The Maldives has stated that its current financial difficulties are temporary and that the country does not plan to seek a bailout from the International Monetary Fund (IMF).

Foreign Minister Moosa Zameer emphasized that the Indian Ocean nation, known for its luxury tourism, is implementing tax hikes to manage its debt obligations.

Zameer reassured that the Maldives has supportive bilateral partners and is focused on tax reforms and streamlining state-owned enterprises to enhance liquidity.

He made these remarks during a visit to Sri Lanka, where he and Finance Minister Mohamed Shafeeq engaged with local central bankers.

Despite recent warnings of a potential sovereign default, Zameer expressed confidence in the situation, noting that the Maldives has strong financial ties with both China and India, its largest bilateral lenders. Official data indicates that the country’s foreign debt stands at approximately $3.37 billion, roughly 45% of its GDP.

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However, the Maldives recently faced credit downgrades from Moody’s and Fitch, citing concerns over dwindling foreign currency reserves and significant debt servicing obligations.