MACL’s debt reaches 16.6 billion rufiyaa; audit flags land reclamation burden as major financial risk

The Maldives Airports Company Limited (MACL) has a total debt of 16.6 billion rufiyaa, according to an audit report released by the Auditor General’s Office. The 2025 financial statement reveals that the largest portion of this debt, 6.2 billion rufiyaa, is payable to China’s Exim Bank, with significant amounts also owed to the Saudi Fund, Kuwait Fund and Abu Dhabi Fund. The audit report states that the company’s total assets have risen to 23.6 billion rufiyaa, largely due to large loans taken to expand and modernise infrastructure at Velana International Airport, including a new passenger terminal, runway and fuel farm. Sovereign guarantees have been provided for these loans, and the rights to lease land in Hulhumale, along with buildings and facilities on that land, have been offered as primary collateral. The value of the Hulhumale land rights recorded as a government grant exceeds seven billion rufiyaa. However, the audit identifies the biggest challenge to MACL’s financial sustainability as being required to bear the financial burden of large government land reclamation projects outside its core airport operations. A subsidiary established in September 2025, Marine and Integrated Infrastructure Development (MIID), has become the main reason for a major shock to the company’s finances. The value of unfinished work alone for the subsidiary amounts to 1.76 billion rufiyaa. The audit warns that these additional debts and short-term obligations will adversely affect MACL’s cash flow and its ability to fulfil its primary responsibility of developing the airport.