The Maldives’ Sovereign Development Fund (SDF) stood at MVR 7.4 billion at the end of September this year, according to the Ministry of Finance. The 2024 National Budget report shows that this amount also includes US$124.7 million.

The ministry has estimated that the fund is expected to reach a total of MVR 9.7 billion by the end of 2024, as the SDF continues to receive revenue from the airport development fee and cross-subsidy proceeds.

The fund has already received MVR 4 billion from airport development fees, MVR 1.4 billion from cross-subsidies, and an additional MVR 2 billion from other sources.

According to the 2024 Budget, in 2025 and 2026, funds will be withdrawn from the SDF to repay part of the national debt. The fund will transfer MVR 3.8 billion towards budget financing in 2025 and 2026.

The SDF was established in 2017 with the objective of providing a financial cushion to facilitate the repayment of unforeseen state loans or debts and to negate any possible economic volatility when making significant repayments on development loans.

With the most recent amendment to the State Finance Act this year, the President has the authority to decide from which sources to draw money to the SDF and how to deploy funds, on the advice of the Minister of Finance, while the fund will be managed by the Ministry of Finance.

The SDF was previously managed by the nation’s central bank; the Maldives Monetary Authority (MMA).