In the statement, the Finance Ministry noted that the latest rating reflected the strong performance of the tourism sector, the expansion of foreign exchange reserves following recent monetary reforms, and the effective use of the currency swap facility between the Reserve Bank of India and the Maldives Monetary Authority (MMA).
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On 12 June 2025, the Ministry of Finance and Planning published a statement in regards to the latest Fitch Ratings which has reaffirmed the Maldives' sovereign credit rating at 'CC'. In the statement, the Finance Ministry noted that the latest rating reflected the strong performance of the tourism sector, the expansion of foreign exchange reserves following recent monetary reforms, and the effective use of the currency swap facility between the Reserve Bank of India and the Maldives Monetary Authority (MMA).
In addition to the positive outcomes of the currency swap, the latest rating also highlights that the tourism industry of the Maldives continues to be a major growth driver. The latest statistics show that tourist arrivals continue to be on the increase by 9.4 percent year-on-year as of 10 June 2025. This supports Fitch’s projected GDP growth of 4.8% percent in 2025. With the full operationalization of Velana International Airport expected within the year, the Government anticipates sustained real sector strength, with GDP growth projected at 6.0 percent in 2026.
Additionally, the statement also shed light on the overall fiscal surplus as of June, highlighting some of the new fiscal measures behind the revenue mobilization.
As of 5 June 2025, the Government recorded an overall fiscal surplus of USD71.0 million, driven by robust revenue performance and expenditure rationalization through strict budgetary controls. New fiscal measures—including revised rates for Airport Taxes and Fees, Green Tax, and Import Duties—have significantly enhanced revenue mobilization, especially for those denominated in foreign currency.
Recognizing the need for a credible fiscal consolidation strategy, as emphasized by Fitch Ratings, the Ministry also noted that the Government is implementing a comprehensive reform agenda as part of its medium-term fiscal strategy. This includes rationalizing public spending by reducing inefficiencies and wastage in sectors such as healthcare and energy generation. Furthermore, the statement also noted that the Government is fast-tracking the renewable energy transition through large-scale solar PV investments using innovative financing mechanisms. These efforts are expected to yield significant fiscal and external savings while supporting clean energy targets and addressing climate vulnerabilities.
The successful implementation of current and planned structural reforms will improve productivity, boost investor confidence, and maintain the public debt-to-GDP ratio on a firm downward path as per the Government’s medium-term debt strategy.
Fitch’s rating decision also reflects positively on the notable improvement in foreign currency reserves, following the enactment of the Foreign Currency Act and the introduction of mandatory exchange requirements for tourism-related businesses at the start of 2025.
The positive implications of these changes were highlighted by the Ministry in its statement.
These monetary reforms have raised Official Reserve Assets to USD856.3 million as of April 2025, with expectations for further growth in the medium term.
