Budget 2023: SDF will have accumulated $500 million by 2025

Maldives Monetary Authority tower | Photo: Maldives Independent

Malé, Maldives – Government of Maldives has revealed that the Sovereign Development Fund (SDF) is expected to have USD 500 million by the end of 2025.

The Finance Ministry’s budget for next year estimated that by the end of 2025, the SDF will have a total of more than USD 500 million.

The SDF is expected to raise MVR 871.4 million next year. In 2024, the fund is expected to raise MVR 944.8 million while in 2025 it is expected to raise MVR 1 billion according to the governments forecasts.

According to the Finance Ministry, SDF had MVR 5 billion as of October 20 of this year. So far this year, the fund has MVR 653.5 million deposited to it. The budget estimates that a total of MVR 781.7 million will be deposited in the fund this year.

The SDF was created to provide the ability to repay loans in case of emergency. The fund was established in 2017 by the previous administration to cover the losses caused by a shock to the economy.

The money into the Sovereign Development Fund currently comes from the Airport Development Fee (ADF). ADF is taken from all passengers who use Velana International Airport at the rate of USD 12 per Maldivian and USD 25 per foreigner.

At a press conference at the President’s Office, Presidential Spokesperson Miuwan Mohammed said the sovereign fund would have the estimated amount by the end of the year.

According to local news outlets 90 percent of the fund, initially in US Dollars, in SDF was converted to Rufiyaa in 2020. The money in SDF was converted to Maldivian Rufiyaa as per the suggestion of Maldives Monetary Authority (MMA).