Govt. terminates Innafushi lease agreement

Tourism Ministry has made the decision to terminate the resort construction agreement for Innafushi island of Baa atoll in a bid to protect the environment.

Minister Waheed said the area is being protected due to its extra-ordinary natural beauty, being one of the most unique spots in the Maldives.

"The area where the island is situated in has several unique environmental features - Baa atoll or the Horsburgh atoll. This is the only natural micro-atoll in the Maldives. One of the most authentic island-style areas. Several protected areas lie within its vicinity', said Minister Waheed.

Innafushi Island was leaded to Systems Private Limited in 2017. The company paid an acquisition cost of US$ 1.4 billion for the island.

Ali Waheed said the government is working to develop Maldivian tourism in a sustainable manner, unlike the action of the previous governments. Although agreements may be terminated to conform to the government's vision, due compensation will be given to the investors, assured the Minister.

Earlier on Sunday, Tourism Ministry made the decision to terminate the lease agreement with Hotels and Resort Construction (HRC) for the development of a resort in Odagallaa island of Gaaf Alif atoll.