Island-leasing law ratified with new rent structure and expanded presidential powers

The bill passed by Parliament to further reinforce the President’s direct authority to allocate and lease uninhabited islands and lagoons for various purposes was ratified on Monday.

The new law, approved by the government’s super-majority on Wednesday, will come into force on October 1.

Under the Act, the President holds full powers to allocate uninhabited islands and lagoons for tourism, industrial activities, fisheries, agriculture, social purposes and State use. The President is also empowered to determine the purpose for which lagoons will be allocated and the agency to which they will be handed over.

According to the Act, uninhabited islands may be leased for 21 years, with the option for the relevant ministry or local councils to extend the lease period to 50 years.

The revised lease rates are:

• MVR 3 per sqm per annum for industrial and economic uses  

• MVR 2.50 per sqm for fisheries and agriculture  

• MVR 2 per sqm for social uses  

• MVR 0.50 per sqm for lagoons leased for fishing purposes  

The Act also requires the lease schedule and details of all uninhabited islands to be shared with the Anti-Corruption Commission (ACC) and the Auditor General’s Office.

Under the previous legal framework, in force since 1998, the President already held final authority to allocate uninhabited islands.