Manta Khaleel leaves president’s side after Parliament passes strict FX control bill

President Muizzu’s Tourism Advisor, Mohamed Khaleel, has resigned.

He stepped down shortly after Parliament passed a foreign exchange bill on Wednesday banning the publication of black-market dollar rates, prohibiting the sale of foreign currency above the MMA-mandated rate, and requiring resorts to deposit 40 percent of their dollar earnings into local banks.

The bill, submitted by PNC MP Abdul Sattar Mohamed on behalf of the government, initially required resorts to pay 20 percent of their revenue at USD 500 per tourist. After the committee completed its review and forwarded the bill to Parliament, it was sent back for further amendments.

The amendment comes at a time when many in the tourism sector have expressed concern over the bill.

The reforms were announced by MMA Governor Ahmed Munawar as part of efforts to strengthen the Maldives’ foreign exchange regime. The Maldives Association of Tourism Industry (MATI) was not present for proper consultation during the committee stage.

In a statement, MATI said its executive board was summoned to the President’s Office on Tuesday for an emergency meeting attended by cabinet ministers and senior government officials. During the meeting, the government said investigations had revealed that some resort operators were involved in black-market foreign currency trading and illegal transactions that contributed to the appreciation of the dollar.

MATI said it was not aware of any such activity.

At a press conference on Wednesday, the government announced the decision to increase the official dollar exchange rate.

MATI said it did not believe it was appropriate to impose a blanket policy on the entire industry based on allegations against individual operators. The association said it was neither valid nor fair to claim that resort operators alone were responsible for black-market price increases.

Khaleel resigned from his post as Tourism Advisor while Visit Maldives Corporation CEO and Managing Director Ibrahim Shiuree also resigned on Wednesday.