President Dr Mohamed Muizzu unveiled the administration's ambitious plans to inaugurate and operationalise the new passenger terminal at Velana International Airport (VIA) in Malé City by October this year. He made this statement during his presidential address at the opening session of parliament for 2025.
President Dr Muizzu explained that the current terminal at VIA has the capacity to handle 1.5 million passengers annually. In stark contrast, the new terminal, encompassing 78,000 acres, will accommodate over seven million passengers each year. Underscoring the vital importance of inter-island transportation due to the unique geography of the Maldives, the president highlighted the government’s unwavering commitment to resolving long-standing challenges in this sector.
Elaborating on key initiatives, the president announced the inauguration of Hanimaadhoo International Airport and Gan International Airport within the year. A new airport in Muli, Meemu Atoll, is also set to commence operations in April 2025. President Dr Muizzu affirmed that airport development projects are progressing at various stages across the nation.
"In addition, the development of airports in Nilandhoo (Faafu Atoll), Guraidhoo and Vilufushi (Thaa Atoll), Mathiveri (Alifu Alifu Atoll), Kaadeddhoo (Gaafu Dhaalu Atoll), Villingili (Gaafu Alifu Atoll), Milandhoo, Bilehfahi and Komandoo (Shaviyani Atoll), Fainu and Alifushi (Raa Atoll), Dhidhdhoo (Haa Alifu Atoll), Thulhaadhoo (Baa Atoll), and Kadhdhoo (Laamu Atoll) will progress this year," President Muizzu stated.
Additionally, expansions at Kulhudhuffushi in Haa Dhaalu Atoll and Funadhoo in Shaviyani Atoll are scheduled to begin this year, in alignment with the President's pledge.
The new terminal at VIA will feature state-of-the-art technology and amenities, including passenger boarding bridges (PBBs) and advanced luggage handling systems. This modernisation is anticipated to address many of the challenges currently faced by the existing terminal and will enable the addition of food and beverage outlets, retail spaces, passenger lounges, and other services.
Addressing the financial aspect, President Dr Muizzu pledged to double the amount of US dollars available to Maldivians travelling abroad from VIA during the first quarter of 2026. Currently, the Bank of Maldives (BML) provides USD 500 per local passenger departing VIA. The administration aims to increase this amount to USD 1,000 by early 2026 and subsequently raise credit card limits to USD 1,400 by the second quarter of the same year, President Dr Muizzu stated.
Highlighting the newly enacted Foreign Currency Act (Forex Act), President Dr Muizzu emphasised its significance in bringing positive changes to the state foreign reserves. At the end of 2023, the state's foreign reserves stood at USD 590.5 million, rising to USD 673 million by the end of 2024. The administration aims to increase this figure to USD 705.1 million by year-end, according to President Dr Muizzu, thereby benefiting the people through enhanced foreign currency availability.
To reduce reliance on black market currency exchanges, President Dr Muizzu stated that the administration plans to establish mechanisms by September 2025 to provide foreign currency to state-owned enterprises. Additionally, the administration aims to increase the foreign currency available to banks for telegraphic transfer (TT) services to local companies by January 2026, he added.
The newly enacted Foreign Currency Act mandates that companies generating foreign revenue, including those in the tourism sector, exchange a portion of their earnings through local banks, thus ensuring improved regulation and control.