Maldives's twenty-year period of authoritarian rule under Ibrahim Nasir abruptly ended in 1978 when he fled to Singapore. A subsequent investigation revealed that he had absconded with millions of dollars from the state treasury.
In 1957 the new prime minister, Ibrahim Nasir, called for a review of the agreement in the interest of shortening the lease and increasing the annual payment. But Nasir, who was theoretically responsible to then sultan Muhammad Farid Didi, was challenged in 1959 by a local secessionist movement in the southern atolls that benefited economically from the British presence on Gan. This group cut ties with the Maldives government and formed an independent state with Abdulla Afif Didi as president.
The early history of the Maldives is obscure. According to Maldivian legend, a Sinhalese prince named Koimale was stranded with his bride-daughter of the king of Sri Lanka-in a Maldivian lagoon and stayed on to rule as the first sultan.
In 1978 Maldives joined the International Monetary Fund and the World Bank. Tourism also gained in importance to the local economy, reaching more than 120,000 visitors in 1985. The local populace appeared to benefit from increased tourism and the corresponding increase in foreign contacts involving various development projects.
The government declared a state of national disaster and a special task force has been set up to provide aid and supplies. Rescue efforts were hampered by loss of communication capability with the over one thousand islands that compose the nation, as well as by the lack of disaster planning.
The importance of the Arabs as traders in the Indian Ocean by the twelfth century A.D. may partly explain why the last Buddhist king of Maldives converted to Islam in the year 1153. The king thereupon adopted the Muslim title and name of Sultan Muhammad al Adil, initiating a series of six dynasties consisting of eighty-four sultans and sultanas that lasted until 1932 when the sultanate became elective.
The British expelled the Dutch from Ceylon in 1796 and included Maldives as a British protected area. The status of Maldives as a British protectorate was officially recorded in an 1887 agreement in which the sultan accepted British influence over Maldivian external relations and defense. The British had no presence, however, on the leading island community of Malé. They left the islanders alone, as had the Dutch, with regard to internal administration to continue to be regulated by Muslim traditional institutions.
Maldives is an isolated nation and is among the smallest and poorest countries in the world. In olden times, the islands provided the main source of cowrie shells, then used as currency throughout Asia and parts of the East African coast. Moreover, historically Maldives has had a strategic importance because of its location on the major marine routes of the Indian Ocean.
Beginning in the 1950s, political history in Maldives was largely influenced by the British military presence in the islands. In 1954 the restoration of the sultanate perpetuated the rule of the past. Two years later, Britain obtained permission to reestablish its wartime airfield on Gan in the southernmost Addu Atoll. Maldives granted the British a 100-year lease on Gan that required them to pay £2,000 a year, as well as some forty-four hectares on Hitaddu for radio installations.
In 1558 the Portuguese established themselves on Maldives, which they administered from Goa on India's west coast. Fifteen years later, a local guerrilla leader named Muhammad Thakurufaanu Al-Azam organized a popular revolt and drove the Portuguese out of Maldives. This event is now commemorated as National Day, and a small museum and memorial center honor the hero on his home island of Utim on South Tiladummati Atoll.
Maldives gained independence in 1965. The British, who had been Maldives' last colonial power, continued to maintain an air base on the island of Gan in the southernmost atoll until 1976. The British departure in 1976 almost immediately triggered foreign speculation about the future of the air base; the Soviet Union requested use of the base, but Maldives refused.
In 1960 Maldives allowed Britain to continue to use both the Gan and the Hitaddu facilities for a thirty-year period, with the payment of £750,000 over the period of 1960 to 1965 for the purpose of Maldives' economic development.