President Ibrahim Mohamed Solih has expressed his confidence in the administration’s sound fiscal measures and economic policies, stating that they would lead to the successful revival and recovery of the country’s economy.
He made the remarks while speaking at a ceremony held at the CROSSROADS Maldives to celebrate Malé Water and Sewerage Company Pvt Ltd (MWSC) ’s 27th anniversary.
President Solih stated that the Maldives’ economy is experiencing the implications of the Covid-19 pandemic and the Russia-Ukraine conflict. The administration, the President said, is reprioritising its developmental initiatives and adopting austerity measures to counter the effects of the events that are severely affecting the global economy.
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. President Solih, however, assured that the administration would not take any steps that would undermine the economy.
The President, in this regard, explained the reasons behind the administration’s decision to recall its proposed bill to lower tourism land rent. President Solih 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.
President Solih stated that, despite the setbacks, a positive trajectory is expected, 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.
