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Parliament has passed a new bill consolidating sole authority under the President to allocate uninhabited islands and lagoons for various economic, industrial, and social uses while establishing fixed lease rates and terms.
News Desk
President Muizzu in a cabinet meeting - Photo: President Office
MALÉ: The People’s Majlis has passed legislation granting the President expanded powers to allocate and lease uninhabited islands and lagoons across the country for various commercial, state, and community uses.
The bill was approved during Wednesday’s sitting with 47 members voting in favor while 12 lawmakers voted against it.
Under the newly passed law, the authority to designate uninhabited islands and lagoons for specific purposes rests directly with the President. Islands will be leased for an initial period of 21 years, which can be extended up to 50 years by relevant ministries or local councils.
Key provisions, categories, and rental rates outlined in the bill include:
Permitted Uses: Islands can be leased for tourism, industrial development, fisheries, agriculture, social purposes, state needs, and general economic activities.
Island Lease Rates: MVR 3.00 per square meter annually for industrial and economic use; MVR 2.50 per square meter for fisheries and agriculture; and MVR 2.00 per square meter for social purposes.
Lagoon Lease Uses & Rates: Lagoons can be leased for large and medium-scale industrial work, economic projects, and aquaculture. Rent is set at MVR 3.00 per square meter for industrial/economic use and MVR 0.50 per square meter for fisheries.
Eligible Lessees: Leases can be granted to locally registered companies, partnerships, sole proprietorships, and re-registered foreign businesses.
Oversight & Short-Term Leases: Details of all leased islands must be shared with the Anti-Corruption Commission (ACC) and the Auditor General’s Office, while short-term agricultural leases (Varuvaa) are permitted for up to five years.
