Maldives President Mohamed Muizzu recently expressed his gratitude to India for its support in easing the island nation’s debt repayment and voiced optimism for stronger ties, including the signing of a free trade agreement with New Delhi. This statement was made during the official Independence Day function in the Maldives, where Muizzu commended his administration’s foreign policy, celebrating eight months of diplomatic success, according to the Maldives President’s Office.
In his address, President Muizzu acknowledged the crucial role both India and China have played in helping the Maldives manage its debt, thereby ensuring economic sovereignty. He emphasized the importance of addressing the local shortages of US dollars and mentioned that the Maldives government is negotiating currency swap agreements with both New Delhi and Beijing to alleviate this issue.
President Muizzu also announced ongoing negotiations for a Free Trade Agreement (FTA) with the United Kingdom and expressed hope for a similar agreement with India. This development comes after a period of strained relations between the Maldives and India, which had led to a diplomatic row. However, Muizzu’s administration has adopted a more reconciliatory tone, aiming to mend ties with India.
Earlier this year, Muizzu sought debt relief measures for the hefty loans taken by the Maldives from various governments over the years. He affirmed that India remains the Maldives’ closest ally, despite previous tensions. According to Maldives-based The Edition, the loan amount owed to India by the end of last year stood at 6.2 billion Maldivian Rufiyaa. The International Monetary Fund (IMF) has also warned that the Maldives faces a high risk of debt distress without significant policy changes.
Notably, President Muizzu’s earlier stance included ‘anti-India’ rhetoric, and his electoral campaign focused on the removal of Indian troops from the Maldives. Since taking office, he has taken unconventional steps in the context of India-Maldives relations, including visiting Turkey and China before India. This shift in diplomatic approach saw the Maldives and China elevate their ties to a comprehensive strategic cooperative partnership, signing around 20 agreements. Despite these past tensions, Muizzu’s recent statements indicate a potential for renewed cooperation and stronger bilateral ties with India.