Maldives Airports Company Secures USD 40 Million Loan from Sri Lankan Banks

The Maldives Airports Company Limited has secured a USD 40 million loan from a consortium of Sri Lankan banks to refinance capital expenditure for the new international passenger terminal at Velana International Airport.

The loan, which marks an important step in the country's efforts to revamp its infrastructure and drive sustainable growth, will be used to enhance the airport's capacity to handle an increased number of passengers. The Maldives' thriving tourism industry, which accounts for a significant share of the country's foreign exchange earnings, faces numerous challenges, including climate change, over-reliance on tourism, and declining foreign investment.

The loan agreement between MACL and the Sri Lankan banks consortium underscores the strengthening economic ties between two island nations. The Maldives and Sri Lanka have shared historical and cultural connections as former British colonies and are members of the Indian Ocean Rim Association (IORA). This partnership highlights the growing economic ties between countries that share a strategic location in the Indian Ocean.

The loan, with an interest rate of 6.5% per annum, is expected to be repaid by MACL over 10 years. The agreement serves as a testament to the country's commitment to sustainable development and cooperation with neighboring countries like Sri Lanka will play a critical role in driving growth and prosperity in the region.