'Grateful to PM Modi': Maldives thanks India for $50 million crucial budgetary support

The Maldives thanked the Indian government and Prime Minister Narendra Modi after New Delhi extended “crucial” budgetary support to Male by subscribing to its $50 million treasury bill.

Late on Thursday, the State Bank of India (SBI) subscribed the Maldivian government’s $50 million treasury bills for a period of one year from the date of the previous subscription, which was September 19, 2024.

“This strengthens the deep bond between our nations and reinforces our path towards economic stability and growth,” Tourism minister of Maldives, Ahmed Adeeb, said in a post on X.

Grateful to the Government of India and Prime Minister @narendramodi for extending crucial budgetary support to the Maldives with the rollover of the USD 50 million Treasury Bill.

This strengthens the deep bond between our nations and reinforces our path towards economic… https://t.co/FnkCCRfIFM

— Ahmed Adeeb (@Ahmed_Adeeb) September 19, 2024

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India extending a helping hand to the Maldives shows its bid to re-boost economic ties with the Indian Ocean archipelago nation which has shown a bent towards China after President Mohamed Muizzu’s victory in April.

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This is notably the second financial assistance to Male that comes amid signs of a thaw between India and Maldives. The ties between the two countries plunged to a new low after President Mohamed Muizzu came to power in the Maldives last year on the back of an “India Out” campaign.

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In May, the SBI, again at the request of the Maldivian government, had subscribed to treasury bills worth $50 million under the same mechanism.

These subscriptions were made by India at the special request of the Maldivian government as “emergency financial assistance,” the Indian High Commission in Maldives said in a statement.

“India has assisted the Maldives in times of need and the current subscription of T-bills, along with the government of India’s decision earlier this year of extending special quota for export of essential commodities for the Maldives by one more year reflect India’s continued support to the government and the people of the Maldives,” the statement further said.

The Indian side also described the Maldives as its key maritime neighbour and an important partner under India’s “Neighbourhood First” policy and Vision SAGAR (Security and Growth for All in the Region).

The Maldives is currently battling a serious economic downturn, with its revenues and foreign currency reserves massively being impacted by the COVID-19 pandemic and the fallout of the Russia-Ukraine conflict.  

As per data by the World Bank, much of the money the Maldives owes is to China and India, which have extended $1.37 billion and $124 million, respectively, in loans.

Relations between India and the Maldives began to improve after Muizzu attended Modi’s swearing-in as India’s PM for the third consecutive time in June this year.  

Also, Muizzu is expected to make a bilateral visit to India in the coming weeks.  

Sri Lanka on Muizzu’s anti-India stance

Sri Lanka is going to polls on September 21. Ahead of the keenly watched elections, Firstpost Managing Editor Palki Sharma spoke with Sri Lankan President Ranil Wickremesinghe who hinted at Muizzu having taken an anti-India stance in the Maldives to edge ahead in the elections.

Also Read: Muizzu’s anti-India stance was a poll gimmick? Sri Lanka president says ‘he told me…’

Wickremesinghe said he told Muizzu in 2023, to “go slow” on his approach towards India.

When asked if the Maldivian president took heed to his advice, the Sri Lankan president said, “He is certainly more friendly with India now.”

Wickremesinghe further said that Muizzu told him after the polls that regarding India “he had to make some promises in the election. That’s what he had to do.”

Talking about the relationship between Muizzu and PM Modi, Wickremesinghe said, “I was there in person when Modi was sworn in and I found the chemistry between them having really improved.”

With inputs from agencies.