The government has raised MVR 3.8 billion through the sale of Treasury bills (T-bills) to finance state expenses, according to figures released by the Ministry of Finance.
A total of four T-bills were issued. The largest — valued at MVR 2.8 billion — is set to mature on 29 June next year. Three other short-term bills include MVR 920 million due on 28 July, MVR 55 million due on 6 October, and MVR 60 million maturing on 29 December this year.
Interest rates on T-bills range from 3.50% to 4.60%, the ministry said.
T-bills are short-term government debt instruments used to manage cash flow and fund operational expenses. They are typically bought by the Maldives Pension Administration Office, local banks, and state-owned enterprises. Some private firms also participate in these sales.
The sale comes at a time of growing fiscal pressure. Latest figures from the Maldives Monetary Authority (MMA) show that official reserves fell by US$40.5 million in May, dropping to US$815.8 million from US$856.3 million in April.
Despite the decline in gross reserves, the central bank noted that usable reserves — foreign currency holdings readily available for external payments — rose from US$171.3 million in April to US$217.8 million in May. Figures for June have not yet been published.
The Maldivian economy is under growing pressure from global and domestic challenges. Credit rating agencies Moody’s and Fitch have assigned high-risk ratings of ‘Caa2’ and ‘CC’ respectively, citing concerns over debt sustainability.
Inflation remains high. Consumer prices rose 4.55% in May compared to the same month last year, according to latest data from the National Bureau of Statistics. On a monthly basis, inflation increased by 0.48%.
Electricity prices recorded the highest annual jump at nearly 13%. Smaller price increases were seen in fruit, seafood, and dairy, driven by international trends and limited local supply. Meanwhile, prices fell for vegetables, fish, mobile services, and water supply.