The first inhabitants probably arrived in the archipelago from Ceylon (Sri Lanka) and southern India before 500 BC. One theory is that the islands were at the trading crossroads of several maritime nations as early as 2000 BC. Maldivians believe that an ancient race of sun-worshipping people called the Redin were the first settlers, and left a heritage of beliefs and customs involving evil spirits, or jinnis, still evident today.

The Redin left around 500 BC or were absorbed by Buddhists from Ceylon and by Hindus from India. Because building materials were limited, each group built its important structures on top of those left by previous inhabitants. This is why many Maldivian mosques are oriented towards the sun and not Mecca. Arab traders en route to the Far East recorded visits to the Maldives from the 2nd century AD. Known as the 'Money Isles', they provided enormous quantities of cowrie shells, an international currency of the early ages.

The conversion to Islam, in 1153 AD, is a watershed in Maldivian history. According to legend, a sea jinni called Rannamaari demanded regular sacrifices of young virgin girls in Malé. Abu Al Barakat, a visiting North African Arab took the place of a sacrificial virgin, and drove the demon away by reading from the Koran, the Islamic holy book. The Maldivian king at the time was sold on Islam, and Barakat later became the first sultan. A series of six sultanic dynasties followed - 84 sultans and sultanas in all. At one stage, when the Portuguese first arrived in the 16th century, there were actually two ruling dynasties: the Malei and the Hilali.

The Portuguese, eager for a greater share of the profitable trade routes of the Indian Ocean, were granted permission to build a fort and a factory in Malé, but it wasn' t long before they wanted more from the Maldives. In 1558, Captain Andreas Andre led a Portuguese invasion which killed Sultan Ali VI. Andre ruled Malé and much of the country for the next 15 years. Portuguese occupation came to a sticky end in 1573 when an island chief, Mohammed Thakurufaan, led an attack on the main Portuguese garrison and slew the lot.

In the 17th century, the Maldives came under the protection of the Dutch and later the British, but neither established a colonial administration. In the 1860s Borah merchants from Bombay set up warehouses and shops in Malé, and quickly acquired an almost exclusive monopoly on foreign trade. Sultan Mohammed Mueenuddin II, weary of the Borahs' economic grip, signed an agreement with the British in 1867 which guaranteed the islands' full independence. The Maldives subsequently became a British protectorate, and allowed the British to establish defence facilities.

The sultanate became an elected rather than a hereditary position when the islands' first constitution was drawn up in 1932. In 1953 the sultanate was abolished and a republic proclaimed with Amin Didi as the first president. Less than a year later Didi was overthrown; the sultanate was returned with Mohammed Farid Didi elected as the 94th sultan of the Maldives. Around the same time, the British secured permission to re-establish its wartime airfield on Addu Atoll in the far south of the country. In 1956 the Royal Air Force began developing the base as a staging post, employing hundreds of Maldivians and undertaking the resettlement of the Gan islanders. But when Ibrahim Nasir was elected prime minister in 1957 he immediately called for a review of the agreement, demanding that the lease be shortened and the annual payment increased.

This was followed by an insurrection against the government by the inhabitants of Addu and Suvadiva (Huvadu) atolls who objected to Nasir's demand that the British cease employing local labour. Influenced by the British presence, they decided to cut ties altogether and form an independent state. In 1962 Nasir sent gunboats to the southern atolls and the rebellion was quashed. Britain recognised the islands' sovereignty soon after and in 1965, the Maldives became fully independent.

Following a referendum in 1968 the sultanate was again abolished and a new republic inaugurated with Nasir as president. His autocratic rule ended a decade later when, fearing for his life, he fled the country for Singapore. The progressive Maumoon Abdul Gayoom was elected president in his place. Gayoom has been in power ever since, surviving coup attempts in 1980 and 1988. He was nominated for a fourth five-year term in 1993, and his presidency was confirmed by an overwhelming referendum.

Recent years have been characterized by modernisation, rapid economic growth, and improvement in most social indicators. The main contributors to this growth have been the fishing industry, tourism and foreign aid. There are pressures for political liberalisation on one hand and for a more traditional Muslim way of life on the other. The government also needs to strike a balance between preserving the environmental quality of the islands and further developing tourism and fishing.

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