The government says repaying the Maldives' external debt remains its highest economic priority, while continuing to invest in the growth of small and medium enterprises as part of its broader strategy to build a stronger and more resilient economy.
Speaking at the "Presser with the Spox" series on the country's debt management and economic outlook, Chief Government Spokesperson Mohamed Hussain Shareef said preventing a sovereign default is the administration's foremost responsibility, warning that failing to meet external debt obligations would have serious consequences for the nation and its people.
He noted that while both external and domestic debt remain challenges, the government is addressing them through a gradual and carefully managed approach. Shareef acknowledged that domestic debt remains higher than the administration considers acceptable, but said it can be reduced over time without disrupting the country's economic stability.
The spokesperson stressed that the government will not pursue economic reforms at the expense of essential public services. Despite recommendations from international financial institutions to introduce deeper spending cuts, he said the administration remains committed to maintaining the import of essential fuel, paying government salaries on time and ensuring uninterrupted healthcare services.
According to Shareef, the government's fiscal management has improved significantly over the past two years, allowing it to prepare for major debt repayments due in September this year. He added that international financial institutions have also recognised improvements in the country's fiscal position.
Over the past two and a half years, the administration has repaid USD 1.29 billion in debt, reducing the Maldives' external debt to 44.5 percent of Gross Domestic Product as of the end of May this year.
Alongside efforts to strengthen public finances, the government is also placing renewed emphasis on supporting small and medium-sized enterprises, recognising their vital contribution to economic growth, employment and community development.
Marking International MSME Day, SME Digital Chief Executive Officer Badhurudheen Hassan said every small business plays an important role in supporting families, creating jobs and strengthening the national economy.
To celebrate the occasion, SME Digital, in collaboration with the Ministry of Economic Development, Transport and Trade and the Business Centre Corporation, is hosting MSME Fest 2026 at Hulhumalé Central Park, where around 30 businesses are showcasing their products and services through dedicated exhibition stalls.
Public Service Media is also supporting the initiative through a special TVM telethon running from 10:30 a.m. until 11:00 p.m., aimed at raising awareness and sharing success stories from the country's small business community.
In addition, SME Digital has launched several public engagement campaigns, including the "Tag Your Favorite MSME" social media campaign offering cash prizes, and the "CaptureMSME" photography competition highlighting the contribution of small businesses to society. An MSME Day awareness programme involving SME Digital, the Bank of Maldives, Huraa Council and the Business Centre Corporation is also scheduled as part of the nationwide celebrations.
The government says maintaining fiscal stability while creating greater opportunities for entrepreneurs and small businesses will remain central to its long-term vision of building a more diversified, resilient and sustainable Maldivian economy.
