President Gains Wider Powers as Uninhabited Island Lease Rates Rise Under New Law
31 އޯގަސްޓު 2026 | ހޯމަ 18:15The bill outlines the procedures for designating islands for various economic and social purposes, effectively repealing the previously enacted Uninhabited Islands Act.
President ratifies bill on leasing of uninhabited islands and lagoons. | President's Office
President Dr. Mohamed Muizzu has ratified the "Uninhabited Islands and Lagoons Leasing Bill," which grants the President the authority to designate uninhabited islands and standalone lagoons for various purposes. The legislation outlines the procedures for the allocation, leasing, and management of these areas. The President signed the bill into law during a special ceremony held at the President's Office on Monday afternoon.
This bill was passed by the People's Majlis during the 28th sitting of its second session of 2026, held on August 26, 2026.
The bill outlines the regulations for leasing uninhabited islands for purposes other than tourism, specifying the conditions and procedures for such agreements. It details the framework for designating uninhabited islands and lagoons for various economic, industrial, and social activities. Furthermore, the legislation establishes the procedures for leasing unassigned islands under the "Varuvaa" system for maintenance and upkeep.
Currently, rent for uninhabited islands is charged at a rate of 10 laari per square meter. However, the proposed bill sets new rates: 3 Rufiyaa per square meter for industrial and economic purposes, 2.50 Rufiyaa per square meter for fisheries and agriculture, and 2 Rufiyaa per square meter for social purposes. Furthermore, the bill stipulates that islands leased under the "Varuvaa" system will be subject to an annual rent of 2 Rufiyaa per square meter.
Under the framework established in the bill, the President shall designate uninhabited islands and lagoons to be leased for various purposes. However, for uninhabited islands falling within the jurisdiction of local councils, the councils themselves shall determine their allocation for various uses, with the exception of lands designated for tourism, industrial purposes, or state requirements.
The provisions of this Bill shall come into effect 30 days after it is ratified and published in the Government Gazette. Upon its commencement, Law Number 20/98 (Uninhabited Islands Act of the Maldives) shall be repealed.
