New law sets rental rates for uninhabited islands

President Dr Mohamed Muizzu has ratified a new law establishing rules for leasing and allocating uninhabited islands and standalone lagoons for non-tourism purposes.

The Bill on Leasing Uninhabited Islands and Lagoons was ratified at a ceremony held at the President’s Office today.

The People’s Majlis passed the bill on August 26 during its 28th sitting of the second session of 2026.

The new law covers the use of uninhabited islands and lagoons for economic, industrial, fisheries, agricultural and social purposes.

It also introduces rules for granting unallocated uninhabited islands under “varuvaa” arrangements for maintenance purposes.

The law introduces new rental rates for uninhabited islands. Previously, islands were leased at MVR 0.10 per square metre.

The revised rates are:

• MVR 3 per square metre for industrial and economic purposes

• MVR 2.50 per square metre for fisheries and agricultural purposes

• MVR 2 per square metre for social purposes

• MVR 2 per square metre annually for islands granted under ‘varuvaa’

The law also sets out which authorities can allocate uninhabited islands.

The President will generally designate islands and lagoons for specific purposes. Local councils will allocate islands under their jurisdiction, except when they are intended for tourism, industrial development or State purposes.