Maldives Plans Major Land Sales to Raise Up to MVR 20 Billion for Development Projects

At the end of February, the Maldives' usable reserves reached USD 179 million, reflecting a rise of USD 63 million compared to January's total of USD 116 million, as reported by the Maldives Monetary Authority (MMA).

The largest increase in reserves last year occurred in February, when they amounted to USD 128 million. However, there was a significant drop in reserves by September, with the lowest point recorded at just USD 32 million.

To improve reserves, the MMA has started channeling foreign currency from the tourism sector into local Maldivian banks. This follows the Reserve Bank of India’s (RBI) provision of a USD 400 million currency swap, part of which, USD 120 million, was injected into local banks—marking the first time these funds were utilized in this manner, as they had previously been kept in a foreign bank.

While usable reserves have increased, total reserves for the Maldives remained at USD 832 million last year. As these reserves stabilize, the government is exploring strategies to raise additional funds, including discussions with the Ministry of Finance about generating revenue through the Housing Development Corporation (HDC). Plans under consideration include selling land plots, which could potentially raise between MVR 8 billion and MVR 20 billion.