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The Public Finance Committee’s move to complete the Foreign Exchange Act amendments in just 24 hours accelerates a key financial reform requiring resorts to surrender 20 percent of USD earnings while extending the parliamentary session to finalize the bill before recess.
News Desk
Parliament Committee on Public Accounts and financial matters reviewing bills - Photo: Majlis
MALÉ: The Public Finance Committee of the People’s Majlis has voted to fast-track its review of government-sponsored amendments to the Foreign Exchange Act, setting a deadline to finish all committee work within a single day.
The motion to expedite the review was proposed by ruling People’s National Congress (PNC) MP Mohamed Mamdhooh (Funadhoo) and seconded by independent MP Hannan Mohamed Rasheed (Guraidhoo). The committee approved the fast-track schedule unanimously.
Under the committee’s timeline, public and stakeholder feedback will close on Thursday at 11:30 AM, with the final committee report set to be completed by the end of the day.
The bill, introduced on behalf of the government by PNC MP Abdulla Sathar Mohamed (Holhudhoo), overhauls foreign currency surrender rules for tourism and non-tourism sectors:
Category A (Resorts): Scraps the current option allowing resorts to exchange a flat rate of $500 per tourist arrival. All resorts will now be required to convert 20 percent of their total monthly USD revenue into local commercial banks. High-end luxury resorts will face significantly higher conversion amounts as a result.
Special Banking Requirement: Resorts must deposit their foreign currency earnings into a designated account at a licensed bank operating in the Maldives and notify the Maldives Monetary Authority (MMA).
Category B (Guesthouses, Safari Vessels & Hotels): Regulations remain unchanged. Establishments in this category can continue choosing between exchanging $25 per tourist or 20 percent of monthly sales.
Category C (Non-Tourism USD Earners): The annual revenue threshold triggering mandatory dollar conversion is raised from $15 million to $25 million.
100% Maldivian-Owned Businesses: Required to exchange 7 percent of foreign currency earnings.
Foreign-Owned or Joint-Venture Businesses: Must continue exchanging 20 percent of earnings.
To facilitate the passage of the legislation before parliament goes into recess, the People’s Majlis voted today to extend the current parliamentary session beyond its scheduled conclusion on Saturday.
Lawmakers are expected to pass the bill into law before going on break. According to the draft legislation, the new foreign exchange rules will take effect on September 1.
