President Ibrahim Mohamed Solih has stated the Maldivian economy is now on an upward trajectory, with tourism starting to recover from the impact of COVID-19. The President made the statement in an interview given to The Hindu newspaper of India.
Speaking on the impact of COVID-19 on the Maldivian economy, President Solih noted the Maldivian economy has long been reliant on tourism, which meant the pandemic and the consequent restrictions on global air travel had a massive impact on the overall economy. However, President Solih said with the reopening of borders and stringent health measures in place at resorts in accordance with guidelines developed by health authorities and the tourism ministry, the tourism industry is now slowly recovering, along with the economy. He noted the Maldives was recently crowned the World’s Leading Destination and is on the wish lists of many.
However, the President stated the pandemic has also made clear the danger of the economy being overly reliant on a single sector. The President noted diversification plans outlined in the Strategic Action Plan (SAP) of his administration have been expedited following the pandemic. In this regard, he stated the administration has changed regulations and increased investment to facilitate and incentivise the agriculture, fisheries and maritime sectors. He also noted working with international partners like the Blue Prosperity Coalition under the ‘Noo Raajje’ programme, the Maldives is focusing on strengthening its Blue Economy to ensure development needs are in line with environmental sustainability.
Speaking further, President Solih said the Maldives will also need international assistance and support for its recovery efforts, to shore up the depleted foreign currency reserves, and reduce debt burden. The President called on the international community to take heed of the particular vulnerabilities of small island states such as the Maldives, especially to crises such as COVID-19, and to positively consider the requests for debt-forgiveness, which would go a long way towards helping revive the economy. He expressed gratitude for the support already provided to the Maldives by international partners and friends, including the budget support and relief measures provided by India.