India has approved the Maldivian government’s request to roll over a ₹30 billion (approximately US$320 million) currency swap facility, extending financial support as the country manages its foreign currency requirements and debt obligations.
The High Commission of India in Malé confirmed the decision in a press release on Thursday, stating that the facility was initially extended to the Maldivian government on April 23, 2026, under the currency swap framework agreed between the Reserve Bank of India (RBI) and the Maldives Monetary Authority (MMA).
The rollover follows the government’s request for an extension ahead of the facility’s October maturity. Local reports say that the facility was due to mature on October 22, and earlier this week that India had agreed to a three-month extension. The High Commission’s latest statement confirms approval of the rollover but does not specify the revised maturity date.
The currency swap arrangement was established under the SAARC Currency Swap Framework for 2024–2027, signed during President Dr Mohamed Muizzu’s state visit to India in October 2024. The agreement allows the Maldives to access up to US$400 million under the US dollar/euro window and ₹30 billion under the Indian rupee window.
The current facility was activated on April 23 after the Maldives settled a separate US$400 million currency swap previously obtained from India in October 2024. The new rupee-denominated facility was intended to support the government’s broader efforts to maintain economic stability amid external financial pressures.
A currency swap facility provides access to funds under agreed financial terms and can help a country manage short-term foreign exchange and balance-of-payments pressures. Unlike a grant, however, it carries repayment obligations. A rollover extends the existing arrangement rather than necessarily providing an additional sum of money.
The latest extension comes amid continuing pressure on the Maldives’ public finances and foreign currency requirements. In September, the government made a US$50 million payment towards an outstanding US$150 million Treasury-bill budgetary support package secured through the State Bank of India in 2019.
The High Commission said the RBI has provided more than US$1.1 billion in aggregate currency swap support to the Maldives since the SAARC framework was introduced in 2012.
India has also subscribed to two long-term Maldivian Treasury bonds worth US$250 million and US$100 million. In addition, the Maldives has settled three Treasury bills totalling US$150 million that were subscribed to by India, with the Indian government paying US$42.8 million towards the interest incurred, according to the High Commission.
The Indian rupee facility operates under a framework that offers concessions, including favourable interest rates and other conditions. However, the High Commission has not disclosed the specific financial terms of the latest rollover.
India said the decision reflects its continued commitment to the Maldives under its ‘Neighbourhood First’ policy and Vision MAHASAGAR, which stands for Mutual and Holistic Advancement for Security and Growth Across Regions.
The High Commission also reaffirmed India’s commitment to strengthening bilateral ties 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.
