Over MVR 301 million has been deposited this year to the Sovereign Development Fund (SDF) established to repay government loans.
The SDF was created in 2017 to provide the government with the ability to repay loans in case of emergency. The fund would assist in paying back loans borrowed for large development projects during economic downturns.
According to the Finance Ministry, MVR 301 has been deposited into the fund thus far this year, while MVR 234.4 million was deposited in the SDF during the same period last year. Therefore, the amount added to the fund thus far this year is a 28 percent increase against the same period in 2022.
Although the fund was estimated to receive MVR 769.2 million last year, the actual amount received was MVR 820 million. The SDF is expected to receive MVR 871.4 million this year.
The SDF was previously managed by the central bank, the Maldives Monetary Authority (MMA). With this year's amendment to the Public Finance Act, the president will decide how to deposit money into the SDF and how to utilize it on the advice of the Finance Minister. The fund will be managed by the Finance Ministry.
