The Maldives president has sacked more than 225 political appointees, including ministers, in a bid to reduce the cash-strapped Indian Ocean nation's expenditure, his office said on Tuesday.

Mohamed Muizzu ordered the removal of those he appointed after coming to power last year as the small but strategically located nation struggles to stave off a debt crisis.

"This significant reduction in political appointments aligns with the president's broader efforts to streamline government operations and ensure more efficient use of public funds," a statement from Muizzu's office said.

Among those sacked were seven state ministers, 43 deputy ministers and 178 political directors.

It was not clear what functions they performed in the tiny nation of about half a million people.

The statement did not say how many more political appointees remained in the administration but added that the mass reduction of staff would save the country about $370,000 a month.

The Maldives said in September its financial troubles were "temporary" and that it had no plans to seek an International Monetary Fund bailout despite warnings of a possible sovereign default.

Known as a luxury holiday destination with pristine white sand beaches and secluded resorts, the Maldives has also become a geopolitical hotspot.

China and India are the two largest bilateral lenders to the Maldives, made up of 1,192 coral islands scattered across the equator.

China has pledged more funding since last year's victory by Muizzu, who thanked Beijing for its "selfless assistance" for development funds.

Muizzu was welcomed in New Delhi this month by Indian Prime Minister Narendra Modi, who rolled out financial support to bolster Male's struggling economy.

Official data showed the Maldives' foreign debt at $3.37 billion in the first quarter of this year, equating to around 45 percent of gross domestic product.

China accounted for about 20 percent of the external debt, while India owned just under 18 percent.