President Mohamed Muizzu on Wednesday expressed strong support for the Debt Sustainability Support Service (DSSS), calling it a vital instrument to address the worsening debt and climate financing challenges facing Small Island Developing States (SIDS).
Speaking as Co-Chair of the Strategic Advisory Group of the SIDS, Muizzu said the operationalisation of the DSSS “will undoubtedly serve as a catalyst for a new era of sustainable development” across vulnerable island nations.
In his speech, Muizzu said a significant number of SIDS were either already in debt distress or nearing it, while also grappling with urgent climate financing needs. Achieving debt sustainability, he said, was critical to meeting the resilient development goals set out in the Antigua and Barbuda Agenda for SIDS.
He stressed the urgency of putting the DSSS into operation, stating that solving debt-related issues was central not only to sustainable development but also to addressing “the interlinked challenges of climate change, environmental degradation, and pollution.”
The Maldives, like many low-lying island nations, is already facing rising sea levels, coastal erosion, and increasing saltwater intrusion into its freshwater supply. Around 80% of Maldivian land area lies less than one metre above sea level, making it one of the most climate-vulnerable countries in the world.
In 2019, the Maldives launched the Climate Smart Resilient Islands Initiative to build model communities that integrate climate resilience into development planning. However, such initiatives have so far failed to get off the ground due to limited access to global climate finance. Of the US$100 billion pledged to developing nations, SIDS collectively received just US$1.5 billion, according to a 2023 report by the United Nations Conference on Trade and Development (UNCTAD).
The president warned that shifting global dynamics require more inclusive and multilateral solutions. He pointed to a Maldivian proposal for a “debt-relief-for-resilience-building mechanism” as one such solution, offering debt relief to countries that invest in resilience.
Muizzu said the initiative would help “create fiscal space for investment in sustainable development by linking debt relief to resilience-building milestones.” He advocated for a country-led approach, which “takes into account the unique circumstances and sensitivities of each nation.”
Environmental experts have warned that climate-induced risks—such as flash flooding, coral bleaching, and internal displacement—continue to threaten both the ecosystems and economies of SIDS. Coral degradation, a consequence of ocean warming and acidification, has further strained livelihoods in tourism and fishing, two key sectors for the Maldives.
The president called the upcoming Fourth International Conference on Financing for Development (FfD4) a “golden opportunity” to rally global support for the DSSS, adding that international cooperation and participation are essential to scaling up the implementation of innovative debt mechanisms and concessional finance.
Muizzu concluded his speech by highlighting the human cost of inaction, saying that “debt sustainability is not merely a matter of figures—it is about protecting lives, safeguarding livelihoods, and securing our collective future.”
SIDS comprise 38 United Nations member states and 20 non-UN members or associate members of regional commissions. The Maldives co-chairs the Strategic Advisory Group alongside Antigua and Barbuda.