Emergency motion over 40 percent foreign currency exchange requirement for resorts rejected
26 އޯގަސްޓު 2026 | ބުދަ 09:48The Parliament has rejected an emergency motion claiming that the mandatory conversion of 40 percent of resort foreign currency earnings into local banks would harm the economy. The motion was dismissed on the grounds that parliamentary regulations prohibit such debates while a bill to amend the Foreign Exchange Act is already under committee review. Representatives of the tourism industry have expressed grave concerns over the policy, warning that it could erode investor confidence and pose significant operational challenges for businesses.
Mauroof Zakir, Member of Parliament for the Kendhoo constituency. | People's Majlis
The Parliament has rejected an emergency motion seeking to halt the government's decision to mandate resorts to exchange 40 percent of their foreign currency earnings through the Maldives Monetary Authority (MMA). The motion argued that the policy would have detrimental effects on the country's entire economy.
The emergency motion was introduced during Wednesday's People's Majlis session by the Member of Parliament for the Kendhoo constituency, Mauroof Zakir. In the motion, the MP highlighted that tourism serves as the primary pillar of the Maldivian economy. He warned that the government's sudden proposed changes aimed at retaining a larger portion of the industry's foreign exchange earnings could cause significant shocks to both the sector and the national financial system, potentially leading to a loss of investor confidence.
The emergency motion highlighted that the government's decision to amend the law to mandate the exchange of 40 percent of total foreign exchange earnings—replacing the current requirement of $500 per tourist or 20 percent of income—would cause significant shocks to both the tourism industry and the broader economy. Furthermore, the motion noted that Maldives Monetary Authority (MMA) Governor Ahmed Munawwar has disclosed plans to shorten the foreign currency conversion period from three months to one month, alongside the establishment of new regulations to monitor the expenditure of funds not exchanged through the banks.
The emergency motion states that while the authorities claim this decision is intended to control the dollar exchange rate and bolster the Maldives Monetary Authority’s (MMA) reserves, tourism industry experts warn that the move will, in reality, cripple businesses.
Furthermore, the case highlights that the Maldives Association of Tourism Industry (MATI), which represents 146 resorts across the country, has also stated that the requirement to exchange 40 percent of foreign currency revenue is neither feasible nor sustainable. The member noted that resorts are required to settle expenses for fuel, staff salaries, service charges, and taxes in US dollars, in addition to servicing substantial foreign loans; consequently, implementing such a decision without prior consultation was described as a significant injustice.
Therefore, the government has been urged to consult with all stakeholders in the tourism sector to find a fair and sustainable solution to the issue before it inflicts significant damage on the economy.
However, the presiding officer, Deputy Speaker and Member for Eydhafushi constituency Ahmed Saleem, ruled that the emergency motion submitted by the Member for Kendhoo constituency was inadmissible under the parliamentary rules of procedure.
In this regard, Saleem noted that Section 197(i) of the Parliamentary Rules of Procedure stipulates that an emergency motion must not pertain to a subject already under debate through a bill or another matter currently before the Parliament. The Speaker further ruled the motion inadmissible, citing that the Public Accounts Committee's report on the proposed amendments to the Foreign Exchange Act had already been scheduled on the agenda for the current sitting.
