New Delhi

Maldives President Dr Mohamed Muizzu has thanked India for the debt relief that has economically helped his country. Addressing a gathering at the Maldives Centre for Social Education (MCSE) last week, the president expressed his "sincere gratitude" to China and India "for their support in easing the Maldives’ debt repayment, thereby enabling the country to ensure economic sovereignty", according to a statement from Maldives' president office.

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The Indian government has provided budget support of $50 million to the Maldives. This support was in form of a rollover of a $50 million Treasury Bill, for an additional year, through the State Bank of India, Male, announced in May this year.

During this year's budget for FY 2024-2025, the Indian government allocated Rs 400 crore ($47.7 million) for infra development and community projects.

Also read | India reaffirms support for projects in Maldives

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The Maldives saw a significant increase in the revised Indian budget for FY 2023-2024, rising to Rs 770.90 crore ($91.9 million), indicating ongoing support for its major infrastructure projects.

The Maldives president also announced that his government is in negotiation with India to facilitate currency swap agreement. 

This financial arrangement would enable the Maldives to address local shortages of US dollars, thereby helping the country manage its liquidity and hedge against foreign exchange risks more effectively

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President Muizzu expressed "hope" for a free trade agreement with India. The country is currently negotiating a Free Trade Agreement (FTA) with the United Kingdom and is set to sign an FTA with Türkiye which is "nearing completion". The Maldives-Türkiye FTA would enable duty exemptions or reductions for 53 types of products.