Government cuts Rasmalé reclamation project cost to US$330 million, says Minister
10 November 2026 - 07:48
The estimated cost of the Rasmalé land reclamation project has been significantly reduced, with the entire project now expected to cost approximately US$330 million, Minister of Construction, Housing and Urban Development Dr Abdulla Muththalib has said.
The Minister made the remarks while answering public questions during the 11th episode of the Ahaa Forum, organised jointly by the President’s Office and Public Service Media (PSM).
Dr Muththalib said that when the Rasmalé reclamation project began, the estimated cost of completing the entire project was between US$500 million and US$700 million.
He explained that the earlier estimates were based on government projects being undertaken at the time, prevailing market rates and the inclusion of coastal protection works.
However, as the reclamation work was carried out through different companies, the Government made efforts to reduce costs wherever possible. According to the Minister, these efforts have resulted in a substantial reduction in the overall project cost.
He said the Government aims to complete all reclamation work by the end of this year, with the total expenditure expected to be approximately US$330 million.
The Minister explained that this amount covers the reclamation of the entire 1,109 hectares of Rasmalé. Based on the same calculation, reclaiming 500 hectares would cost approximately US$160 million.
He said the earlier estimates were based on costs associated with previous government reclamation projects, including Gulhifalhu and Giraavaru Falhu. However, through the Government’s efforts to carry out the project at the lowest possible cost, the estimated expenditure has now been brought down to US$330 million.
Dr Muththalib also responded to claims being circulated about the project, which he said were intended to serve political interests and create fear among the public.
He specifically dismissed claims that between US$700 million and US$1 billion had already been spent on the Rasmalé reclamation project, describing them as baseless and false.