India has extended a significant financial lifeline to the Maldives, providing budgetary support of US$50 million. This support, facilitated through the State Bank of India (SBI) in Malé, comes in the form of a rollover of a $50 million Treasury Bill for an additional year, effective from 13 May.

The decision to extend the Treasury Bill was made in response to a request by the Maldivian Foreign Minister to his Indian counterpart, Dr Subrahmanyam Jaishankar. The request was made during an official bilateral visit to India from 8 to 10 May 2024.

The Maldives’ foreign ministry, in a statement, expressed the government’s deep gratitude for the continued financial support from the Indian government. This support has enabled the implementation of numerous infrastructural and high-impact community development projects, it said. A significant portion of these projects is funded through grant assistance from the Indian government.

The Maldivian government is optimistic about the continuation of this collaborative partnership, which it believes will bring mutual benefits and prosperity to the people of both nations, the ministry said.

The High Commission of India in the Maldives confirmed that the SBI has agreed to subscribe for one more year to the US$50 million government Treasury Bill issued by the Maldives’ finance ministry. This unique government-to-government arrangement is provided interest-free to the Maldives, according to the high commission.

Foreign Minister Moosa Zameer expressed his gratitude to the Indian Government for extending this vital budgetary support. “This is a true gesture of goodwill, which signifies the longstanding friendship between the Maldives and India,” he said.