Cabinet Ministers delivered a joint briefing on the Government’s economic crisis response, detailing progress on the national fuel storage facility, commodity price stabilisation, fisheries support, tourism recovery measures, and diplomatic engagement under the leadership of His Excellency President Dr. Mohamed Muizzu.
At a Glance
- Fuel supply secure: Prices have stabilised and there are no difficulties in securing fuel for the Maldivian market; private sector bulk imports have resumed alongside STO.
- Strategic reserve advancing: A three-phase plan is underway, with technical site studies on two near-Malé lagoons starting next week and a comprehensive plan to be submitted for the President’s review within two weeks.
- Commodity prices stabilising: March eCPI rose 1.95% year-on-year, but the food index fell 1.02%, vegetables fell 5%, and fruits collectively fell 15.6%.
- Fisheries strong: MIFCO landings are averaging over 200 tonnes daily, with 380 tonnes recorded yesterday alone. Fuel access has expanded to nine locations, with three more (Laamu, Thaa, Meemu) coming online this week.
- Tourism softening but recoverable: Arrivals are down 4.8% year-on-year (785,000 vs. 825,000), but Qatar Airways and Emirates will run three daily flights from June, British Airways is exploring a 32% capacity increase, and online searches are up 72%.
- Recovery horizon: Ministers anticipate a tourism path to recovery within two to three weeks; Jet A1 fuel was reduced by 24 cents per litre on the 24th of this month.
Key Numbers
| Indicator | Figure | Comparison / Note |
|---|---|---|
| Q1 imports (this year) | MVR 16.2 billion | Up from MVR 13.6 billion in Q1 last year |
| Goods price increase (Q1) | 19%–20% | vs. previous years |
| March eCPI | +1.95% | Year-on-year |
| Food item index | −1.02% | Bureau of Statistics |
| Vegetable prices | −5% | vs. last year (26-item basket) |
| Fruit prices (collective) | −15.6% | eCPI |
| March price index | −2.44% | Year-on-year |
| Inbound TEUs from Colombo | 2,500+ | Aboard 3 feeder vessels next week |
| MIFCO daily landings (avg.) | 200+ tonnes | 380 tonnes yesterday |
| Fishery fuel locations | 9 (rising to 12) | Laamu, Thaa, Meemu added this week |
| Tourist arrivals (YTD) | 785,000 | vs. ~825,000 same period last year |
| Daily average arrivals | 6,600 | vs. 6,900 last year |
| Year-on-year arrivals decline | 4.8% | Up from 3.4% last week |
| Jet A1 fuel reduction | −24 cents/litre | Effective 24th of this month |
1. Fuel Security: The Cross-Cutting Priority
Fuel security emerged as the connective thread across every Ministerial intervention — driving infrastructure investment, sectoral support, and tourism affordability simultaneously.
Market Conditions
Finance Minister Zameer confirmed that fuel prices have stabilised, although they have not yet begun to decrease. While a ceasefire holds between the warring countries, economic tensions between them remain ongoing. He provided assurances that there are no difficulties in securing fuel for the Maldivian market, with the private sector now importing bulk fuel consignments alongside STO. During the period of price instability, STO had carried out the bulk of imports.
National Fuel Storage Facility — Three-Phase Plan
Preparatory work on the strategic reserve announced by President Dr. Muizzu has commenced under STO, in collaboration with the Ministry of Defence and the Ministry of Finance. Site identification is focused on locations with weather conditions suitable for alongside berthing of large vessels.
Phase 1 (near-Malé): STO is currently reviewing two lagoons. Technical site studies commence next week, alongside parallel work on designs, financing, and feasibility. The Ministry’s target is to submit a comprehensive plan for the President’s review within two weeks. The Minister acknowledged that financing may prove challenging due to the ongoing conflict, but maintained that “current fuel reserves are inadequate. Given the state of global conflicts and shocks, increasing our strategic fuel reserve capacity has become vital — a point on which we can all agree.”
The 50/50 Reserve Model
Addressing public questions over the scale of the reserve — including those asking why a year’s worth of stock is needed — the Minister outlined a dual-purpose utilisation model:
- 50% retained for national use;
- 50% rented to international oil tankers and companies seeking strategic storage capacity in the Indian Ocean.
The Government may also enter into arrangements with national oil companies from the Middle East to maintain reserved stock, calibrated according to cashflow availability. “We welcome the feedback from those individuals who have offered constructive criticism on this matter,” the Minister said.
Sectoral Fuel Affordability
Aviation: Following deliberations with MACL, Jet A1 fuel prices were reduced by 24 cents per litre, effective the 24th of this month — a measure flagged by Tourism Minister Ameen as a key competitiveness lever.
Fisheries: Fisheries Minister Shiyam confirmed easements on fuel availability and pricing for all licensed fishery vessels. Fuel was previously provided at the three MIFCO facilities (Felivaru, Addu, Kooddoo) and the Hulhumalé Jetty; access has now expanded to a total of nine locations, with sourcing solutions in Laamu, Thaa, and Meemu coming online this week.
2. Commodity Prices and Trade
Minister of Economic Development and Trade Saeed reported measurable success from the Government’s price-control interventions. While goods prices in the first quarter rose 19%–20% compared to previous years, the targeted basket of 26 essential food items has shown consistent improvement.
| eCPI Component (March) | Year-on-Year Change |
|---|---|
| Essential CPI (overall) | +1.95% |
| Food item index | −1.02% |
| Vegetable prices | −5% |
| Fruit prices (collective) | −15.6% |
| March price index | −2.44% |
Trade volumes reflect both the demand environment and the crisis period: Q1 imports were valued at MVR 16.2 billion, compared to MVR 13.6 billion in Q1 last year.
