Maldives President Mohamed Muizzu expressed his gratitude to India for supporting the island nation in easing its debt repayment and voiced hopes for stronger bilateral ties, including the potential signing of a free trade agreement. President Mohamed Muizzu made these remarks during the official Independence Day function in the Maldives on Friday, celebrating eight months of what he described as ‘diplomatic success.’
President Mohamed Muizzu acknowledged the assistance from both India and China in alleviating the Maldives’ debt burden, which has been crucial in ensuring the country’s economic sovereignty. He highlighted ongoing negotiations with New Delhi and Beijing for currency swap agreements to address local shortages of US dollars.
Additionally, President Mohamed Muizzu announced that his administration is in discussions to establish a Free Trade Agreement (FTA) with the United Kingdom and expressed optimism about reaching a similar agreement with India.
The Muizzu government has taken a reconciliatory approach following a period of strained relations between the Maldives and India, which led to a diplomatic row. Last month, President Mohamed Muizzu attended the oath ceremony of Prime Minister Narendra Modi, marking Prime Minister Narendra Modi’s third consecutive term in office.
Earlier this year, President Mohamed Muizzu sought debt relief measures to manage the significant loans accumulated by successive Maldivian governments. He reaffirmed that India remains the Maldives’ “closest ally,” emphasizing the unshakeable nature of this relationship. By the end of last year, the Maldives owed India 6.2 billion Maldivian Rufiyaa, as reported by Maldives-based The Edition.
The International Monetary Fund had warned the Maldives of a high risk of debt distress without substantial policy changes. Despite this, President Mohamed Muizzu had previously engaged in ‘anti-India’ rhetoric during his electoral campaign, focusing on the removal of Indian troops from the country. This stance led to the completion of the withdrawal of Indian soldiers in May this year.
Since taking office, President Mohamed Muizzu has taken several unconventional steps concerning India-Maldives relations. Notably, he departed from the tradition of visiting India on his first official trip, opting instead to visit Turkey and subsequently China, where the two countries elevated their ties to a comprehensive strategic cooperative partnership and signed around 20 agreements.
In December, the Maldives decided not to renew the Hydrographic Survey agreement with India. Following the official request for the withdrawal of Indian troops, the Indian government established a High-Level Core Group to manage the process, which concluded in May.
Maldives Defence Minister Ghassan Maumoon later affirmed the capability of the Maldivian defense forces to operate the three aircraft donated by India. Tensions had flared between New Delhi and Male after derogatory comments were made by three Maldivian deputy ministers about Prime Minister Narendra Modi, leading to their suspension and an official protest from New Delhi.
Maldives Tourism Ministry data earlier this year indicated a 33 percent decline in Indian tourist visits compared to the previous year, highlighting the impact of the diplomatic tensions on bilateral relations.
