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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.

In the mid-seventeenth century, the Dutch, who had replaced the Portuguese as the dominant power in Ceylon, established hegemony over Maldivian affairs without involving themselves directly in local matters, which were governed according to centuries-old Islamic customs.

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

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 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.

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.