Maldives: Country Operations Business Plan (2021-2023)

This country operations business plan (COBP) 2021–2023 is the first COBP of the country partnership strategy (CPS), 2020–2024 of the Asian Development Bank (ADB) with the Government of Maldives. The lending assistance program for 2021–2023 is in line with the following strategic objectives of the CPS, 2020–2024: (i) improve the quality of life of island communities while ensuring environmental sustainability; (ii) strengthen competitiveness and diversify the economic base; and (iii) enhance public sector efficiency and fiscal sustainability. The coronavirus disease (COVID-19) pandemic is expected to adversely affect the country’s economic performance in 2020, in particular because of the impact of the worldwide travel restrictions on the tourism sector. Negative impacts, although possibly less severe, may spill over to 2021. ADB responded quickly by providing emergency assistance to mitigate the effects of COVID-19 on the economy and society. Continued support to Maldives to cushion the impacts of COVID-19 will gradually shift to operations addressing structural constraints such as macroeconomic imbalances, the weak business environment, the stunted private sector, infrastructure development, and government inefficiency and weak institutional capacity through project investment, gender equality, and social sector development.