India has pledged extensive financial support to the Maldives, including a $400 million currency swap and an additional 30 billion rupees ($357 million) to bolster the island nation’s struggling economy.

This commitment was made during Maldives President Mohammed Muizzu’s visit to India, marking a potential thaw in relations following tensions after his election.

Muizzu’s previous outreach to Turkey and China had strained ties with India, but he recognized the necessity of their partnership given the Maldives’ precarious economic situation, facing a debt crisis with dwindling foreign reserves, As reported by the BBC.

As both nations explore a free trade agreement, Muizzu expressed gratitude for India’s support, emphasizing their commitment to open dialogue and future collaboration.

Written by Emily Begley