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The Republic of Maldives is a country consisting territorially of a group of atolls in the Indian Ocean, south-southwest of India

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 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.

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."

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.

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.

Muhammad Thakurufaanu was the son of Khatheeb (island chief) Husain of Utheemu in Thaladhummathi Atoll and Lady Amina Dio. After the invasion, the Portuguese ruled most cruelly over the Maldive islands in a period which the chronicles describe as ‘‘a time when intolerable enormities were committed by the invading infidels, a time when the sea grew red with Maldivian blood, a time when people were sunk in despair…’’

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.

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.

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.