Former President Mohamed Nasheed has proposed selling shares of Velana International Airport (VIA) as an alternative to issuing high-interest bonds, suggesting that proceeds from such a sale could be used to reduce the Maldives’ external debt.
In a post on X, Nasheed wrote: “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 country’s debt obligations.”
The proposal comes as the government faces the upcoming maturity of a USD 500 million sukuk in April 2026. According to the proposed 2026 State Budget, this repayment represents the largest single debt obligation next year. The government plans to refinance or defer around USD 450 million of the amount and cover the remaining USD 150 million through the Sovereign Development Fund (SDF).
President Dr Mohamed Muizzu previously stated on 13 October that there were no concerns about meeting the repayment deadline, noting that his administration is taking steps to strengthen the economy and intends to honour the sukuk in full.
Nasheed’s comments follow ongoing concerns from credit rating agencies such as Fitch and Moody’s, which have maintained low ratings for the Maldives due to high debt levels and limited fiscal reforms.
The former president also referred to the 2010 airport concession agreement under which his administration leased VIA operations to India’s GMR for 25 years. The deal was later terminated by President Dr Mohamed Waheed Hassan Manik’s government in 2012, a move that Nasheed and former Finance Minister Ibrahim Ameer have described as economically damaging.
The idea of selling shares in VIA has drawn mixed reactions, with some critics warning against privatising a strategic national asset. However, Nasheed argues that the measure could provide immediate relief from growing debt pressures while avoiding the burden of high-interest borrowing.
