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During the 1970s, the economic situation in Maldives suffered a setback when the Sri Lankan market for Maldives' main export of dried fish collapsed. Adding to the problems was the British decision in 1975 to close its airfield on Gan in line with its new policy of abandoning defense commitments east of the Suez Canal. A steep commercial decline followed the evacuation of Gan in March 1976. As a result, the popularity of Nasir's government suffered.

Even today, many mosques in Maldives face the sun and not Mecca, lending credence to the theory that early sun-worshipping seafarers first settled on the islands. Because building space and materials were scarce, successive cultures constructed their places of worship on the foundations of previous buildings. Heyerdahl thus surmises that these sun-facing mosques were built on the ancient foundations of the Redin culture temples

Muhammad Thakurufaanu Al-Azam also known as Al-Sultan Ghazi Muhammad Bodu Thakurufaanu ruled over the Maldive Islands (Dhivehhi Rajje) from 1573 to 1585 AD. He is one of the most celebrated Maldivian heroes who saved Maldives from the Portuguese conquerors who ruled over the Maldives from 1558-1573 after killing Sultan Ali VI.

During the British era from 1887 to 1965, Maldives continued to be ruled under a succession of sultans. The sultans were hereditary until 1932 when an attempt was made to make the sultanate elective, thereby limiting the absolute powers of sultans. At that time, a constitution was introduced for the first time, although the sultanate was retained for an additional twenty-one years.

Over the centuries, the islands have been visited and their development influenced by sailors from countries on the Arabian Sea and the Indian Ocean littorals. Mopla pirates from the Malabar Coast-present-day Kerala state in India-harassed the islands. In the 16th century, the Portuguese subjugated and ruled the islands for 15 years (1558-1573) before being driven away by the warrior-patriot and later Sultan, Muhammad Thakurufaanu Al-Azam.

Maumoon Abdul Gayoom, first elected president in 1978 and has retained power since. He has ruled in an authoritarian manner. He survived a coup attempt that was foiled with help of Indian troops in 1988.

In the mid-1980s, the Maldivian Government allowed the noted explorer and expert on early marine navigation, Thor Heyerdahl, to excavate ancient sites. Heyerdahl studied the ancient mounds, called hawitta by the Maldivians, found on many of the atolls. Some of his archaeological discoveries of stone figures and carvings from pre-Islamic civilizations are today exhibited in a side room of the small National Museum on Male.

Three Utheemu brothers landed on different island every night, fought the Portuguese and set sail into the ocean before daybreak. They reached the capital island Malé on the night before the day fixed by the Portuguese garrison of Adiri Adiri for the forcible conversion of the inhabitants to Christianity, on the penalty of death for non-compliance.