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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.

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…’’

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.

Elected to replace Ibrahim Nasir for a five-year presidential term in 1978 was Maumoon Abdul Gayoom, a former university lecturer and Maldivian ambassador to the United Nations (UN). The peaceful election was seen as ushering in a period of political stability and economic development in view of Gayoom's priority to develop the poorer islands.

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.

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.

The British expelled the Dutch from Ceylon in 1796 and included Maldives as a British protected area. The status of Maldives as a British protectorate was officially recorded in an 1887 agreement in which the sultan accepted British influence over Maldivian external relations and defense. The British had no presence, however, on the leading island community of Malé. They left the islanders alone, as had the Dutch, with regard to internal administration to continue to be regulated by Muslim traditional institutions.

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."

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

The 1988 coup had been headed by a once prominent Maldivian businessperson named Abdullah Luthufi, who was operating a farm on Sri Lanka. Ex-president Nasir denied any involvement in the coup. In fact, in July 1990, President Gayoom officially pardoned Nasir in absentia in recognition of his role in obtaining Maldives' independence.