India has renewed financial aid to the Maldives as an “emergency financial assistance” for a period of one year under its “Neighbourhood First” policy. This was done through the rollover of a $50 million Treasury Bill, which was issued in 2019 for a period of one year. Abdulla Khaleel, who heads the island nation’s Foreign Affairs ministry, has thanked India for “extending crucial financial support”.

“The State Bank of India (SBI) had subscribed USD 50 mn Government Treasury Bills (T-bills) issued by the Ministry of Finance, Government of Maldives on 17 March, 2019/ 26 June 2019 for a period of one year. This has subsequently been extended till 12 May 2025. On the request of GoM, SBI has rolled over the T-bills again for one more year till 11 May 2026 as an emergency financial assistance,” said the High Commission of India in the Maldives in a statement.

It added, “Maldives is India’s key maritime neighbour and an important partner under India’s ‘Neighbourhood First’ policy and Vision SAGAR, i.e. Security and Growth for All in the Region,” it added.

The statement further said that this extension reflects India’s support for the Maldives. “India has assisted Maldives in times of need and the subscription of T-bills along with Government of India’s decision earlier this year, of extending special quota for export of essential commodities for Maldives by one more year reflect India’s continued support to the Government and the people of the Maldives,” the statement, dated May 12, further said.

“I express my sincere gratitude to EAM Dr S Jaishankar and the Government of India for extending crucial financial support to the Maldives through the rollover of the USD 50 million Treasury Bill,” said Abdulla Khaleel after India extended financial assistance for a period of one year.

He added, “This timely assistance reflects the close bonds of friendship between Maldives & India and will support the Government’s ongoing efforts to implement fiscal reforms for economic resilience.”