Maldives is grappling with a severe debt crisis, raising concerns of a potential default similar to Sri Lanka’s financial collapse. Despite implementing austerity measures, the island nation is struggling to manage its fast-depleting foreign exchange reserves, with major debt repayments due in 2025 and 2026. According to a report by The Economic Times, Maldives’ external debt has surged to $3.4 billion, primarily owed to China and India. The immediate challenge lies in repaying $600 million in 2025 and a staggering $1 billion in 2026.