Fitch Ratings has affirmed the Maldives’ sovereign credit rating at ‘CC’, citing strong tourism performance, rising foreign exchange reserves, and improved monetary cooperation with India.
Tourist arrivals rose 9.4 percent year-on-year as of June 10, 2025, supporting Fitch’s GDP growth forecast of 4.8 percent for the year. The Government expects further growth—up to 6.0 percent in 2026—with the full operationalization of Velana International Airport.
As of June 5, the Maldives recorded a fiscal surplus of USD 71 million, bolstered by higher revenue and tighter expenditure controls. Revisions to Airport Taxes, Green Tax, and Import Duties have also improved foreign currency revenue.
Fitch highlighted the need for a credible fiscal consolidation plan. In response, the Government is advancing a medium-term fiscal strategy focused on reducing inefficiencies in healthcare and energy, while accelerating the renewable energy transition through solar PV investments.
Foreign reserves rose to USD 856.3 million by April 2025, aided by monetary reforms and mandatory currency conversion rules under the Foreign Currency Act.
The Government reiterated its commitment to macroeconomic stability and timely debt servicing, noting that ongoing reforms aim to lower debt-to-GDP and strengthen investor confidence.
Tourist arrivals rose 9.4 percent year-on-year as of June 10, 2025, supporting Fitch’s GDP growth forecast of 4.8 percent for the year. The Government expects further growth—up to 6.0 percent in 2026—with the full operationalization of Velana International Airport.
As of June 5, the Maldives recorded a fiscal surplus of USD 71 million, bolstered by higher revenue and tighter expenditure controls. Revisions to Airport Taxes, Green Tax, and Import Duties have also improved foreign currency revenue.
Fitch highlighted the need for a credible fiscal consolidation plan. In response, the Government is advancing a medium-term fiscal strategy focused on reducing inefficiencies in healthcare and energy, while accelerating the renewable energy transition through solar PV investments.
Foreign reserves rose to USD 856.3 million by April 2025, aided by monetary reforms and mandatory currency conversion rules under the Foreign Currency Act.
The Government reiterated its commitment to macroeconomic stability and timely debt servicing, noting that ongoing reforms aim to lower debt-to-GDP and strengthen investor confidence.
