New Bill on Leasing Uninhabited Islands and Lagoons: Violations to carry fines of up to MVR 1 million
29 ޖުލައި 2026 | ބުދަ 08:53The government has submitted a bill to Parliament outlining the pricing and regulations for leasing uninhabited islands and lagoons for economic, social, and industrial purposes. Under this proposed legislation, the President is granted the authority to lease these properties, while parties found in violation of the regulations could face fines of up to MVR 1 million.
Uninhabited islands located near GA. Kolamaafushi. | GaKolamaafushi Twitter
A bill has been introduced to the People’s Majlis to repeal the existing Uninhabited Islands Act and establish a new legal framework for the designation and leasing of uninhabited islands and lagoons for various purposes. The proposed legislation also outlines procedures for the traditional leasing of unallocated islands under the 'Varuvaa' system and sets comprehensive guidelines for the management of such islands and lagoons.
The bill, titled the Uninhabited Islands and Lagoons Leasing Act, was introduced on behalf of the government by Saudullah Hilmy, the Member of Parliament for the Thinadhoo North constituency. The proposed legislation comprises 75 articles organized into eight chapters.
The bill stipulates that uninhabited islands may be leased for tourism, industrial purposes, fisheries, agriculture, and other economic activities, as well as for social and state-related purposes.
Under these regulations, islands leased for industrial and economic purposes are priced at an annual rent of MVR 3 per square meter. For fisheries and agricultural projects, the lease rate is set at MVR 2.50 per square meter. Meanwhile, islands allocated for social purposes carry an annual rent of MVR 2 per square meter.
The bill outlines the framework for leasing lagoons, specifying that they may be allocated for large-scale and medium-scale industrial operations, as well as large-scale economic projects, aquaculture, and aquaculture-related activities.
The rental rate for lagoons leased for such purposes is set at MVR 3 per square meter. Meanwhile, lagoons allocated for fishing-related activities are charged at a rate of 50 laari per square meter.
The bill stipulates that the authority to designate uninhabited islands and lagoons for various purposes is vested in the President. While it grants the power to lease these properties for an initial period of 21 years, the bill also provides ministries and councils with the discretion to extend the lease duration to 50 years.
In addition to leasing, the bill outlines the specific circumstances and procedures under which islands may be granted under the 'Varuvaa' system.
The bill stipulates that the relevant ministry or local council shall have the authority to take punitive action against those who violate the Act or its subsequent regulations, with the severity of the measures determined by the nature of the offense.
Under these regulations, violations involving uninhabited islands leased under the 'Varuvaa' system may incur fines of up to MVR 500,000, depending on the severity of the offense. Furthermore, offenses related to leased lagoons or uninhabited islands are subject to fines of up to MVR 1 million based on the gravity of the violation, while infractions involving any other categories of uninhabited islands may result in fines of up to MVR 500,000.
