Addu Airport Audit Flags Serious Financial Concerns, 68.7 Million Rufiyaa Loss in 2025

The Auditor General’s office has issued an adverse opinion on the 2025 financial statements of Addu International Airport Private Limited, highlighting significant financial distress. The audit report, signed by Auditor General Hussain Niyazi, revealed that the company’s accounts do not reflect its true financial position, casting doubt on its ability to continue as a going concern. According to the report, the airport recorded a net loss of 68.7 million rufiyaa in 2025, despite a sharp rise in revenue to 94.3 million rufiyaa from 33 million rufiyaa in 2024. Operating expenses more than doubled to 112.6 million rufiyaa, driven largely by a 66.6 million rufiyaa fuel bill. The accumulated loss has reached 817.4 million rufiyaa, pushing net assets into negative territory at minus 58.2 million rufiyaa. Key issues flagged include the failure to conduct impairment assessments on assets valued at 449.6 million rufiyaa, improper accounting for employee termination benefits, and the omission of capital work-in-progress related to the Gan International Airport development. Total debt has escalated sharply, with current liabilities exceeding current assets by 312.7 million rufiyaa. Despite these concerns, management believes the company can continue operations with support from shareholders. The government is in the process of converting an additional 95 million rufiyaa in funding into equity. The Auditor General has recommended aligning financial reporting with international standards and accelerating asset valuation. The company is 70% owned by the government, with the remaining 30% held by Casa Holdings.