The Public Accounts Committee of Parliament convened on Wednesday to review the Foreign Currency Bill, with the meeting being closed to the public at the request of the Maldives Association for Tourism Industry (MATI). The bill, supported by the government, was introduced by the ruling People’s National Congress (PNC) parliamentary group leader, MP Ibrahim Falah from Inguraidhoo. It was passed to the Public Accounts Committee following a vote where 51 MPs were in favor and four against.
The meeting began with Vice Chairperson, MP Ahmed Saleem from Eydhafushi, announcing MATI’s request for a private session. Baarah MP Ibrahim Shujau proposed to honor this request, receiving support from Hanimaadhoo MP Abdul Ghafoor Moosa. The committee members unanimously agreed to hold the session behind closed doors.
The Foreign Currency Bill follows a controversial foreign exchange regulation implemented on October 1, mandating tourist establishments to exchange a fixed USD amount per tourist at local banks. This rule faced opposition from major players in the tourism sector who argued it is inequitable considering varying market segments and that many expenses are settled in USD.
In response, the Maldives Monetary Authority (MMA) drafted a Foreign Currency Bill and sought feedback from tourist establishments. The draft maintained a USD 500 exchange requirement for resorts while introducing some concessions. The final version presented to Parliament offers establishments an option: either exchange the fixed amount per tourist as previously mandated or convert 20 percent of their monthly revenue.
The bill distinguishes between two categories of tourist establishments. Category-A includes registered resorts, integrated tourist resorts, and private islands, which must either exchange USD 500 per tourist or 20 percent of monthly revenue. Category-B covers registered tourist vessels, hotels, and guesthouses, which must either exchange USD 25 per tourist or 20 percent of their monthly revenue.
