Maldives state government has revealed its objective to liquidate state-owned shares from one local tourist property, and the prospective reopening sometime in 2022.
According to the Maldives government, the state will be liquidating its shares from the Shangri-La tourist resort that has been left shut down for some time now.
The resort, of which 30% shares were held by the state government was closed back in 2020 for renovations amid the Covid-19 outbreak.
Meanwhile, the people of Addu City who cover a major portion of the resort’s employees have voiced concerns over the unprecedented prolonging of the resort’s closure. The public plight and concerns were officially raised by Addu Meedhoo constituency MP Mr. Rozaina Adam at the parliament of Maldives during Monday’s sitting.
At Monday’s session, Ms. Adam directed her questions at the incumbent Minister of Tourism Dr. Abdulla Mausoom, inquiring from him for reasons of the prolonged closure of the resort.
Dr. Mausoom responded stating that, unlike most other tourist properties, Shangri-La has 30% of ownership belted under the state government. In his justification, Dr. Mausoom stated that as per the particulars of the agreement between state government and Addu Investment Private Limited, the resort’s other shareholder, state must be held liable for the losses incurred to the property.
As such, state currently owes a loan-finance of USD68 million to Addu Investment Private Limited as per the agreement particulars.