A boat carrying cargo to Kaaf Atoll Funadhoo island, the State Trading Organization's (STO) fuel storage island crashed into the island's seawall while trying to navigate through the manmade channel through the reef on Wednesday.
Coastguard spokesperson Azim Ibrahim said the coast guard had been operating in the area since the accident was reported.
The coastguard was assisting the transfer of cargo to another boat, he added.
The vessel had reportedly been carrying cement when it had crashed into the seawall.