)
