Govt proposes shortening payment period for lease extensions on resorts

The government has submitted an amendment to the Tourism Act to shorten the payment period for extensions to the lease of islands and land issued for tourism from two years to six months.

The bill, sponsored by Dhangethi MP Abdulla Rasheed, are amendments to Article 9 of the Tourism Act.

The law currently stipulates that the payment for lease extensions of up to 50 years must be settled within two years. But with the new amendment – the payment period will be shortened to six months.

As such, those who agree to settle the payment within six months will need to pay USD 100,000 for each year of extension. Those who agree to settle the payment over a period of more than six months will be required to pay USD 200,000 for each year of extension.

The bill also stipulates that lessees must settle all outstanding leases, fines, taxes and fees owed to the state. This does not include the lease payments and fines extended through agreements with the Tourism Ministry.