Resorts will face no difficulties in converting 40 percent of their foreign exchange earnings; that is a certainty: President
31 އޯގަސްޓު 2026 | ހޯމަ 11:07President Dr. Muizzu has assured that the new foreign exchange regulations requiring resorts to convert 40 percent of their revenue will not hinder business operations. While the President maintained that these data-driven reforms are essential for economic growth, some stakeholders have expressed concerns regarding the potential impact on employee salaries.
President Dr. Mohamed Muizzu has ratified the Foreign Exchange Act Amendment Bill, along with six additional pieces of legislation, during a formal ceremony. | Presidents Office
President Dr. Mohamed Muizzu has stated that resorts will not face any difficulties under the new foreign exchange regulations, which mandate that 40 percent of their monthly revenue be converted into local currency. This replaces the previous optional arrangement where resorts could convert funds at a rate of $500 per tourist.
Speaking at a ceremony held to ratify the amendment to the Foreign Exchange Act alongside six other bills passed during Wednesday's parliamentary sitting, the President assured that the implementation of this law will not result in any changes to the existing legal provisions governing guesthouse businesses or Maldivians employed within the sector.
However, effective Tuesday, the optional provision allowing for a fixed conversion rate of $500 per tourist has been abolished. Resorts are now required to convert 40 percent of their total monthly revenue into local currency.
Acknowledging the concerns raised by some resorts regarding the matter, the President stated that this change was implemented following a thorough review of data and statistics by relevant authorities, including the Maldives Monetary Authority (MMA), the Ministry of Finance, and the Ministry of Economic Development.
The President stated that the government is confident that the 40 percent foreign exchange conversion requirement will not pose any difficulties for resorts.
The mandatory conversion of 40 percent of foreign currency earnings will not hinder the ability of resorts to repay loans, meet payroll obligations, or cover operational expenses. This is a certainty.President Muizzu
The President stated that the tourism industry generated $5.6 billion in revenue last year alone. However, he noted that only $3.8 billion of that total actually entered the Maldivian banking system.
The President noted that only 21 percent of those funds have been exchanged so far. He emphasized that the new amendments would increase foreign currency inflows, facilitating easier imports and streamlining the telegraphic transfer (TT) process for businesses through the Maldives Monetary Authority (MMA).
Despite the President's assurances, resort employees have begun signing a petition to protest the recent changes, following notifications that they will no longer receive salaries and service charges in US dollars in the coming days.
