The Government of the Maldives has repaid more than USD 1 billion in debt and maintained a fiscal surplus during the first 40 weeks of the year, according to the Ministry of Finance.

Speaking at a ceremony held to hand over 206 government projects to 53 private companies, Finance Minister Moosa Zameer said the administration inherited a fragile economy but has since taken deliberate measures to place it on a stronger and more sustainable footing.

The Minister noted that the government’s fiscal discipline and repayment of both principal and interest on external loans have contributed to improved economic stability. He added that the budget deficit is projected to fall to single digits by 2025 — a milestone not achieved in many years.

According to the Finance Ministry, the current administration restructured the Sovereign Development Fund (SDF), which was previously used to finance budget shortfalls, and redirected it towards strengthening foreign currency reserves. The fund now reportedly holds over USD 100 million in cash.

The state’s revenue is also expected to rise to 32 per cent of GDP this year, reflecting the positive impact of responsible fiscal management and stronger economic activity. The government believes this turnaround has helped restore international confidence in the Maldivian economy and secure debt relief from partner countries.

Minister Zameer also highlighted that the administration continues to prioritise efficiency by awarding development projects to companies with proven capacity to deliver, ensuring sustained progress across key sectors.