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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.

The government declared a state of national disaster and a special task force has been set up to provide aid and supplies. Rescue efforts were hampered by loss of communication capability with the over one thousand islands that compose the nation, as well as by the lack of disaster planning.

In 1558 the Portuguese established themselves on Maldives, which they administered from Goa on India's west coast. Fifteen years later, a local guerrilla leader named Muhammad Thakurufaanu Al-Azam organized a popular revolt and drove the Portuguese out of Maldives. This event is now commemorated as National Day, and a small museum and memorial center honor the hero on his home island of Utim on South Tiladummati Atoll.

In 1973 Ibrahim Nasir was elected to a second term under the constitution as amended in 1972, which extended the presidential term to five years and which also provided for the election of the prime minister by the Majlis. In March 1975, newly elected prime minister Ahmed Zaki was arrested in a bloodless coup and was banished to a remote atoll. Observers suggested that Zaki was becoming too popular and hence posed a threat to the Nasir faction.

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.

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

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 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.