Maldives May Need to Utilise SDF Funds to Cover Reserves Shortfall: Experts

Experts warn that the Sovereign Development Fund (SDF) may need to be used if the state budget cannot meet the current shortfall by next month. Usable dollar reserves have fallen to US$43 million, far below the US$70 million needed for a month's essential imports. The MMA reportedly sent a communique to the Ministry of Finance expressing concern, but the central bank denied this. Two anonymous experts confirmed to Adhadhu that dipping into the SDF is the only quick option. The SDF had US$65 million as of last disclosure. Finance Minister Mohamed Shafeeq was unavailable for comment. The SDF is expected to accumulate MVR 1 billion by year end.

Experts warn that the Sovereign Development Fund (SDF) may need to be used if the state budget cannot meet the current shortfall by next month. Usable dollar reserves have fallen to US$43 million, far below the US$70 million needed for a month's essential imports. The MMA reportedly sent a communique to the Ministry of Finance expressing concern, but the central bank denied this. Two anonymous experts confirmed to Adhadhu that dipping into the SDF is the only quick option. The SDF had US$65 million as of last disclosure. Finance Minister Mohamed Shafeeq was unavailable for comment. The SDF is expected to accumulate MVR 1 billion by year end.

Experts warn that the Sovereign Development Fund (SDF) may need to be used if the state budget cannot meet the current shortfall by next month. Usable dollar reserves have fallen to US$43 million, far below the US$70 million needed for a month's essential imports. The MMA reportedly sent a communique to the Ministry of Finance expressing concern, but the central bank denied this. Two anonymous experts confirmed to Adhadhu that dipping into the SDF is the only quick option. The SDF had US$65 million as of last disclosure. Finance Minister Mohamed Shafeeq was unavailable for comment. The SDF is expected to accumulate MVR 1 billion by year end.

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