Parliament Approves Amendment to Tourism Act, Shortens Lease Extension Payment Period

Parliament has approved an amendment to the Tourism Act that reduces the payment period for extending leases on islands and lands used for tourism from two years to six months. 

The amendment was passed during a session yesterday. The bill, sponsored by Dhangethi MP Abdulla Rasheed, amends Article 9 of the Tourism Act. It was submitted to parliament during last Tuesday’s sitting and subsequently reviewed by the Whole House Committee. The committee approved the bill last Thursday, and it was passed by parliament with 76 votes in favour and none against.

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Under the current law, payment for lease extensions of up to 50 years must be completed within two years. The new amendment reduces this period to six months.

Lessees who opt to settle the payment within six months will be required to pay USD 100,000 for each year of extension. Those who choose a payment period longer than six months will face a higher fee of USD 200,000 per year of extension.

The bill also mandates that lessees must clear all outstanding leases, fines, taxes, and fees owed to the state, excluding lease payments and fines that have been extended through agreements with the Ministry of Tourism.