Sri Lanka’s Capital Marine and Civil Construction Company (CMC) has denied rumours that it is filing an arbitration claim for compensation related to the RasMale’ reclamation project. The company issued a statement addressing reports of alleged legal action and a settlement agreement involving the Housing Development Corporation (HDC).
The RasMale’ reclamation project was awarded to CMC by the Maldivian government on 18 December 2023. The contract involved reclaiming 70 hectares of land near Male’ in exchange for land in Fushidhiggaru and Hulhumale’. However, delays in the project led to the government cancelling the agreement and deciding not to provide CMC with further opportunities.
Reports circulated claiming that CMC was planning to file for arbitration and that a settlement agreement had been reached, involving a payment of USD 21 million by HDC. CMC refuted these allegations, clarifying that while the project did not proceed as originally planned, a settlement agreement was reached, and the work on reclamation and shore protection of Site J was completed under revised terms.
The company emphasised that all payments made by HDC were strictly for completed work and that no additional payments or compensation were provided outside the contractual obligations.
In its statement, CMC urged media outlets to avoid spreading false claims that could harm its reputation. The company also called on the government and HDC to provide clear information on the matter to prevent the dissemination of misinformation.
Apart from the RasMale’ project, CMC has been involved in several key land reclamation and infrastructure projects in the Maldives. These include contracts awarded by HDC for reclamation, road construction, and development works in Hulhumale’ Phase 3 and Thilafushi.
