Majlis accepts bill on leasing uninhabited islands and lagoons; Whole House Committee to conduct review
10 އޯގަސްޓު 2026 | ހޯމަ 09:03The Parliament has referred a bill governing the lease and administrative allocation of uninhabited islands and lagoons for various purposes to the Committee of the Whole House for further review. The proposed legislation outlines the specific sectors eligible for leasing, establishes square-meter rental rates, and introduces penalties of up to MVR 1 million for regulatory violations. Furthermore, the bill empowers ministries and local councils to lease these state-designated properties for periods of up to 50 years.
Uninhabited islands located near GA. Kolamaafushi. | GaKolamaafushi Twitter
The People's Majlis has accepted a bill 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 'Varuvaa' leasing of unallocated islands and sets comprehensive guidelines for the management of such islands and lagoons.
During Monday's sitting of the People's Majlis, a vote was held on the acceptance of a government-sponsored bill introduced by Saudulla Hilmy, the Member of Parliament for the Thinadhoo North constituency. The bill was accepted by the Parliament with a majority of 57 members in favor, while eight members voted against it. Following the vote, the bill was referred to the Committee of the Whole House for further review.
The bill comprises 75 articles organized into eight chapters. It stipulates that uninhabited islands may be leased for tourism, industrial activities, fisheries, agriculture, and other economic or social purposes, as well as for state requirements.
Under these regulations, islands leased for industrial and economic purposes are priced at an annual rent of MVR 3 per square meter. For islands allocated for fisheries and agricultural activities, the rent is set at MVR 2.50 per square meter. Meanwhile, islands leased for social purposes carry an annual rent of MVR 2 per square meter.
Regarding the leasing of lagoons, the bill stipulates that such areas may be allocated for large-scale and medium-scale industrial operations. Furthermore, leases may be granted for large-scale economic activities, as well as for aquaculture and its related ventures.
The rental rate for lagoons leased for such purposes is set at MVR 3 per square meter. Meanwhile, lagoons leased 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. Furthermore, while it grants the power to lease these areas 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.
The bill also outlines the specific circumstances and procedures under which islands may be leased under the leasing system, in addition to standard leasing arrangements.
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 accompanying regulations, with the severity of the measures to be determined by the nature of the offense.
Under these regulations, violations involving uninhabited islands leased under the leasing system may incur fines of up to MVR 500,000, depending on the severity of the offense. For violations concerning leased lagoons or uninhabited islands, fines can reach up to MVR 1 million based on the gravity of the crime, while offenses involving any other uninhabited islands are subject to fines of up to MVR 500,000.
