Nasheed says paying sukuk without new borrowing is 'encouraging'

Former President and former Speaker Mohamed Nasheed has described the government’s repayment of the 2021 sukuk without taking on additional debt as “very encouraging”.

In a post on social media on Thursday evening, Nasheed said the government had managed to settle a major financial obligation without borrowing further.

The government announced earlier in the day that it had repaid the USD 525 million sukuk issued by the previous administration. According to the Ministry of Finance, a total of USD 524.68 million was paid, comprising the USD 500 million principal and USD 24.68 million in coupon payments. The amount is equivalent to roughly MVR 8 billion.

The repayment was made using the Sovereign Development Fund (SDF) and the state’s official reserves. Financial experts say the move is an important step in maintaining the Maldives’ financial credibility in international markets.

The Finance Ministry said the settlement will help reduce government debt as a share of GDP and is expected to strengthen the financial sector and support medium‑term economic stability.