News Desk
In a significant move to formalise the management of the nation’s vast natural assets, the government has introduced a comprehensive “Uninhabited Islands and Lagoons Leasing Bill” to the People’s Majlis. The proposed legislation seeks to replace ad-hoc administrative practices with a structured, transparent legal framework for the commercial and social utilisation of state-owned land.
The Bill, tabled today by PNC member for Thinadhoo North, Saudullah Hilmy, comprises 75 articles across eight chapters. It is being touted as a cornerstone reform intended to maximise the economic dividends derived from the country’s uninhabited islands and lagoons.
Centralised Oversight and Lease Terms
Under the provisions of the proposed law, the authority to designate the purpose and use of uninhabited islands rests with the President. The legislation establishes a standard lease term of 21 years, with a provision that allows for an extension up to 50 years, subject to the approval of relevant ministries and local councils.
The Bill explicitly categorises the permitted uses for these islands, spanning tourism, industrial development, fisheries, agriculture, and various other socio-economic and state-sanctioned purposes.
A New Pricing Structure
To ensure fiscal clarity, the Bill introduces a fixed pricing model based on square metre usage:
- Industrial and Economic Use: MVR 3 per square metre per annum.
- Fisheries and Agriculture: MVR 2.50 per square metre per annum.
- Social Use: MVR 2 per square metre per annum.
Lagoons, which are to be leased for activities including large and medium-scale industrial projects, economic enterprises, and aquaculture, are also subject to a tiered rate. Industrial and economic lagoon leases are set at MVR 3 per square metre, while those dedicated to fisheries are priced at MVR 0.50 per square metre.
Transparency and Accountability
Perhaps the most notable aspect of the legislation is its emphasis on oversight. To mitigate long-standing concerns regarding corruption and lack of clarity in state land dealings, the Bill mandates that detailed information regarding all lease agreements must be shared with the Anti-Corruption Commission (ACC), the Auditor General’s Office, and the relevant line ministries.
The legislation also paves the way for short-term revenue generation, permitting islands to be leased on a five-year “varuva” (usufruct) basis.
Eligibility for commercial leasing is extended to Maldivian-registered companies, partnerships, and sole traders, as well as foreign-registered corporate entities and partnerships, signalling a move to encourage broader investment.
Introducing the Bill, Thinadhoo North MP Saudullah Hilmy (PNC) underscored its importance as a strategic step toward modernising the nation’s asset management. “This is not merely about leasing land; it is about establishing a transparent system that guarantees the state receives its fair economic due,” he noted.
As the Majlis prepares for the debate stage, the Bill is expected to draw scrutiny from stakeholders eager to see whether these measures will indeed curb the informal practices that have historically plagued the leasing of the archipelago’s most valuable, yet neglected, assets.