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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.

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.

Although governed as an independent Islamic sultanate for most of its history from 1153 to 1968, Maldives was a British protectorate from 1887 until July 25, 1965. In 1953, there was a brief, abortive attempt at a republican form of government, after which the sultanate was reimposed.

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."

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.

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.

Each atoll is administered by an Atoll Chief (Atholhu Veriyaa). The president (Maumoon Abdul Gayoom) appoints atoll chiefs to each atoll, who administers it as may be decreed and directed by the president. The Ministry of Atoll Administration and its Northern and Southern Regional Offices, Atoll Offices and Island Offices are collectively responsible to the President for Atolls Administration. The administrative head of the island is the Island Chief (Katheeb), appointed by the Ministry of Atolls Administration. The Island Chief’s immediate superior is the Atoll Chief

Following independence from Britain in 1965, the sultanate continued to operate for another 3 years. On November 11, 1968, it was abolished and replaced by a republic, and the country assumed its present name. Tourism and fishing are being developed on the archipelago.

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.

Caused by the 2004 Indian Ocean earthquake, a tsunami in the Indian Ocean saw parts of Maldives be covered by sea water and many people homeless. After the disaster, cartographers are planning to redraw the maps of the islands due to alterations by the tsunami. The people and government are worried that Maldives would be wiped out from the map eventually.

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.

Whereas the 1980 and 1983 coup attempts against Maumoon Abdul Gayoom's presidency were not considered serious, the third coup attempt in November 1988 alarmed the international community. About eighty armed Tamil mercenaries landed on Malé before dawn aboard speedboats from a freighter. Disguised as visitors, a similar number had already infiltrated Malé earlier.

Maldives' nearest neighbors are Sri Lanka and India, both of which have had cultural and economic ties with Maldives for centuries. Although under nominal Portuguese, Dutch, and British influences after the sixteenth century, Maldivians were left to govern themselves under a long line of sultans and occasionally sultanas.