World Bank: Maldives records fastest debt growth in South Asia over past decade

The World Bank has reported that the Maldives and Bangladesh recorded the fastest growth in external debt in South Asia over the last 10 years. According to the World Bank International Debt Report 2026, external debt in the Maldives increased the most in the region during this period. In 2015, the Maldives' external debt stood at $1 billion, and by the end of 2025, this figure had risen to $4.7 billion. This is the highest rate of debt growth among countries in South Asia. The World Bank notes that 11 percent of the Maldives' export earnings are spent on debt repayment. Although this figure is higher than the average rate of 10 percent for India and South Asia, it is lower than Sri Lanka's 26 percent and Bhutan's 19 percent. The report highlights that while debt is currently being managed, the shortening of grace periods for starting debt repayment and the increasing cost of borrowing pose major challenges. Given the rapid increase in debt in the Maldives and Bangladesh, experts emphasize the need for reforms to establish long-term fiscal stability and to use borrowed funds more prudently.