The future sovereignty of the British Indian Ocean Territory, commonly known as the Chagos Islands, is facing renewed controversy as the Maldives has requested a role in deciding the islands’ fate. Maldivian President Mohamed Muizzu addressed UK Labour Party figure Andy Burnham, calling for a “meaningful dialogue” on the matter and expressing disappointment over the Maldives not being consulted regarding the planned transfer of the islands to Mauritius.

The dispute centers on the British government’s agreement, supported by Labour leader Sir Keir Starmer, to hand over sovereignty of the Chagos Archipelago to Mauritius. The Maldives claims a stronger geographical and historical connection to the islands, arguing that it lies roughly 310 miles away—more than four times closer than Mauritius—and therefore has a more legitimate claim.

This development coincides with scheduled UK-Maldives talks intended to strengthen bilateral relations, but it has also added pressure to an agreement that has sparked opposition on several fronts. The deal faces criticism from the United States and the UK Conservative Party over security concerns tied to the military base on Diego Garcia, the largest island in the archipelago, which hosts a strategic UK-US airbase.

Financial aspects of the agreement have also come under scrutiny. Chancellor John Healey recently announced changes to the government’s methodology for evaluating the long-term costs of large projects, specifically lowering the social time preference rate from 3.5% to 3%. This adjustment is designed to encourage economic growth but has the effect of increasing the calculated expense of major government commitments.

As a result, the estimated cost of the Chagos sovereignty transfer has risen from £3.39 billion to approximately £3.68 billion. This increase means UK taxpayers will bear an additional £288 million to lease back Diego Garcia from Mauritius to maintain the military base.

The UK Foreign Office reiterated that the question of sovereignty is a bilateral matter between the United Kingdom and Mauritius, noting that previous governments initiated the negotiations. However, with the Maldives now pressing for inclusion in the discussions, the issue remains complex and unresolved amid competing national interests and strategic considerations.