India has approved a ₹3,000 crore (approximately $360 million USD) currency swap for the Maldives under the South Asian Association for Regional Cooperation (SAARC) framework. This facility aims to assist the Maldives in managing liquidity stress and maintaining macroeconomic stability amid ongoing economic challenges, including reduced tourist flows and rising energy costs due to the recent conflict in West Asia. The Maldives foreign ministry welcomed this support, emphasizing the strong partnership between the two nations. Over the years, India has provided significant financial assistance to the Maldives, including a $400 million currency swap facility in October 2024 and a $565 million line of credit for infrastructure development announced during Prime Minister Narendra Modi's visit in July 2025. However, the Maldives' economic situation remains precarious, with Fitch Ratings downgrading its sovereign credit rating to CC, reflecting increased risks of default and ongoing fiscal pressures.