The Maldives has used USD 525 million from the Sovereign Development Fund (SDF) and official reserves to repay a USD 500 million sukuk issued in 2021, including interest, Finance Minister Hassan Zareer has revealed.

Speaking on the 10th episode of the Ahaa forum, Zareer said USD 350 million was drawn from the SDF, while the remaining USD 175 million came from official reserves.

He said the Government had spent a total of USD 1.4 billion on debt repayments during its first two and a half years in office, up to 8 October.

Although 2026 has been a challenging year for debt repayments, Zareer said settling a significant portion of the country's debt this year would ease pressure on public finances in the coming years.

The minister also confirmed that the Government had repaid the remaining USD 50 million of a USD 150 million loan obtained from the State Bank of India (SBI), using the SDF earlier this year.

Zareer said Government revenue rose by 10 per cent in the first quarter of this year compared with the same period last year, indicating positive economic growth.

However, he noted that the ongoing conflict in the Middle East had pushed up global oil prices and increased travel and freight costs, placing additional pressure on the Maldivian economy.