Councils given power to set lease for nonresidential land

Ministry of National Planning, Housing and Infrastructure on Sunday publicized an amendment to the regulation on issuing land for nonresidential purposes - in which island councils were given the power to dictate the minimum lease payment.

The amendment which has now been published in the gazette marks the fourth time changes were brought to the regulation.

According to it, the minimum lease payment set for any land given for various purposes must be publicized on the gazette.

Moreover, the regulation states that the lease amount should be based on the financial capability, overall economic status and demand for land in the land.

In this regard, based on the aforementioned factors, the council has the power to revise these prices once every two years.

Although the councils now have the power to set minimum lease payments, land issued for tourism-related purposes still come under the Tourism Act.