Chinese company bags Maldivian Island on 50-year lease

NEW DELHI: The Maldives has leased an island close to Malé airport to a Chinese company, a development that could have adverse strategic implications for India in its backyard.

Feydhoo Finolhu, the nearest uninhabited island to capital Malé and the international airport, has been leased to a Chinese company for 50 years at a cost of about $4 million, the Maldivian tourism minister Moosa Zameer announced on Tuesday, without disclosing the name of the company.

China has been eyeing opportunities to help build infrastructure in Maldives to expand its footprint in the Indian Ocean Region as part of its ‘One Belt One Road’ connectivity initiative. It is keen to opening its purse strings to build a network of ports dubbed the ‘String of Pearls’.


This has sparked concern in India, which may discuss the issue of leasing of islands to foreign firms with Maldivian foreign minister Mohamed Asim on his visit to Delhi next month, people familiar with the matter said. Feydhoo Finolhu, previously used by the education ministry for school trips and cadet, scout, and girl guide activities, was among 11 islands and two lagoons listed by the tourism ministry in late October for leasing before the end of the year.

The Maldives had amended its law in July to allow the government to bypass competitive bidding process