Addu City Council claims that central government control over 100 hectares of local land and eight uninhabited islands is costing the region MVR 10 million per month in lost revenue, while creating uncertainty for local tourism investors.
Previously held sitting of Addu City Council councilors --
The central government’s control over more than 100 hectares of land in Addu City is causing the region an estimated loss of MVR 10 million every month in potential revenue, the Addu City Council stated during a press briefing today.
Speaking at the media brief, MDP Council Member Hussain Zareer (representing the Hithadhoo Rasgedhara constituency) expressed concern that residents are being denied the economic benefits of local uninhabited islands located within the council’s legal jurisdiction. According to Zareer, the central government has taken control of eight out of the 12 uninhabited islands in the area under various administrative pretexts.
Zareer highlighted several key properties currently managed directly by central ministries rather than local authorities, including recently reclaimed land, tourism zones, and commercial sites. He noted that revenue generated from land lease fees across these sites is being collected directly by government ministries rather than flowing into the city council’s budget.
On an annual basis, the lost revenue exceeds MVR 115 million—an amount greater than the state block grant allocated to the Addu City Council each year.
Adding to the concerns, Addu City Mayor Ali Nizar revealed that reclaimed land specifically set aside for tourism under the council’s local development master plan was seized by the government following legislative amendments. He noted that these takeovers occurred while contractor machinery was actively operating on-site, leaving the council unable to proceed with planned regional development projects despite receiving strong interest from prospective investors.
Mayor Nizar further warned that unannounced land reclassifications by the government have generated uncertainty for local investors. He pointed out that local entrepreneurs funding projects in the Feydhoo Tourism Zone without government or bank financing now fear their private investments could be compromised by sudden policy changes.
Key Affected Areas & Properties Mentioned: