A new bill titled the “Bill on Leasing Uninhabited Islands and Lagoons” was submitted to the People’s Majlis today, aiming to modernize regulations and establish a transparent framework for the economic utilization of the Maldives’ natural assets.

The legislation was introduced on behalf of the government by MP Saudulla Hilmy, representing the Thinadhoo North constituency. If passed, the bill will repeal the existing Law on Uninhabited Islands. Under the proposed framework, the President retains the authority to designate islands for tourism and industrial purposes. Conversely, City and Local Councils will be granted jurisdiction over islands within their boundaries for other uses, though these islands will revert from council jurisdiction if later designated for tourism or industrial development.

The bill outlines specific annual lease rates per square meter. For uninhabited islands, the rates are set at MVR 3 for economic and industrial use, MVR 2.50 for agriculture and fisheries, and MVR 2 for social purposes. For lagoons, economic and industrial activities will be charged MVR 3 per square meter, while fisheries-related projects will benefit from a lower rate of MVR 0.50.

Environmental protection is a core component of the bill. It mandates that environmental and social impact assessments must be conducted before any lease is granted, ensuring that the natural characteristics of the site are suitable for the proposed activity. Furthermore, the bill explicitly prohibits the use of protected areas for commercial leasing.

To ensure compliance, the legislation introduces stringent penalties. Violations of the law concerning leased properties can result in fines up to MVR 1 million. For issues related to traditional “Varuvaa” leases and other uninhabited islands, fines may reach MVR 500,000. Additionally, councils will assume administrative responsibility for all uninhabited islands not under Varuvaa lease and must submit an annual list of leased properties to the Ministry of Finance.