Minister of Tourism Dr. Abdulla Mausoom has stated that the government plans to sell its stakes in islands leased for resort development.
Ministry of Finance recently announced it was seeking a party to conduct a valuation on the sale of government stakes in three islands held by Bodumohora Investments Private Limited, Nainfaru Holdings Private Limited, and Hurasfaru Holdings Private Limited.
Minister Mausoom said the islands are not profitable and the government decided to sell its stakes to allow the opportunity for the resorts to be operated more efficiently. He added that the Economic Council made the decision to sell government stakes in other such resorts.
The government typically retains a 5-10% stake in islands that are leased for resort development without a bidding process. However, the government does not hold any stake in an island that is leased after a bidding process. The government has given up its 30% stake in Shangri-La Resort after it failed to become profitable.