Efforts underway to reclaim Lhosalafushi for Kurendhoo without harming the state: President

President Dr Mohamed Muizzu said efforts are underway to bring Lhosalafushi in Lhaviyani Atoll back under state ownership so it can be used as an extension of Kurendhoo, addressing the island’s severe land shortage.

The island was previously awarded to India’s TATA Housing Company during the first MDP administration for the development of luxury housing villas on land that previously housed the Arabiyya School, Gaakoshi, ODEON, and Naadhee Building.

After the former President Abdulla Yameen’s administration canceled the agreement in 2010, TATA filed for USD 200 million (MVR 3 billion) in arbitration. The matter was later settled out of arbitration, with the government agreeing to return the land.

President Muizzu said the government is reviewing the original agreement, rules, and laws to ensure that Lhosalafushi can be reclaimed without causing loss to the state. Discussions are ongoing with the company to allow its projects to continue on another island if necessary, ensuring that both parties are protected and any required compensation is provided.

“The terms of the agreement, rules, and laws are being looked at to reclaim the island to the state without harm. Both parties should not be harmed, and compensation should be given in connection with the company’s work, even if it is to give them another island,” he said.

The President said that 50 housing units currently under construction in Kurendhoo are insufficient to meet the island’s housing needs. Making Lhosalafushi, just 350 meters away, part of Kurendhoo will provide much needed space for development.

“This will succeed. Land space is certainly one of the biggest problems on the island. Our policy is to meet the expectations of the people,” President Muizzu added.