Maldives Loses USD 500 Million Annually in Remittances

Speaking on PSM’s ‘Raajje Miadhu’ program on Tuesday, Saeed highlighted the scale of the remittance outflow and criticized past policy decisions that have exacerbated the situation.

Saeed noted that the previous administration, led by the Progressive Party of Maldives (PPM), imposed a 2% tax on remittances from 2013 to 2018 to increase foreign currency input. However, this tax was abolished by the Maldivian Democratic Party (MDP) when it came to power in 2018.

The minister also discussed current measures under the People’s National Congress (PNC) administration to reduce foreign currency leakage, including projects to increase renewable energy usage and the planned switch to making payments for imports in Chinese and Indian currencies.

Highlighting the ongoing crackdown on illegal activities among the large expatriate population, Maldives Immigration has deported 3,222 migrants since November 17, 2023, with many undocumented workers running unauthorized businesses.