Committee of the Whole House passes bill on leasing uninhabited islands and lagoons
18 އޯގަސްޓު 2026 | އަންގާރަ 08:49This bill outlines the sectors for which islands and lagoons may be leased, specifies the rental rates per square meter, and establishes a framework for imposing fines of up to MVR 1 million for regulatory violations. Furthermore, the legislation empowers ministries and local councils to lease such properties, as designated by the President, for periods of up to 50 years.
Saudulla Hilmy, Member of Parliament for the North Thinadhoo constituency. | Majlis
The Whole House Committee has passed a bill outlining the regulations for leasing and allocating uninhabited islands and lagoons for various purposes.
This government-sponsored bill was introduced to Parliament by Saudullah Hilmy, the Member of Parliament for the North Thinadhoo constituency.
The Committee of the Whole House has approved the report submitted by its subcommittee (the Economic Committee) regarding the bill. The report was passed with 66 members voting in favor, while 9 members voted against it.
The bill comprises 75 articles organized across 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, the annual lease rate for islands allocated for industrial and economic purposes is set at MVR 3 per square meter. For islands designated for fisheries and agricultural use, the annual rent is MVR 2.50 per square meter. Additionally, islands allocated for social purposes will be leased at an annual rate 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 allocated for fishing-related activities are charged at a rate of 50 laari per square meter.
The bill stipulates that the President holds the authority to designate uninhabited islands and lagoons for various purposes. 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.
The bill also outlines the specific circumstances and procedures under which islands may be granted under the "Varuvaa" system, in addition to standard leasing arrangements.
The bill stipulates that the relevant ministry or local council shall have the authority to take enforcement action against those who violate the Act or its accompanying regulations, with penalties to be determined based on the severity 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 offenses involving any other uninhabited islands may result in fines of up to MVR 500,000.
