The Indian Government has extended a financial package worth USD 250 million to the Government of Maldives.

The financial support was extended to the Government of Maldives in meeting the Government’s financing gap, and support the Government’s efforts in responding to COVID-19.

The financial assistance was announced during a Digital Video Conference held today, between the Minister of Foreign Affairs of Maldives Abdulla Shahid and Minister of External Affairs of India Dr. Subrahmanyam Jaishankar.

The meeting also reviewed progress on the ongoing development projects between the two countries. In this context, the two ministers acknowledged the good progress being made on the projects that are being considered under the 800 million US Dollar Line of Credit. The 800 million US Dollar Line of Credit was announced during the State Visit of President Ibrahim Mohamed Solih to India in December 2018, for which the Agreement was signed between the Indian Export Import Bank and the Ministry of Finance in March 2019. Several key infrastructure projects are currently being considered for financing under the Line of Credit. Both Ministers agreed to work towards further accelerating implementation on these key infrastructure projects.

Minister Jaishankar also confirmed the renewal of the quotas for the import of essential commodities from India to the Maldives. These essential commodities include rice, sugar, flour, onions, potatoes, eggs, dhal, stone aggregates and river sand. Minister Jaishankar further noted that the quota approved is larger than the amount approved last year, which he hoped would help ensure predictability of imports during this difficult time.

Minister Shahid thanked the Government of India for renewing the quota for this year for all the essential commodities and for the uninterrupted supply of essential items during the pandemic and for the special exemptions made for the Maldives in this regard.

On 1 November 2020, the Maldives and India will celebrate 55 years since the establishment of formal diplomatic relations between the two countries. Both countries share traditionally strong and friendly ties, enjoy a strong developmental partnership, and vibrant people-to-people connections, nurtured by geographical proximity, ethnic, historic, socio-economic, and cultural ties.

At the meeting, both Ministers acknowledged that the relationship has undergone a significant revitalization and experienced renewed dynamism since President Ibrahim Mohamed Solih assumed office.

They agreed that the frequent exchanges at the highest levels, ministerial visits, and a record number of agreements have resulted in an expanded scope of cooperation between the two countries, towards the mutual benefit of both peoples.