Moreover, historically Maldives has had a strategic importance because of its location on the major marine routes of the Indian Ocean. 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 16th century, Maldivians were left to govern themselves under a long line of sultans and occasionally sultanas.

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 greatest challenge facing the republic in the early 1990s was the need for rapid economic development and modernization, given the country's limited resource base in fishing, agriculture and tourism. Concern was also evident over a projected long-term rise in sea level, which would prove disastrous to the low-lying coral islands. Fortunately in the early 2000s it was found sea level had fallen during preceding decades.

Maldivians consider the introduction of Islam in A.D. 1153 as the cornerstone of their country's history. Islam remains the state religion in the 1990s. Except for a brief period of Portuguese occupation from 1558-73, Maldives also has remained independent. Because the Muslim religion prohibits images portraying gods, local interest in ancient statues of the pre-Islamic period is not only slight but at times even hostile; villagers have been known to destroy such statues recently unearthed.

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-Auzam 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 Utheemu on South Thiladhummathi Atoll.

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.

However, 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.

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 21 years. 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.

This first elected president of the country introduced several reforms. While serving as prime minister during the 1940s, Didi nationalized the fish export industry. As president he is remembered as a reformer of the education system and a promoter of women's rights. Muslim conservatives in Malé eventually ousted his government, and during a riot over food shortages, Didi was beaten by a mob and died on a nearby island.

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, the United Kingdom 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 440,000 square metres on Hitaddu for radio installations.

In 1957, however, 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 the 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.

The short-lived state (1959-62), called the United Suvadivan Republic, had a combined population of 20,000 inhabitants scattered in the atolls then named Suvadiva--since renamed North Huvadu and South Huvadu--and Addu and Fua Mulaku. In 1962 Nasir sent gunboats from Malé with government police on board to eliminate elements opposed to his rule. Abdulla Afif Didi fled to the British colony of Seychelles, where he was granted political asylum.

Meanwhile, in 1960 Maldives allowed the United Kingdom to continue to use both the Gan and the Hitaddu facilities for a thirty-year period, with the payment of £750,000 over the period of 1960 to 1965 for the purpose of Maldives' economic development.

Independence

On July 26, 1965, Maldives gained independence under an agreement signed with United Kingdom. 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.

Presidency of Ibrahim Nasir

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 1973 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 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.

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. Maldives's 20 year period of authoritarian rule under 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.

Current President of Maldives – Maumoon Abdul Gayoom

Elected to replace 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. 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 population appeared to benefit from increased tourism and the corresponding increase in foreign contacts involving various development projects.

Despite coup attempts in 1980, 1983, and 1988, Gayoom's popularity remained strong, allowing him to win three more presidential terms. In the 1983, 1988, 1993, 1998 and 2003 elections, Gayoom received majority of the votes on all the elections where the government did not allow any legal opposition during the last five elections.

Whereas the 1980 and 1983 coup attempts against Gayoom's presidency were not considered serious, the third coup attempt in November 1988 alarmed the international community. About 80 armed Tamil mercenaries belonging to PLOTE landed on Malé before dawn aboard speedboats from a freighter. Disguised as visitors, a similar number had already infiltrated Malé earlier. Although the mercenaries quickly gained the nearby airport on Hulhule island, they failed to capture President Gayoom, who got military intervention from India, the United States, and the United Kingdom. Indian Prime Minister Rajiv Gandhi immediately dispatched 1,600 troops by air to restore order in Malé. Less than 12 hours later, Indian paratroopers arrived on Hulhule, causing some of the mercenaries to flee toward Sri Lanka in their freighter. Those unable to reach the ship in time were quickly rounded up. Nineteen people reportedly died in the fighting, and several taken hostage also died. Three days later an Indian frigate captured the mercenaries on their freighter near the Sri Lankan coast. In July 1989, a number of the mercenaries were returned to Maldives to stand trial. Gayoom commuted the death sentences passed against them to life imprisonment.