India has extended a financial lifeline to the Maldives by rolling over a USD 50 million Treasury Bill for another year, demonstrating its continued support for its key maritime neighbor. The Indian High Commission in the Maldives announced on Thursday that the State Bank of India (SBI) had subscribed to the T-bills issued by the Maldivian Ministry of Finance at the Maldivian government’s request. This is the second rollover granted by India this year, following a similar extension in May.
The Indian government has emphasized that these subscriptions were made at the specific request of the Maldivian government as emergency financial assistance. India has consistently stressed its commitment to the Maldives, viewing it as a crucial partner under its ‘Neighbourhood First’ policy and ‘Vision SAGAR’ (Security and Growth for All in the Region). This latest financial assistance is a testament to India’s commitment to assisting the Maldives in times of need.
The announcement has been met with gratitude from the Maldivian government. Foreign Minister Moosa Zameer expressed sincere appreciation for the support, highlighting the enduring friendship between the two nations. The gesture comes amid efforts to strengthen relations following recent diplomatic challenges.
India’s relationship with the Maldives has faced difficulties since President Mohamed Muizzu took office. Shortly after his inauguration, he demanded the removal of Indian military personnel stationed in the Maldives, leading to their repatriation. However, Muizzu’s government has subsequently adopted a more conciliatory approach, working to mend ties.
This latest development marks a significant step in restoring bilateral relations. While the two nations faced a diplomatic row earlier this year stemming from derogatory remarks made by Maldivian officials regarding Prime Minister Narendra Modi’s visit to Lakshadweep, both countries have been actively working to repair the damage.
India’s commitment to the Maldives is underscored by recent high-level visits and the signing of MoUs on capacity building and community development projects. This latest financial assistance further demonstrates India’s willingness to support the Maldives, solidifying their strategic partnership in the region.
