Maldives and ADB
In the Spotlight
ADB has approved a grant of $9.6 million to the Republic of the Maldives to expand Kulhudhuffushi Harbor, a project expected to benefit the 8,000 people living on Kulhudhuffushi Island as well as 30,000 people living on nearby islands.
The changing economic structures in many countries in South Asia and the growing demand for agricultural products have increased the potential for regional trade and investments in this sector.
The Maldives depends entirely on imported oil as its primary source of energy and is therefore very much exposed to fluctuations in the global price of oil. Each of the country’s islands has its own electricity generation and distribution systems, all using diesel generators.
This development effectiveness brief presents how ADB's operations in the Maldives has helped it progress from the United Nations’ Least Developed Country designation to Middle Income Country status as of January 2011.
The Maldives consists of over 1,190 islands, spanning approximately 900 kilometers along the Indian Ocean. Only 188 of these islands are inhabited, and the population is concentrated in a few of the larger islands. Malé, the capital, is home to 39% of the country’s total population of roughly 341,200 people, and only 19 other islands have populations exceeding 2,000 people.
In recent decades, the Maldives has enjoyed sustained growth, driven largely by its luxury tourism industry. However, as an island economy of relatively small scale, the Maldives is extremely vulnerable to external economic shocks and the negative impacts of climate change.
Since 1978, ADB has been a major development partner of the Government of the Maldives. ADB operations have focused on capacity building in public sector financial management, and support for transport, energy, and micro, small, and medium-sized enterprises.
Projects in Maldives
- Preparing Outer Islands for Sustainable Energy Development
- Developing the Revenue Administration Management Information System
- Supporting Inclusive Micro- Small and Medium-sized Enterprise Development Project
- Economic Recovery Program (formerly Public Resource Management Reform Program)
- Private Sector Development Project (PSDP)