The Maldives' request for an extension of an Indian currency swap facility is encountering difficulties due to stringent regulatory requirements, including a mandatory cooling-off period between drawals. India has been instrumental in assisting the Maldives, particularly during its balance of payments and sovereign debt crisis, providing a $400 million currency swap facility in October 2024. Despite rolling over this facility and two interest-free treasury bills worth $100 million, the Indian government is cautious about further extensions due to existing rules. The Maldives is currently grappling with a precarious economic situation, worsened by reduced tourist arrivals from wealthy Gulf states and rising energy costs. Additionally, the country faces nearly $1 billion in debt repayments due in April 2025, including significant amounts for Sukuk Bonds and the currency swap with India. If India cannot extend the swap facility, it may worsen the Maldives' financial challenges in the near future.