A newly released report by the Maldives Monetary Authority (MMA) has revealed a rise in tourism-related tax revenues and significant boosts in state reserves, even as the government navigates heavy debt-servicing obligations.
According to the MMA, foreign currency inflows into state reserves from tourism sector taxes and fees rose by 6 percent during the first six months of this year compared to the same period in 2025. While ongoing global conflicts have caused a dip in tourist arrivals that pushed tax and fee revenues slightly below initial government projections, the sector continues to generate the largest share of foreign currency entering the national reserves.
The report paints a dynamic picture of the nation's reserve health over recent cycles. By the end of December 2025, the state's official reserves reached USD 984.6 million—a robust 46 percent increase from the USD 673.9 million recorded at the close of 2024.
However, by the end of June 2026, reserves fell to USD 686.8 million, representing a 17 percent drop compared to June 2025. The MMA noted that this mid-year decline was primarily driven by the utilisation of reserve funds to meet major government debt obligations, notably the repayment of the international Sukuk bond in April.
External debt servicing expenditures surged significantly during the first half of the year, totaling USD 608.6 million—a 202 percent increase compared to the previous year. Alongside the Sukuk repayment, the government also fully settled a USD 400 million currency swap drawn from the Reserve Bank of India in October 2024.
To bolster liquidity amidst these outflows, the MMA reported that around USD 318.8 million was channeled into reserves during the period under the Foreign Exchange Act. This amount represents the mandatory portion that commercial banks are required to sell to the MMA from the foreign currency exchanged by tourism related businesses.