quality:correction, information:extraction, linguistic:translation
21st century

The Maldives were devastated by a tsunami on 26 December 2004, following the Indian Ocean earthquake. Only nine islands were reported to have escaped any flooding, while fifty-seven islands faced serious damage to critical infrastructure, fourteen islands had to be totally evacuated, and six islands were destroyed. A further twenty-one resort islands were forced to close because of tsunami damage. The total damage was estimated at more than US$400 million, or some 62% of the GDP. 102 Maldivians and 6 foreigners reportedly died in the tsunami. The destructive impact of the waves on the low-lying islands was mitigated by the fact there was no continental shelf or land mass upon which the waves could gain height. The tallest waves were reported to be 14 feet (4.3 m) high.

During the later part of Maumoon's rule, independent political movements emerged in the Maldives, which challenged the then-ruling Dhivehi Rayyithunge Party (Maldivian People's Party, MPP) and demanded democratic reform. The dissident journalist and activist Mohamed Nasheed founded the Maldivian Democratic Party (MDP) in 2003 and pressured Maumoon into allowing gradual political reforms. In 2008, a new constitution was approved and the first direct presidential elections occurred, which were won by Nasheed in the second round. His administration faced many challenges, including the huge debt left by the previous government, the economic downturn following the 2004 tsunami, overspending by means of overprinting of local currency (the rufiyaa), unemployment, corruption, and increasing drug use. Taxation on goods was imposed for the first time in the country, and import duties were reduced on many goods and services. Universal health insurance (Aasandha) and social welfare benefits were given to those aged 65 years or older, single parents, and those with special needs.

Social and political unrest grew in late 2011, following opposition campaigns in the name of protecting Islam. Nasheed controversially resigned from office after large number of police and army mutinied in February 2012. Nasheed's vice-president, Mohamed Waheed Hassan Manik, was sworn in as president. Nasheed was later arrested, convicted of terrorism, and sentenced to 13 years. The trial was widely seen as flawed and political. The UN Working Group on Arbitrary Detention called for Nasheed's immediate release.

The election in late 2013 were highly contested. Former president Nasheed won the most votes in the first round, but the Supreme Court annulled it despite the positive assessment of international election observers. In the re-run vote Abdulla Yameen, half-brother of the former president Maumoon, assumed the presidency. Yameen survived an assassination attempt in late 2015. Vice president Mohamed Jameel Ahmed was removed from office after a no confidence motion from the People's Majlis, it was alleged that he was conspiring with opposition political parties and planning riots. Vice-president Ahmed Adeeb was later arrested together with 17 supporters for "public order offences" and the government instituted a broader crackdown against his accomplices. A state of emergency was later declared ahead of a planned anti-government rally, and the People's Majlis (parliament) accelerated the removal of Adeeb.

In the 2018 election, Ibrahim Mohamed Solih won the most votes, and was sworn in as the Maldives' new president in November 2018. Adeeb was freed by courts in Male in July 2019 after his conviction on charges of terrorism and corruption was overruled, but was placed under a travel ban after the state prosecutor appealed the order in a corruption and money laundering case. Adeeb escaped in a tugboat to seek asylum in India. It is understood that the Indian Coast Guard escorted the tugboat to the International Maritime Boundary Line (IMBL) and he was then "transferred" to a Maldivian Coast Guard ship, where officials took him into custody. Former president Abdulla Yameen was sentenced to five years in prison in November 2019 for money laundering. The High Court upheld the jail sentence in January 2021. However, Supreme Court overturned Yameen's conviction in November 2021.

In the 2023 election, People's National Congress (PNC) candidate Mohamed Muizzu won the second-round runoff of the Maldives presidential election, beating incumbent president, Ibrahim Solih, with 54% of the vote. On 17 October 2023, Mohamed Muizzu was sworn in as the eighth President of the Republic of Maldives. Mohamed Muizzu is widely seen to be pro-China, meaning souring relations with India. In 2024, ex-President Abdulla Yameen Abdul Gayoom was freed from his 11-year conviction and the High Court ordered a new trial.