Nasheed warns 40% dollar conversion will bankrupt resorts and wipe out jobs

Forcing resorts to convert 40 percent of their dollar income will irrevocably bankrupt resort businesses and harm all industries connected to them, opposition MDP Chairman and former President Mohamed Nasheed said on Saturday.

Parliament passed a bill on Wednesday requiring 40 percent of resort revenue to be converted. The Foreign Exchange Act Amendment Bill, moved by PNC MP Abdul Sattar Mohamed on behalf of the government, initially required resorts to deduct USD 500 per tourist and convert 20 percent of their revenue.

After the committee completed its review and forwarded the bill to Parliament, it was sent back for further amendments.

In this regard, Nasheed wrote on X that resort businesses are likely to go bankrupt if they are forced to convert 40 percent of their foreign currency earnings into Maldivian rufiyaa.

Raajjeyge qudhrathee vaseelaiythah beynun kohgen thanavaskan hoadhenee viyafaari veriyaa ves masahkaiy kuraa meehaa ves hureethee. Viyafaari veriyaa hoadhaa muhsandhi kamakee eynaage masahkathun hoadhaa muhsandhu kameh. E muhsandhikan gulhifaivanee mulhi gaumuge enmengeves…

— Mohamed Nasheed (@MohamedNasheed) August 29, 2026

He wrote:  

“Prosperity comes from the use of our natural resources, because there is both the entrepreneur and the worker. The wealth earned by the entrepreneur is the result of his labour, and that wealth is tied to the prosperity of everyone across the country.”

Nasheed said the bankruptcy of resort businesses would lead to widespread job losses among resort employees and severely impact all businesses linked to the tourism sector.

In an earlier post, he described forcing resorts to convert 40 percent of their revenue as a major threat to investor confidence and the long-term stability of the tourism industry.

At a press conference on Monday, MMA Governor Ahmed Munawar said he had decided to propose an amendment to the Foreign Exchange Act requiring resorts to deposit 40 percent of their dollar income in Maldivian banks. Parliament later amended the Act to mandate the 40 percent conversion.

The Maldives Association of Tourism Industry (MATI) has also issued a statement expressing concern over the Governor’s remarks, stating that 40 percent of the dollar revenue received by resorts must be deposited in Maldivian banks.