The Maldivian government has initiated a series of austerity measures, including the immediate suspension of all non-essential foreign travel, in response to anticipated impacts on state revenue stemming from the ongoing conflict in the Middle East. The directive was issued by the Ministry of Finance.

Speaking at a press conference held today at the President’s Office, Minister of Finance Moosa Zameer clarified that while cost-cutting measures are continuously being implemented, they are often not pre-announced, but rather adapted to prevailing circumstances. “Foreign travel will be halted, though the Foreign Minister will continue essential diplomatic engagements. Non-critical trips will not be undertaken, a principle I personally adhere to, even for vital tasks like signing the final agreement for a $100 million facility from the ADFD,” Minister Zameer stated, emphasizing the strict application of the new policy.

Further elaborating on the government’s fiscal prudence, Minister Zameer announced that the recruitment of new employees for certain projects within state-owned enterprises (SOEs) would also be temporarily suspended. He cited a recent instance where he advised an SOE to defer its hiring plans, underscoring the broad application of these expenditure reduction strategies across various government sectors.