The government spent USD 220.52 million on debt servicing during the second quarter of 2025, according to newly released figures from the Ministry of Finance and Planning. The ministry’s quarterly debt bulletin places the nation’s total public and publicly guaranteed debt at USD 9.66 billion, an amount equivalent to 124 per cent of the country’s Gross Domestic Product (GDP).
In the same period, USD 168.63 million was disbursed to support development projects across key sectors. Officials described the spending as a reflection of fiscal discipline and a commitment to long-term economic stability. They said the figures underscore the administration’s ability to secure financing for national priorities while maintaining regular repayment obligations, a combination they believe strengthens investor confidence.
The GDP was revised to USD 7.79 billion by the end of the quarter, with the exchange rate holding steady at MVR 15.42 to the US dollar.
Debt composition under the Budgetary Central Government (BCG) reveals a calculated balance between domestic and external borrowing. Domestic sources accounted for USD 5.54 billion, while external financing totalled USD 2.75 billion. According to the ministry, this dual-track strategy is designed to reinforce financial resilience and ensure the sustainable mobilisation of resources for future investment.
Among external creditors, the Exim Bank of India remains the largest, with USD 596.62 million in outstanding liabilities. Sovereign bonds issued to foreign entities represent the second-largest obligation, amounting to USD 499.35 million. The Exim Bank of China ranks third, with USD 473.55 million owed during the same period.
State-guaranteed debt stood at USD 1.37 billion, or 17.6 per cent of GDP. According to officials, this figure reflects prudent oversight of guarantees extended to state-owned enterprises, highlighting the government’s broader commitment to responsible fiscal governance.