President Ibrahim Mohamed Solih has expressed confidence in the administration’s ability to repay state debt. He made the remarks while speaking at a ceremony held to celebrate the 27th anniversary of the Male’ Water and Sewerage Company Limited (MWSC).
Speaking at the ceremony, President Solih expressed confidence in the administration’s sound fiscal measures and economic policies and said that they would lead to the successful revival and recovery of the country’s economy. The president said the economy is experiencing the implications of the COVID-19 pandemic and the Russia-Ukraine conflict. He said the administration is re-prioritising its developmental initiatives and adopting austerity measures to counter the effects of the events that are severely affecting the global economy.
Furthermore, President Solih noted the crisis in Ukraine led to decreased tourist arrivals to the Maldives from one of its top markets and resulted in a rise in global fuel prices, inflation, and the administration’s spending on subsidies and imports. He, however, assured the administration will not take any steps that would undermine the economy.
In this regard, President Solih explained the reasons behind the administration’s decision to recall its proposed bill to lower tourism land rent. He said the decision followed comprehensive deliberations on the Economic Council, which found it ill-advised to pursue such measures in light of the current situation.
Additionally, President Solih said a positive trajectory is expected despite the setbacks, with increased tourist arrivals and income exceeding earlier projections. He then assured that debt servicing is on track for the 2023-24 period and expressed confidence in the administration’s sound economic policies.