West Asia conflict could hit Maldives' economy, India can help: Nasheed

Former Maldives President Mohamed Nasheed warns the West Asia conflict could trigger severe economic consequences for the Maldives due to declining tourism and rising fuel prices, urging India to leverage its ties to de-escalate regional tensions.

Economic Consequences for Maldives

Former Maldives President Mohamed Nasheed on Wednesday warned that the ongoing conflict in West Asia could have serious economic consequences for small island states like the Maldives, particularly due to declining tourism and rising fuel prices and said that India could play a key role in de-escalating tensions, given its strong ties with the major actors involved in the conflict.

Speaking to ANI, Nasheed said the conflict could disrupt the country's fragile economic stability. "Tourist arrivals have come down. So that is going to have a very big impact on our economy and the prosperity of the people. So, yes, it is very, very difficult," he added.

Broader Security Implications

He also expressed concern over the broader security implications if military action expands in the region. "Especially if the United States is going to attack people near our borders or within our borders, then there is a likelihood that our own people also will be in danger," the former Maldives President said.

India's Potential Role in De-escalation

On the diplomatic front, Nasheed said India could play a key role in de-escalating tensions, given its strong ties with the major actors involved in the conflict. "I think India will try to speak to the United States and Israel. India has very good relationships with these countries. Hopefully, it will impress upon them the need to stop the war. The war must end, and I think India can play a very big part in ending the war," he said.

Economic Fragility and Debt Pressures

The former Maldivian leader also flagged severe risks posed by rising energy prices to small island developing states. With shipping disruptions and threats to supplies moving through the Strait of Hormuz, global oil markets have been under pressure. Nasheed said the Maldives has limited fuel reserves, leaving it vulnerable to sudden price shocks. "Some countries have one year of fuel reserves. I think we have just about two months of fuel reserves. When fuel prices rise, everything rises. All prices rise, production stops," he said.

Highlighting the economic fragility of climate-vulnerable nations, Nasheed pointed to mounting debt pressures and the impact of falling government revenues due to declining tourism. "Debt burden is a very, very big issue. For instance, in the coming month, we have a big payment to make. And because government revenue will be down as tourism is decreasing, we might not be able to pay the debt. It is a big challenge for us," he said. (ANI)

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)