President Dr Mohamed Muizzu has offered strong assurances that the newly ratified amendments to the Foreign Exchange Act will not disrupt the operational costs or management of resort properties.
Speaking shortly after signing the government-sponsored bill into law, the President emphasised that the sweeping policy shift was formulated following rigorous academic and technical evaluations by industry experts.
Under the previous regulatory framework, tourism establishments were required to exchange either USD 500 per month for every arriving tourist or 20 percent of their total revenue. The updated legislation introduces a revised standard for Category-A tourism establishments, which are now mandated to convert 40 percent of their total monthly foreign currency revenue into Maldivian Rufiyaa (MVR).
Addressing potential concerns within the hospitality sector, President Muizzu maintained that comprehensive statistical data demonstrates the feasibility of the new threshold.
"The numbers show that this is not something that will cause difficulty to any resort. After deducting loans, salaries, and expenses, they can pay 40 percent in dollars. This is being done for the good and benefit of the citizens,” he said.
Highlighting the broader economic context, the President noted that while the tourism sector generated USD 5.6 billion last year, USD 3.8 billion entered the domestic banking system—yet only 21 percent of that amount was exchanged with banks. With the previous exchange rate hovering around 10 percent, the government aims to capture a greater share of foreign currency to stabilise the national economy.
President Muizzu called upon resort operators to view the transition as a vital national responsibility. He explained that the newly acquired foreign currency reserves will directly support public welfare, specifically facilitating Telegraphic Transfers (TTs) required to import essential goods into the island nation.
The President reiterated that the primary objective of the amended Foreign Exchange Act is to enhance public service delivery and drive positive economic change for all Maldivians.