Maldives President Mohamed Muizzu expressed gratitude towards India and China for their assistance in easing the country’s debt repayment, highlighting India’s role during the Maldives’ Independence Day celebrations.
He praised his administration’s diplomatic achievements over the past eight months and emphasized the importance of foreign policy in securing economic sovereignty for the nation. Muizzu mentioned ongoing negotiations for currency swap agreements with both New Delhi and Beijing to address local shortages of US dollars.
President Muizzu announced that his government is negotiating a Free Trade Agreement (FTA) with the United Kingdom and aims to establish a similar agreement with India. This statement came amid efforts to mend diplomatic relations that had deteriorated in recent years. Muizzu’s presence at Indian Prime Minister Narendra Modi’s oath ceremony signaled a move toward reconciliation after a period of strained ties between the two countries.
Maldives President Muizzu Acknowledges India and China for Debt Relief, Pursues New Trade Deals
The Maldives has faced significant debt challenges, with loans to India amounting to 6.2 billion Maldivian Rufiyaa by the end of last year. The International Monetary Fund (IMF) had previously warned the Maldives about the high risk of debt distress without substantial policy changes. Despite these financial challenges, Muizzu has expressed a strong commitment to maintaining India as the Maldives’ closest ally.
Notably, Muizzu’s administration has exhibited ‘anti-India’ rhetoric in the past, with the ‘India Out’ campaign playing a significant role in his election strategy.
His government requested the withdrawal of Indian troops, which was completed in May this year, and declined to renew a Hydrographic Survey agreement with India. This shift in policy marks a significant departure from previous administrations’ approaches to India-Maldives relations.
Diplomatic tensions escalated when three Maldivian deputy ministers made derogatory comments about Prime Minister Modi, leading to their suspension. The fallout included a decline in Indian tourism to the Maldives by 33% compared to the previous year. Despite these challenges, Muizzu’s recent efforts suggest a potential for renewed collaboration and strengthened ties between the Maldives and India.
