Funds Transferred to Sovereign Development Fund Decreases

Comparatively to last year, funds being deposited to the Sovereign Development Fund (SDF) have decreased.

Weekly statistical releases by the Finance Ministry show that MVR 62.2 million was transferred to the SDF from 1st January 2021 to 18th March 2021. In the same period last year, MVR 160.9 million was transferred to the fund. Compared to the same period last year funds transferred to the fund has decreased by 61 percent.

The Sovereign Development fund was established in 2017 by President Yameen Abdul Gayyoom’s government to carry out debt repayment for sovereign loans taken towards development initiatives. The funds deposited into this account are taxes charged from the use of Velana International Airport and miscellaneous other agencies. Every tourist that enters the Maldives pays an Airport Development Tax of 25 US Dollars.

Since President Solih assumed office, the foreign currency deposit of the SDF has decreased significantly as the government has been using funds in the SDF for recurrent expenditure.