Why is Maldives Thanking India for $50 Million Support?

Male, May 12 (NationPress) The Maldives expressed its heartfelt appreciation to India on Monday for providing a $50 million Government Treasury Bill, which has significantly bolstered the island nation's fiscal reform initiatives aimed at achieving economic stability.

Maldivian Foreign Minister Abdulla Khaleel conveyed his gratitude to External Affairs Minister (EAM) S. Jaishankar and the Indian government for this timely financial aid.

"I extend my sincere thanks to EAM S. Jaishankar and the Government of India for their vital financial support to the Maldives through the rollover of the $50 million Treasury Bill. This timely assistance exemplifies the strong ties of friendship between the Maldives and India and will aid in the government’s ongoing efforts to implement fiscal reforms for economic resilience," Khaleel shared on X.

At the request of the Maldivian Government, the State Bank of India (SBI) has agreed to subscribe for an additional year to the $50 million Government Treasury Bill issued by the Ministry of Finance of the Maldives, as stated in a press release from the High Commission of India in the Maldives.

"Since March 2019, the Government of India has been facilitating the subscription of several such Treasury Bills by the SBI and rolling them over annually, interest-free, to the Maldives. This is part of a unique Government-to-Government arrangement designed as emergency financial support for the Maldives," it added.

India views the Maldives as a crucial maritime neighbor and a significant partner in its 'Neighbourhood First' policy and the Vision 'MAHASAGAR' – Mutual and Holistic Advancement for Security and Growth Across Regions.

"India has been a steadfast ally of the Maldives in times of need. The subscription of this Treasury Bill, along with India’s earlier decision this year to extend a special quota for essential commodity exports to the Maldives, showcases India’s unwavering support to the Maldivian government and its people," it further stated.

In February, the Ministry of External Affairs (MEA) allocated Rs 5,483 crore for international aid, slightly above last year's Rs 4,883 crore, as announced in the Union Budget for 2025-26.

The Maldives saw the largest increase in assistance, rising from Rs 470 crore in the revised 2024-25 budget to Rs 600 crore in 2025-26.

In January, EAM Jaishankar stated during a meeting with Abdulla Khaleel that the Maldives embodies a "concrete expression" of India’s 'Neighbourhood First' policy and that New Delhi has consistently supported the Indian Ocean archipelago, especially in providing financial assistance during challenging times.

"We have expanded our engagements across various sectors, and I want to stress that India has always stood by the Maldives. You are a tangible expression of our 'Neighbourhood First' policy," stated EAM Jaishankar.

Khaleel acknowledged the timely financial assistance provided by India during emergencies, underscoring India’s role as the "First Responder" for the Maldives.

He reiterated the Maldivian Government’s strong commitment to collaborate closely with the Indian Government in realizing the Joint Vision for the India-Maldives Comprehensive Economic and Maritime Security Partnership.