Finance Minister Hassan Zareer has said the government is seeking assistance from the World Bank and other international partners to address economic challenges caused by higher fuel prices and weaker tourism receipts.
In an interview with Reuters, Zareer noted that the Maldives, as an oil importer, has been affected by elevated global fuel costs linked to conflicts in the Middle East. Energy subsidy spending has risen sharply, and the projected budget deficit has increased from an earlier estimate of 7.1 per cent to around 9 per cent. Economic growth for 2026 is now expected to be as low as 1 per cent.
The minister said plans are under way to lease additional aircraft for the national airline and to increase flights to Australia, currently the eighth-largest source market. Negotiations are also continuing with several other airlines to raise frequencies.
Moody’s recently upgraded the Maldives’ sovereign rating from Caa2 to Caa1, citing progress on debt obligations. Zareer indicated that foreign support would help strengthen reserves and advance reforms while the government manages the immediate shocks.
Tourism remains the mainstay of the economy, and any sustained shortfall in arrivals has rapid effects on revenue and foreign exchange.
