India Approves Rs 30 Billion Swap For Maldives, Boosts Economic Stability

Last Updated:April 29, 2026, 11:50 IST

The Maldives Foreign Ministry said the repayment reflected the government’s commitment to honouring its financial obligations.

India has cleared a Rs 30 billion drawdown for the Maldives under the SAARC Currency Swap Framework, the Indian High Commission in Male said on Thursday, underscoring New Delhi’s continued financial support to the island nation.

The approval coincided with the Maldives settling a $400 million swap facility that it had availed in October 2024 under the US Dollar/Euro Swap Window of the bilateral arrangement between the Reserve Bank of India and the Maldives Monetary Authority (MMA).

The Maldives Foreign Ministry said the repayment reflected the government’s commitment to honouring its financial obligations.

The newly approved Rs 30 billion facility has been extended under the INR Swap Window of the ‘Framework on Currency Swap Arrangement for SAARC Countries, 2024-2027’. This agreement had been signed between the RBI and the MMA during President Mohamed Muizzu’s visit to New Delhi in October 2024.

According to the Maldives Foreign Ministry, the funds will aid the government’s efforts to strengthen economic stability, particularly in the context of developments in West Asia.

The INR Swap Window, it said, offers favourable terms designed to improve access and efficiency for recipient countries.

Since the launch of the SAARC Swap Framework in 2012, the RBI has provided total swap assistance of $1.1 billion to the Maldives. The Indian High Commission noted that such arrangements have played a key role in supporting the country’s financial stability, especially during periods of external pressure.

Reaffirming bilateral ties, the High Commission said the Maldives continues to be an important partner under India’s ‘Neighbourhood First’ policy and Vision MAHASAGAR.

“India, as a friendly neighbour, has always been the ‘first responder’ for the Maldives," the statement said.

Welcoming the development, the Maldives Foreign Ministry described the approval as a reflection of the strong and enduring partnership between the two countries. It also highlighted India’s role in promoting regional financial cooperation through the SAARC framework.

The currency swap mechanism allows the Maldives to access foreign exchange during liquidity constraints, reducing dependence on commercial borrowing while helping manage balance-of-payments pressures and maintain macroeconomic stability. For India, the facility forms part of a broader effort to deepen economic ties with neighbouring countries.

Officials in Male said the latest support is expected to provide immediate relief to foreign exchange reserves and assist in stabilising the economy amid global uncertainties.

With rising geopolitical tensions in West Asia, the timely assistance is being viewed as important for maintaining investor confidence and ensuring smooth external payments.

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