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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.

During the British era from 1887 to 1965, Maldives continued to be ruled under a succession of sultans. The sultans were hereditary until 1932 when an attempt was made to make the sultanate elective, thereby limiting the absolute powers of sultans. At that time, a constitution was introduced for the first time, although the sultanate was retained for an additional twenty-one years.

After a coup attempt in 1988, mercenaries quickly gained the nearby airport on Hulele, but failed to capture President Gayoom, who fled from house to house and asked for military intervention from India, the United States, and Britain. Indian prime minister Rajiv Gandhi immediately dispatched 1,600 troops by air to restore order in Malé. Less than twelve hours later, Indian paratroopers arrived on Hulele, causing some of the mercenaries to flee toward Sri Lanka in their freighter.

The Utheemu brothers along with other Maldivians who were determined to die for their country and faith, slew the whole Portuguese garrison and gained independence for the country from its invaders. Adri Adri was killed by a musket shot of Muhammad Thakurufaanu himself.

The importance of the Arabs as traders in the Indian Ocean by the twelfth century A.D. may partly explain why the last Buddhist king of Maldives converted to Islam in the year 1153. The king thereupon adopted the Muslim title and name of Sultan Muhammad al Adil, initiating a series of six dynasties consisting of eighty-four sultans and sultanas that lasted until 1932 when the sultanate became elective.

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 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.

During the 1970s, the economic situation in Maldives suffered a setback when the Sri Lankan market for Maldives' main export of dried fish collapsed. Adding to the problems was the British decision in 1975 to close its airfield on Gan in line with its new policy of abandoning defense commitments east of the Suez Canal. A steep commercial decline followed the evacuation of Gan in March 1976. As a result, the popularity of Nasir's government suffered.

The interest of Middle Eastern peoples in Maldives resulted from its strategic location and its abundant supply of cowrie shells, a form of currency that was widely used throughout Asia and parts of the East African coast since ancient times. Middle Eastern seafarers had just begun to take over the Indian Ocean trade routes in the tenth century A.D. and found Maldives to be an important link in those routes.

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.

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.

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.