The Sovereign Development Fund (SDF) deposits so far this year have increased by 29.9 percent over the same period last year.
The SDF was created to provide the ability to repay loans in case of emergency. The fund was established in 2017 to cover the losses caused by a shock to the economy.
According to the Finance Ministry, MVR 489.5 million has been deposited in the fund as of the 15th of this month. This is an increase of 29.9 percent over the MVR 376.6 million deposited in the fund during the same period last year.
The Sovereign Fund is expected to raise MVR 871.4 million this year, with 56 percent of the estimate deposited to the fund so far. The fund was estimated to raise MVR 769.2 million last year. However, the total amount raised was MVR 820 million at the end of the year.
With this year’s amendment to the Public Finance Act, the President decides how to deposit money into the SDF and how to spend it on the advice of the Finance Minister. The fund is managed by the Finance Ministry. Before the amendment came into effect, the SDF was managed by the central bank, the Maldives Monetary Authority (MMA).
