On Monday, Maldives President Mohamed Muizzu thanked Prime Minister Narendra Modi for the Indian government’s decision to provide support in the form of Rs 30 billion (USD 360 mn) in addition to a USD 400 million bilateral currency swap agreement. “I am thankful for the Indian Government’s decision to provide support in the form of 30 billion Indian Rupees in addition to 400 million US Dollars bilateral currency swap agreement, which will be instrumental in addressing the foreign exchange issues we are facing right now,” Muizzu said.
PM Modi and Muizzu today held bilateral and delegation-level talks at Hyderabad House in the national capital. Following the talks, India today granted cash-strapped Maldives a USD100 million Treasury bills rollover, and both sides inked a USD 400 million and Rs 3,000 crore currency swap agreement. Describing the “development partnership” as an important pillar of New Delhi-Male ties, Prime Minister Modi asserted that India has always given preference to the priorities of the people of Maldives.
Prime Minister Modi said, “Development partnership is an important pillar of our (India-Maldives) relations. We have always given preference to the priorities of the people of Maldives. This year, SBI rolled over 100 million dollars of the Treasury Bench of Maldives. As per the needs of the Maldives, a 400 million dollar and Rs 3000 crore currency swap agreement was also signed.”
In September, India announced that the State Bank of India would subscribe to USD 50 million worth of Maldivian government bonds. Earlier in May 2024, SBI similarly subscribed to USD 50 million bills under the same mechanism, again on the request of the Government of Maldives. In addition, Prime Minister Narendra Modi and President Mohamed Muizzu witnessed the first transaction of RuPay card payments launched in the Maldives today.
The two leaders also virtually inaugurated the runway of Hanimaadhoo International Airport in the island nation. Prime Minister Narendra Modi said India and Maldives will connect through UPI. “A few days back, RuPay card was launched in Maldives. In the time to come, India and Maldives will be connected through UPI,” PM Modi said in a joint press statement along with President Muizzu at Hyderabad House.
PM Modi further said that the island country holds an important position in India’s neighbourhood policy and SAGAR vision. He underlined that India is Maldives’ nearest neighbour and close friend. “First of all, I extend a hearty welcome to President Muizzu and his delegation. India and Maldives relations are centuries old. India is Maldives’ nearest neighbour and close friend. Maldives holds an important position in our neighbourhood policy and SAGAR vision,” PM Modi said.
Muizzu arrived in India on Sunday on an inaugural five-day visit and was accorded a ceremonial reception at the Rashtrapati Bhavan earlier today. President Droupadi Murmu and Prime Minister Narendra Modi received the Maldivian President and First Lady Sajidha Mohamed as they arrived at Rashtrapati Bhavan.
Muizzu also met External Affairs Minister S Jaishankar on Sunday in the national capital.
