In a bold move to address the Maldives’ growing financial challenges, President Mohamed Muizzu has dismissed more than 225 political appointees, including ministers and top officials, to reduce government expenditure. The decision comes as the Indian Ocean nation struggles with mounting debt and fiscal instability.
“This significant reduction in political appointments aligns with the president’s broader efforts to streamline government operations and ensure more efficient use of public funds,” a statement from Muizzu’s office said on Tuesday.
Among those relieved of their duties are seven state ministers, 43 deputy ministers, and 178 political directors. While the exact roles of the dismissed officials were not made clear, Muizzu’s office highlighted that the move would save the government approximately $370,000 per month.
The Maldives, a nation of about 500,000 people spread across 1,192 coral islands, has been grappling with significant debt. In September, the government described its financial issues as “temporary” and dismissed the need for an International Monetary Fund (IMF) bailout, despite warnings of a potential sovereign default.
The country is heavily indebted to China and India, its two largest bilateral lenders. Official data from the first quarter of 2024 indicated that the Maldives’ foreign debt stood at $3.37 billion, equating to roughly 45% of its gross domestic product. China accounts for 20% of this debt, while India holds nearly 18%.
Since Muizzu’s election, China has pledged further financial support, which the president acknowledged as “selfless assistance” for the nation’s development. Earlier this month, Muizzu also secured backing from Indian Prime Minister Narendra Modi during his visit to New Delhi, where additional aid was offered to boost the struggling Maldivian economy.
