Nasheed Suggests Selling Airport Shares To Repay USD 500 Million Sukuk
Photo: People’s Majlis
Former President Mohamed Nasheed has proposed selling shares of Velana International Airport (VIA) as a more practical alternative to issuing high-interest bonds, amid increasing concern over the Maldives’ ability to repay a USD 500 million sukuk maturing in April 2026.
Rather than pursuing a bond sale to Cargill Financial Services Inc. at a high interest rate, it would be more prudent to consider divesting a portion of Velana Airport shares. The generated revenue could be allocated towards settling the Sukuk Bond, thereby reducing the countries…
— Mohamed Nasheed (@MohamedNasheed) November 8, 2025advertisement
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Nasheed said that selling shares in VIA could provide the funds needed to settle the sukuk while reducing the country’s overall debt burden. His comments come as the government faces mounting fiscal challenges, with credit rating agencies Fitch and Moody’s maintaining low ratings for the Maldives due to persistent debt risks and limited progress on fiscal reforms.
The proposal follows President Dr Mohamed Muizzu’s remarks on 13 October, in which he assured that the government has no concerns about meeting the sukuk repayment deadline. The President stated that his administration is working to strengthen the economy and remains committed to repaying the bond next year.
Nasheed also revisited the 2010 airport concession agreement, under which his administration had leased the operation of VIA to India’s GMR Group for 25 years. The agreement was terminated in 2012 by the government of President Dr Mohamed Waheed Hassan Manik. Nasheed defended the original deal, stating that its cancellation resulted in significant economic losses for the Maldives. Former Finance Minister Ibrahim Ameer, under President Ibrahim Mohamed Solih’s administration, had also previously described the termination as an economic setback.
The idea of selling shares in VIA has drawn mixed reactions, with critics warning against privatising key national infrastructure. However, Nasheed maintains that such a measure could offer immediate financial relief and help stabilise the country’s economic outlook.
