India has announced a $250 million loan to the Maldives to boost its coronavirus-battered economy in a further bid to counter China's growing financial footprint in South Asia, AFP reported.

India's High Commission in the Maldives said the loan was being provided after a request by Maldives President Ibrahim Mohamed Solih for “financial assistance to overcome the difficult economic situation".

“The Maldives is at liberty to use the money in repairing the domestic economic situation in line with its own priorities,” it said in a statement.