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The greatest challenge facing the republic in the early 1990s was the need for rapid economic development and modernization, given the country's limited resource base in fishing and tourism. Concern was also evident over a projected long-term rise in sea level, which would prove disastrous to the low-lying coral islands. Fortunately in the early 2000s it was found sea level had fallen during preceding decades.

On July 26, 1965, Maldives gained independence under an agreement signed with Britain. The British government retained the use of the Gan and Hitaddu facilities. In a national referendum in March 1968, Maldivians abolished the sultanate and established a republic.

The person responsible for the conversion to Islam was a Sunni Muslim visitor named Abu al Barakat. His venerated tomb now stands on the grounds of Hukuru Mosque, or miski, in the capital of Malé. Built in 1656, this is the oldest mosque in Maldives. Arab interest in Maldives also was reflected in the residence there in the 1340s of the well-known North African traveler Ibn Battutah.

The interest of Middle Eastern peoples in Maldives resulted from its strategic location and its abundant supply of cowrie shells, a form of currency that was widely used throughout Asia and parts of the East African coast since ancient times. Middle Eastern seafarers had just begun to take over the Indian Ocean trade routes in the tenth century A.D. and found Maldives to be an important link in those routes.

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.

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.

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.

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

Maldives remained a British crown protectorate until 1953 when the sultanate was suspended and the First Republic was declared under the short-lived presidency of Muhammad Amin Didi.

Heyerdahl's research indicates that as early as 2,000 B.C. Maldives lay on the maritime trading routes of early Egyptian, Mesopotamian, and Indus Valley civilizations. Heyerdahl believes that early sun-worshipping seafarers, called the Redin, first settled on the islands.

Theravada Buddhism originating from Ceylon (present-day Sri Lanka) became the dominant religion of the people of Maldives. Some scholars believe that the name "Maldives" derives from the Sanskrit maladvipa, meaning "garland of islands."

When the tsunami hit, two-thirds of the capital city Malé was flooded during the early hours of the day. Outlying low-level atolls were badly affected and some low lying islands, including some of the major resorts, were completely submerged during the high tide.

Maldivians consider the introduction of Islam in A.D. 1153 as the cornerstone of their country's history. Islam remains the state religion in the 1990s. Except for a brief period of Portuguese occupation from 1558-73, Maldives also has remained independent. Because the Muslim religion prohibits images portraying gods, local interest in ancient statues of the pre- Islamic period is not only slight but at times even hostile; villagers have been known to destroy such statues recently unearthed.

The Second Republic was proclaimed in November 1968 under the presidency of Ibrahim Nasir, who had increasingly dominated the political scene. Under the new constitution, Nasir was elected indirectly to a four-year presidential term by the Majlis (legislature). He appointed Ahmed Zaki as the new prime minister.

This first elected president of the country introduced several reforms. While serving as prime minister during the 1940s, Muhammad Amin Didi nationalized the fish export industry. As president he is remembered as a reformer of the education system and a promoter of women's rights. Muslim conservatives in Malé eventually ousted his government, and during a riot over food shortages, Didi was beaten by a mob and died on a nearby island.