February 17, 2024 : The recent series of events surrounding Prime Minister Narendra Modi’s visit to Lakshadweep and the subsequent altercation with Maldivian ministers, followed by their suspension by the new government in Maldives, has sparked rumors of Maldives declaring bankruptcy. Let’s delve into the latest developments regarding this issue.
Relations between India and Maldives took a hit when the new government under President Mohammed Muzee declared power. This administration was perceived to be more inclined towards China. PM Modi’s visit to Lakshadweep exacerbated tensions between the two nations, leading to verbal sparring between Maldivian ministers and the Indian PM, resulting in their suspension.
Key Incidents Fueling Tension:
- PM Modi’s Visit: His trip to Lakshadweep was seen as provocative by Maldives.
- Verbal Altercation: Maldivian ministers engaged in verbal sparring with PM Modi, leading to their suspension.
- IMF Warning: Maldives received a warning from the IMF regarding its mounting debt.
Debunking Bankruptcy Rumors
Despite rumors of bankruptcy, Maldives’ Economic Affairs Minister, Mohammed Saeed, refuted such claims, stating that the country’s financial situation is improving. The government has sought IMF assistance and agreed to initiate an economic reform program to alleviate economic challenges.
Foreign Policy Implications
Maldives’ inclination towards China has strained its relationship with India further. Recent actions, including the deportation of Indian citizens and engagement in 20 agreements with China, signal a significant shift in foreign policy.
Deportation Controversy:
The deportation of 43 Indian citizens from Maldives has raised concerns about deteriorating bilateral relations. Additionally, 83 Bangladeshi nationals and others from Sri Lanka and Nepal were also deported, sparking worries of escalating tensions.
While tensions between India and Maldives escalate, Maldives’ economic stability and foreign policy decisions remain under scrutiny. The deportation of foreign nationals and growing alignment with China hint at broader geopolitical shifts in the region. However, assertions of bankruptcy have been refuted, indicating ongoing efforts to address economic challenges through international cooperation and reform initiatives.
