India has approved the rollover of a ₹30 billion currency swap facility for the Maldives, reaffirming its support for the island nation’s financial stability. The facility was extended under the SAARC Currency Swap Framework agreed between the Reserve Bank of India (RBI) and the Maldives Monetary Authority during Maldivian President Mohamed Muizzu’s state visit to India in October 2024.
The first ₹30 billion drawdown under the arrangement was provided to the Maldives on April 23, 2026.
India’s currency swap support for Maldives
Under the bilateral currency swap framework for 2024–27, the facility offers concessional terms, including favourable interest rates and other conditions. Since the framework was introduced in 2012, the Reserve Bank of India (RBI) has extended cumulative currency swap support of over $1.1 billion to the Maldives.
A currency swap arrangement allows countries to access funds in a foreign currency, helping meet liquidity needs and support macroeconomic stability.
India’s support through Treasury securities
Beyond the currency swap facility, India has also supported the Maldives through investments in government securities.
According to the Indian High Commission, India subscribed to long-term Maldivian Treasury bonds worth $250 million and $100 million. The Maldives has since redeemed three Treasury bills worth $150 million that India had subscribed to, while the Government of India paid $42.8 million towards the interest on these securities.
The Indian government said its support through currency swaps, Treasury bonds and Treasury bills has played a key role in maintaining the Maldives’ financial stability.
India-Maldives economic partnership
The latest decision comes as India continues to strengthen its economic and strategic engagement with the Maldives, its neighbour in the Indian Ocean.
The Indian government said the Maldives holds a special place under its Neighbourhood First Policy and its MAHASAGAR vision, which stands for Mutual and Holistic Advancement for Security and Growth Across Regions.
India reiterated its commitment to deepening bilateral relations with the Maldives through the implementation of the Joint Vision for a Comprehensive Economic and Maritime Security Partnership, adopted during President Muizzu’s visit to India in October 2024.
