A total of MVR 87 million has been deposited to the Sovereign Development Fund (SDF) over the last year.
The SDF was established in 2017 to mitigate economic shocks and support the repayment of large development loans. Funded by the airport development fee and increased service fees at Velana International Airport, the SDF provides a financial safety net for the country.
Since President Dr. Mohamed Muizzu took office in November last year, the fund has grown significantly, with a starting balance of just MVR 2 million.
Speaking at a ceremony held on Sunday on the occasion of Republic Day, President Dr. Muizzu said the government aims to increase the fund balance to USD 100 million by the end of the year, and to USD 150 million by the end of 2025.
As per information disclosed by the government in the past, the SDF, established by President Abdullah Yameen’s administration, had more than $500 million at the end of the administration. However, the following administration under President Ibrahim Mohamed Solih converted these funds into local currency.
The president acknowledged that, like other administrations, the current government has also rarely withdrawn money from the fund for essential expenses. Any funds withdrawn are replenished, he added.
The current government has introduced a bill to give legal authority to the Sovereign Development Fund.
