New Delhi, April 24, 2026: India has approved the first withdrawal of ₹30 billion, or ₹3,000 crore, for the Maldives under the SAARC Currency Swap Framework, reinforcing New Delhi’s role as a key financial partner for the island nation at a time of regional economic and geopolitical uncertainty. The funds are being made available under the INR Swap Window of the framework agreed between the Reserve Bank of India and the Maldives side during President Mohamed Muizzu’s state visit to New Delhi in October 2024.
The latest drawdown comes after the Maldives settled an earlier US$400 million swap facility that it had availed in October 2024 under the US Dollar/Euro Swap Window of the bilateral arrangement between the RBI and the Maldives Monetary Authority. The Maldives Foreign Ministry said the repayment reflected the government’s commitment to meeting its financial obligations.
According to the Maldives Foreign Ministry, the new INR 30 billion swap will support the government’s broader strategy to reinforce economic stability, especially amid the evolving situation in West Asia. The ministry also said the INR Swap Window under the 2024–2027 framework includes favourable terms, improving both accessibility and effectiveness for the recipient country.
The move is significant because currency swap arrangements help countries manage short-term foreign exchange and liquidity pressures without immediately depending on commercial borrowings. For the Maldives, whose economy is heavily dependent on tourism, imports and external payments, such support can help maintain confidence, strengthen reserves and smoothen balance-of-payment pressures during periods of global volatility.
India’s financial support to the Maldives under the SAARC swap mechanism is not new. Since the framework was first introduced in 2012, the RBI has extended aggregate swap support worth over US$1.1 billion to the Maldives. Indian officials have described the arrangement as an important instrument in maintaining the Maldives’ financial stability, particularly during periods of external economic pressure.
The approval also carries a wider strategic message. India has reiterated that the Maldives remains a vital partner under its Neighbourhood First policy and Vision MAHASAGAR. The Indian High Commission in Malé said India has consistently acted as a friendly neighbour and “first responder” for the Maldives in times of need.
For New Delhi, the decision strengthens its position as the principal economic stabiliser in the Indian Ocean neighbourhood. For Malé, it provides immediate financial breathing space while signalling that India-Maldives ties remain anchored in practical cooperation despite past political frictions. The swap facility therefore works not just as a financial instrument, but also as a strategic bridge between two close maritime neighbours.
Sources:
https://ddnews.gov.in/en/india-approves-rs-30-billion-for-maldives-under-saarc-currency-swap
https://www.businessworld.in/article/india-releases-rs-30-bn-to-maldives-under-saarc-swap-603879
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