Many resorts refuse to send details of foreign currency transactions despite being ordered to do so
Business experts warn that frequent changes to laws and regulations are making the Maldives an increasingly challenging and unstable environment for investors
Rahaa Resort
Many resorts have refused to send the details of all foreign currency transactions conducted over the past two months, despite the Maldives Monetary Authority (MMA) instructing them to do so.
In an email sent to resorts on Wednesday, the central bank of Maldives highlighted that details of all foreign currency transactions conducted over the past two months must be sent before 4pm on Thursday, December 26.
However, many resorts have refused to send this information. RaajjeMV understands that the reason given by resorts for the decision is that resorts operate under agreements, and this order is contrary to those agreements.
While many resorts have decided not to send this information, the central bank emailed resorts on Wednesday stating that details of all foreign currency transactions must be sent. They were instructed to forward the information on Thursday. RaajjeMV understands that it is also a major concern for resorts that they have been instructed to provide information contrary to the agreement on such short notice.
RaajjeMV was able to obtain a copy of the email sent by the central bank to resorts giving very short notice, which states that the information must be sent by email and in accordance with the format in the Excel sheet provided by the authority.
As the MMA issues sudden orders to resorts with little notice, reports indicate growing dissatisfaction among resort operators regarding the handling of these directives.
Experts in the sector continue to say that resorts in the Maldives are major investments made by private parties taking big risks, and resorts are operated under an agreement between the Ministry of Tourism and the resort operator. Without making any changes to the agreement, the central bank is imposing various requirements on resorts outside of it, creating major difficulties in resort operations.
Business experts warn that frequent changes to laws and regulations are making the Maldives an increasingly challenging and unstable environment for investors.
