The Whole House Committee of the People’s Majlis has passed a bill to establish new rules for leasing and developing uninhabited islands and lagoons in the Maldives.

The bill received the support of 66 MPs, while nine opposition MPs voted against it.

Submitted by North Thinadhoo MP Saudulla Hilmy on behalf of the government, the bill seeks to repeal the existing Uninhabited Islands Act (Act No. 20/98) and introduce new policies and procedures for the development and leasing of uninhabited islands and lagoons.

Under the proposed law, uninhabited islands may be developed for tourism, industrial, fishing, agricultural, economic, social and state purposes, as well as purposes specified under other laws.

Islands may be leased to Maldivian companies, businesses and registered organisations, as well as foreign companies or partnerships re-registered in the Maldives. Parts of an island may also be leased separately.

The bill allows leases of up to 21 years, with the relevant ministry or council able to extend leases for up to 50 years.

Annual rent would be set at MVR 3 per square metre for industrial and economic purposes, and MVR 2 per square metre for fishing, agricultural and social purposes.

Lagoons may be leased for large- and medium-scale industrial activities, large-scale economic activities and aquaculture. Lagoon rents would be MVR 3 per square metre for industrial and economic purposes and MVR 50 per square metre for fishing.

Those who violate the proposed law could face fines ranging from MVR 500,000 to MVR 1 million.