MACL's Debt Reaches MVR 16.6 Billion: Large-Scale Land Reclamation Projects Impact Company’s Financial Sustainability
8 ނޮވެމްބަރު 2026 | އާދީއްތަ 09:06The total asset value of Maldives Airports Company Limited (MACL) has surged to MVR 23.6 billion, driven by extensive loans acquired for the major redevelopment of Velana International Airport. However, a recent audit report highlights a significant threat to the company’s financial sustainability, noting that MACL is being burdened with the financial costs of government land reclamation projects unrelated to its core airport operations.
President Muizzu alongside MACL Managing Director Mohamed Shareef during a visit to inspect the ongoing development at Giravaru Falhu. | MACL
The total outstanding debt from various loans acquired by Maldives Airports Company Limited (MACL) has reached MVR 16.6 billion, according to the latest audit report.
According to the financial statements for 2025 released by the Auditor General’s Office, Maldives Airports Company Limited (MACL) carries a total debt of MVR 16.6 billion in loans obtained through banks and the government. The largest portion of this debt, amounting to MVR 6.2 billion, is owed to the Export-Import Bank of China. Additionally, the financial statements reveal that MVR 1.6 billion is due to the Saudi Fund, with substantial outstanding payments also owed to institutions such as the Kuwait Fund and the Abu Dhabi Fund.
The audit report reveals significant changes to the company's financial standing and asset portfolio. These shifts are primarily attributed to the acquisition of substantial loans for the expansion and modernization of Velana International Airport’s infrastructure, as well as the transfer of major state-led land reclamation project agreements to the Maldives Airports Company Limited (MACL).
The audit report reveals that the state has provided sovereign guarantees for loans secured from foreign financial institutions to fund massive infrastructure projects, including the airport's new passenger terminal, the new runway, and the fuel farm. Furthermore, the primary collateral for these loans consists of the leasehold rights to the land of Hulhule, along with all existing and future buildings and facilities constructed on the site. While the valuation of the land-use rights for Hulhule, recorded in the company’s financial statements as a government grant, exceeds seven billion Rufiyaa, a significant portion of the island has already been leased to various parties on a commercial basis.
Following these financial transactions, the total valuation of the company’s Property, Plant, and Equipment (PPE) and ongoing capital work-in-progress has risen significantly, increasing from MVR 20.37 billion to MVR 23.6 billion. The audit report highlights that this represents a substantial portion of MACL’s total assets and equity—ranging between 59% and 65%—making it a critical and major component of the company’s balance sheet.
According to the audit report, one of the most significant challenges to the financial sustainability of Maldives Airports Company Limited (MACL) is the burden of financing large-scale state land reclamation projects that fall outside the company’s core mandate. Specifically, the establishment of "Marine and Integrated Infrastructure Development" (MIID) as a subsidiary of MACL on September 18, 2025, has been identified as the primary factor causing substantial disruption to the company’s financial statements.
The company, which has been entrusted with major government projects such as the Giravarufalhu reclamation, holds an outstanding work-in-progress value of MVR 1.76 billion on its balance sheet alone. Furthermore, the audit reveals that despite its short history, the company has accumulated billions in debt and short-term financial obligations. These financial burdens are now adversely impacting the Maldives Airports Company Limited’s (MACL) core mandate of airport development.
The audit report highlighted that assuming the financial burden of major state land reclamation projects, in addition to its primary responsibility of airport development, poses a significant challenge to the financial sustainability of Maldives Airports Company Limited (MACL). The report further noted that this could adversely impact the company’s cash flow and its core operations.
