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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.

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 Maldive islands stretch from the southern tip of India down to the equator. There are 1,196 coral islands spread over roughly 90,000 square kilometers and 26 atolls of the Indian Ocean, making this one of the most disparate countries in the world.

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.

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.

Since 2003 the country has experienced occasional antigovernment demonstrations that have called for political reforms.