Majlis accepts and sends bill to committee requiring resorts to exchange 20 percent of USD earnings
12 އޯގަސްޓު 2026 | ބުދަ 10:47The Parliament has accepted and forwarded the government-proposed amendment to the Foreign Exchange Act to the Public Accounts Committee for further review. This bill aims to strengthen foreign exchange regulations by mandating that resorts convert 20 percent of their foreign currency earnings into local currency, while also including provisions to ease conversion requirements for businesses that are 100 percent Maldivian-owned.
Member of Parliament for the Holhudhoo constituency, Abdul Sattar Mohamed | People's Majlis
The People's Majlis has accepted a government-proposed amendment bill that mandates resorts to exchange 20 percent of their monthly revenue into local currency, effectively abolishing the previous optional arrangement of exchanging $500 per tourist.
During Wednesday's parliamentary sitting, the first reading and subsequent debate were held for the bill to amend the Foreign Exchange Act, submitted on behalf of the government by Holhudhoo MP Abdul Sattar Mohamed. Following the conclusion of the debate, the bill was put to a vote and was unanimously accepted by all 57 members present. The bill has now been forwarded to the Public Accounts Committee for further review.
The government stated that the bill was introduced to review the criteria for identifying entities required to deposit and exchange foreign currency earnings under the Foreign Exchange Act. The amendment further aims to strengthen the regulations governing foreign currency exchange requirements for Category A establishments.
The bill also aims to ease foreign currency conversion requirements for businesses that are 100 percent Maldivian-owned, excluding those in the tourism and financial sectors. Furthermore, it seeks to provide concessions for businesses facing challenges in meeting the legally mandated conversion amounts and deadlines.
The bill proposes to abolish the current discretionary provision that allows for foreign currency exchange at a flat rate of $500 per tourist. Consequently, once this amendment is passed and implemented, resorts will be required to exchange 20 percent of their total monthly revenue. This change is expected to significantly increase the amount of foreign currency that high-end resorts are mandated to exchange.
While all resorts have been designated as Category A tourist service providers, Category B includes guesthouses as well as safaris and other tourist vessels.
The bill mandates that all resorts must deposit their US dollar earnings into specialized accounts opened at banks licensed to operate in the Maldives, with a requirement to report these transactions to the Maldives Monetary Authority (MMA). Furthermore, the legislation proposes that businesses outside the tourism sector which are 100 percent Maldivian-owned be required to convert 7 percent of their foreign currency earnings. For businesses without full local ownership, the bill stipulates that the conversion requirement remains at the current rate of 20 percent of their total earnings.