Colombo Port Backlog Easing
The container backlog at Colombo Port — a consequence of disrupted shipping routes from the Middle East crisis — is now stabilising. According to MPL, more than 2,500 TEUs will arrive in the Maldives next week aboard three feeder vessels operating from the Colombo hub. MPL under its new management is also implementing operational efficiency measures to ensure seamless cargo movement.
3. Fisheries: Strong Output, Manageable Pressures
Fisheries Minister Shiyam reported that current conditions are highly favourable for fishery extraction, with MIFCO landings averaging more than 200 tonnes daily and 380 tonnes recorded yesterday alone. Private fishery processors are reporting similar results.
The Minister underscored the national stakes of fisheries support: “If fuel costs rise, fishermen will not put out to sea. The impact extends well beyond fishing communities — in the absence of fishery catch, the impact would be felt by all citizens.”
Challenges for Processors and Exporters
While catch volumes are robust, downstream sectors face headwinds:
- Aviation and sea freight charges remain elevated;
- Raw frozen fish prices have risen modestly, but inflationary pressures from fuel and operating costs leave competitiveness barely tenable;
- European market fish prices remain largely unchanged while freight costs have increased;
- Agricultural input imports face challenges, though the Minister characterised these as manageable.
4. Tourism: Softening Arrivals, Coordinated Recovery Action
Tourism Minister Ameen emphasised that 2025 remains one of the most successful years for arrivals to date, despite the conflict’s impact on the sector’s frequency-sensitive model — under which airlines aggregate travellers from European and Eastern European source markets for long-haul flights to the Maldives.
| Arrivals Indicator | This Year | Last Year (same period) |
|---|---|---|
| Total arrivals | 785,000 | ~825,000 |
| Daily average | 6,600 | 6,900 |
| YoY change (last week) | −3.4% | — |
| YoY change (today) | −4.8% | — |
The Minister urged journalistic context: historical statistics show similar declines in the 19%–29% range, with arrival pace typically picking up towards year-end.
Recovery Signals
Working with MATI, the Guest House Association, and major airlines, the Ministry has identified concrete positive indicators:
- Qatar Airways and Emirates will operate three daily flights from June — reflecting positive booking system trends;
- British Airways is exploring a 32% capacity increase from the United Kingdom;
- Online searches for the Maldives are up 72%;
- Some major airlines are sustaining two daily flights at load factors of just ~43% — a deliberate goodwill measure to maintain frequency.
“In the coming two to three weeks, we may begin to see a path to recovery, given the combined and concerted efforts of this crisis committee, the Ministry, and our collaboration with major airlines,” the Minister said.
5. Diplomatic Response
Foreign Minister Iruthisham Adam outlined how foreign policy is being mobilised to mitigate the conflict’s impact. Ensuring continued availability of essential commodities — including affordable fuel — is a principal foreign policy objective.
Key activities include:
- Daily monitoring of the conflict, peace talks, and negotiations, with findings reported to relevant agencies;
- Maritime diplomacy: the Maldives has formally raised its concerns regarding passage through the Strait of Hormuz at the International Maritime Organization (IMO);
- Trade mechanisms: engagement with trading partners to identify essential goods quantities and secure cargo consignments through both government and private channels;
- Financial assistance: securing aid to fund the country’s resilience strategies;
- Consular services for any Maldivian affected by the conflict;
- Tourism coordination: sharing foreign mission intelligence on tourism impacts with the Tourism Ministry, and supporting discussions on easing air travel access and restoring market access;
- Bilateral sourcing of affordable essential goods, emergency supplies, and medical supplies through partner countries.
6. What Happens Next: Timeline of Government Action
| Timeframe | Action | Lead |
|---|---|---|
| This week | Fuel sourcing solutions to come online in Laamu, Thaa, and Meemu | Fisheries Ministry |
| This week | 2,500+ TEUs to arrive from Colombo aboard 3 feeder vessels | MPL |
| Next week | Technical site studies commence on two near-Malé lagoons | STO |
| Within 2 weeks | Comprehensive strategic reserve plan submitted for President’s review | Finance Ministry / STO |
| 2–3 weeks | Anticipated tourism recovery signals | Tourism Ministry |
| From June | Qatar Airways and Emirates begin three daily flights | Airlines / Tourism Ministry |
| Ongoing | Daily Foreign Ministry monitoring of conflict and peace talks | Foreign Ministry |
Outlook
Today’s briefing demonstrates a Government response that is structurally coordinated rather than reactive. Fuel security operates as the strategic backbone — connecting infrastructure (the strategic reserve), sectoral support (fisheries fuel access, Jet A1 affordability), and macro stability (commodity prices, trade flows). Diplomatic activity at the IMO and through bilateral channels supplies the external dimension; sectoral interventions in fisheries and tourism address the domestic transmission of the shock.
The principal risks remain external and time-sensitive: the durability of the ceasefire, financing conditions for the strategic reserve, the pace of tourism recovery against the historical 19%–29% decline range, and the persistence of elevated freight costs for fisheries exporters. Against these, the Government has set out a clear, dated sequence of deliverables — site studies next week, a Presidential review within a fortnight, fuel rollout within days, and a tourism recovery window of two to three weeks — that policy makers and observers will be able to track concretely.
Under President Dr. Muizzu’s direction, the message from Cabinet is one of unified, deliberate action: the Maldivian economy is being actively shielded, and the metrics for progress are now on the public record.
