Indian embassy in Maldives is to be moved to the capital's suburban district, Hulhumalé.

This was revealed in a joint statement released following the conclusion of India's External Affairs Minister, Sushma Swaraj's visit to the Maldives.

"The Indian side appreciated the decision of the Maldivian side to provide land in Hulhumalé for the Indian embassy," reads the statement.

The current Indian embassy is located in the Henveiru ward of capital Malé City, which is being rented by the India government.

While the new embassy is to be opened in the reclaimed Phase II area in Hulhumalé, President Ibrahim Mohamed Solih recently announced the decision to not develop any government offices in the capital 'due to the severity of congestion in the city.'

Indian External Affairs Minister, Sushma Swaraj concluded her two-day official visit to Maldives on Monday.

She called on President Solih on Monday morning, and discussed the "stock of progress" made since his state visit to India in December 2018. Maldives' relationship with India had soured during former President Abdulla Yameen's five-year tenure, but has since vast improvement since the new administration took over.

Minister Swaraj arrived in the Maldives on Sunday afternoon, on the invitation of her local counterpart Abdulla Shahid.

She met with Minister Shahid in the evening, and later a joint ministerial meeting was held at the foreign ministry.

During her visit, the two nations signed three agreements. They are;

1. Agreement on Exemption from Visa Requirement for Holders of Diplomatic and Official Passports;
2. Memorandum of Understanding regarding Indian Grant Assistance for Implementation of High Impact Community Development Projects through Local Bodies; and
3. Memorandum of Understanding on Collaboration in the Field of Energy Efficiency and Renewable Energy.

Her last engagement of the trip was a meeting with former President Mohamed Nasheed, who the external affairs ministry described as an "old and cherished friend."