Canberra has pledged US$708 million in extra funding for Honiara as part of the deal expected to be signed in the coming weeks
2-MIN READ2-MINBloombergPublished: 9:59am, 8 Sep 2026Australia is in the process of finalising a treaty with another Pacific island nation, with the national broadcaster reporting that Canberra has struck an “in-principle” agreement with the Solomon Islands.The two nations will work to sign the deal in the coming weeks, Australian Broadcasting Corporation reported, citing unidentified government officials. The news comes after Solomons Prime Minister Matthew Wale saw off a challenge to his leadership from within his cabinet, with the rival withdrawing over the weekend.
Australia has pledged A$980 million (US$708 million) in extra funding for the Solomon Islands’ government, according to a leaked text message from the Australian ambassador that was also reported by the ABC.
Albanese was first elected prime minister just weeks after the Solomons-China agreement was revealed, and has worked over the past four years to both reverse that deal and rebuild ties with the archipelago nation. Since Wale came to power in May, he has shifted his government’s diplomatic focus back to Australia and the US, breaking with previous administrations’ tilt towards Beijing.
