Maldives Today

The nation in focus

Debt servicing is projected to peak at a billion dollars this year, World Bank says

A high-water mark for the balance of payments, arriving at the same moment as tourism revenue softens.

By Hassan Waheed

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Debt servicing is projected to peak at a billion dollars this year, World Bank says

The World Bank's latest country brief has the Maldives' external debt servicing peaking at US$1.07 billion in 2026 — the highest annual figure in the country's history and arriving at the same moment that tourism revenue has softened under the weight of the Iran war.

The government has chosen refinancing and reserve drawdowns as its principal tools; the International Monetary Fund's last Article IV consultation described the overall fiscal deficit as 'unsustainable at current levels' and urged immediate adjustment.

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