ADB Approves Maldives Country Partnership Strategy for 2027–2031

en.Wedoany.com Reported - The Asian Development Bank (ADB) has approved a new Country Partnership Strategy (CPS) for the Maldives covering 2027–2031, aimed at supporting the country in strengthening fiscal sustainability, enhancing energy security, and boosting resilience to natural disasters.

The five-year strategy focuses on two interconnected priorities: first, improving fiscal management; second, diversifying energy sources and accelerating renewable energy adoption. ADB believes that diversifying energy sources can reduce fuel subsidy costs and enhance fiscal sustainability, while improved fiscal management can help support investment in climate resilience. These priorities will be advanced through public and private sector financing, technical assistance, and knowledge support.

Thiam Hee Ng, ADB's Regional Director for Regional Cooperation and Integration, said the Maldives has made remarkable development progress but remains highly vulnerable to external shocks, with high public debt, constrained public finances, reliance on imported fuel, and intensifying extreme weather events; the new Country Partnership Strategy aims to support key structural reforms and investments to strengthen the country's fiscal position and long-term resilience.

The Maldives faces severe threats from sea-level rise and extreme weather, including flooding, severe tropical storms, and coastal erosion. As a small tourism-dependent economy, its tourism revenue is susceptible to external shocks; substantial public debt and limited fiscal space further constrain the country's ability to invest in sustainable development.

Under the new strategy, ADB will support institutional reforms to improve debt management, modernize tax administration, enhance the performance of state-owned enterprises, and reduce fiscal risks from energy and waste management utilities. At the same time, ADB will help accelerate renewable energy use, diversify the energy mix through solar power, battery energy storage, waste-to-energy, and grid upgrades, making the power network more reliable and efficient. Across all these support efforts, ADB will advance digital transformation, expand private sector participation, and promote gender equality.

The Country Partnership Strategy is aligned with ADB's Midterm Review of Strategy 2030 and the Government of the Maldives' long-term development priorities. ADB will also further strengthen cooperation with development partners, including the International Monetary Fund (IMF) and the World Bank Group, to ensure that financing and development interventions are coordinated with partners' initiatives.

ADB has supported the Maldives since 1978. As of December 31, 2025, ADB has committed 128 public and private sector loans, grants, and technical assistance, totaling $606 million.

Established in 1966, ADB is owned by 69 members, 50 of them from the region, and is a multilateral development bank dedicated to supporting sustainable, inclusive, and resilient growth in Asia and the Pacific.