India has once again extended critical financial support to its maritime neighbor, the Maldives, by rolling over a USD 50 million Treasury Bill, the High Commission of India in Maldives announced on Monday. This move underscores New Delhi’s sustained commitment to its ‘Neighbourhood First’ policy and deepening economic and strategic partnership with the island nation.
The Treasury Bill, subscribed by the State Bank of India (SBI) for another year at zero interest, comes as part of a unique government-to-government emergency financial assistance arrangement. It was initiated in March 2019 and has been renewed annually since, serving as a stabilizing financial tool for the Maldives.
In a post on X, the High Commission stated, “India extends financial support to the Maldives through the rollover of the USD 50 million Treasury Bill.” The move followed a formal request from the Maldivian government, as the country continues implementing fiscal reforms aimed at boosting economic resilience.
Maldivian Foreign Minister Abdulla Khaleel expressed heartfelt thanks to India, saying, “This timely assistance reflects the close bonds of friendship between Maldives and India and will support the Government’s ongoing efforts to implement fiscal reforms.”
Beyond the Treasury Bill, India has extended other vital support this year, including a special quota for essential commodity exports to the Maldives, highlighting its role as a dependable partner in the region. These efforts align with India’s broader vision of ‘MAHASAGAR’ (Mutual and Holistic Advancement for Security and Growth Across Regions).
The financial rollover also echoes commitments made during President Mohamed Muizzu’s visit to India, where Prime Minister Narendra Modi reiterated India’s steadfast support for the Maldives’ development and priorities.
As tensions in the Indo-Pacific and economic uncertainties loom large, India’s consistent backing serves as both a financial cushion and a strategic reaffirmation of the enduring ties between the two nations.
