Maldives had made a special request to secure budgetary support from India
In a goodwill gesture, the Indian government has once again extended its support to the Maldives by providing a budgetary aid package worth USD 50 million. This support comes in the form of a rollover of a Treasury Bill for an additional year, facilitated by the State Bank of India (SBI). The decision to extend this financial assistance was made in response to a request from Maldivian Foreign Minister Moosa Zameer during his recent official visit to India from May 8-10, 2024.
In a statement, the Indian High Commission in the Maldives announced, "State Bank of India has subscribed for one more year the USD 50 million Government Treasury Bill, issued by the Ministry of Finance of Maldives, upon maturity of the previous subscription. These Government Treasury Bills are subscribed by SBI under a unique Government-to-Government arrangement at zero-cost (interest-free) to the Government of Maldives."
"The continuation of subscription has been made at the special request of the Government of Maldives to secure budgetary support from the Government of India," the statement added.
Maldivian Foreign Minister Moosa Zameer expressed his gratitude towards India in a tweet, stating, "I thank EAM @DrSJaishankar and the Government of #India for extending vital budgetary support to Maldives with the rollover of USD 50 million Treasury Bill. This is a true gesture of goodwill which signifies the longstanding friendship between #Maldives and #India”
The Maldives' government also released an official statement acknowledging the generous support from India. "The Government of Maldives is highly appreciative of the generous support that the Government of India has been providing to the Maldives in the form of budgetary support. A large number of infrastructural developmental projects and High Impact Community Developmental projects are underway with the assistance from the Government of India, which consists of a notable part as grant assistance."
This latest financial assistance comes amid a backdrop of evolving diplomatic relations between the two nations. The political landscape in the Maldives was seen to have shifted with the pro-China President Mohamed Muizzu's People's National Congress (PNC) gaining a majority in the Parliament. President Muizzu had asked India to withdraw Indian military personnel, tasked with operating aviation platforms in the country, by May 10, 2024. India has since replaced them with civilian personnel.
Despite these happenings, India's commitment to the Maldives remains steadfast. The Maldives, known for its stunning coral islands and luxury resorts, relies heavily on tourism. The support from India is seen as crucial for the Maldives' economic stability, especially in the face of political uncertainties and external pressures.

The Maldives government also remains optimistic about continuing its partnership with India. "The Government of Maldives looks forward to continuing this collaborative partnership for the mutual benefit and prosperity of their people," the statement said.
This latest financial support from India is expected to aid ongoing and future projects aimed at infrastructure development and community welfare in the Maldives. As the country navigates its political and economic challenges, the support from India serves as a pillar of stability and a testament to the enduring relationship between the two nations.