President Muizzu Ratifies Seven Laws to Boost Economy and Curb Dollar Market

President Mohamed Muizzu has ratified seven new bills intended to modernize the Maldives' legal framework and accelerate the nation's path toward becoming a developed economy by 2040. During a ceremony at the President’s Office, the President emphasized that each piece of legislation was developed following extensive technical studies to ensure direct benefits for Maldivian citizens. A primary focus of the new laws is the amendment to the Foreign Currency Act. President Muizzu stated that this reform aims to provide economic relief and stabilize the volatile parallel-market exchange rates for US dollars. While implementing new requirements for the surrender and exchange of foreign currency, the President assured that these measures would not disrupt resort operations or affect employees receiving US dollar-denominated salaries. Crucially, the President issued a stern warning to employers, stating that the new legislation must not be used as a justification to reduce or withhold salaries paid in dollars. He called for full cooperation between the tourism industry and enforcement authorities to protect workers' earnings. Tax reforms are also central to the legislative package. Amendments to the Goods and Services Tax (GST) Act were introduced following the adoption of the destination principle in tourism, while changes to the Income Tax Act adjust withholding rates for foreign construction firms. These measures are designed to create a fairer competitive environment for Maldivian businesses seeking government contracts. Additionally, the Tax Administration Act has been amended to restore critical enforcement powers to the Maldives Inland Revenue Authority (MIRA). Beyond finance, the government is targeting economic diversification and infrastructure. New laws regarding the leasing of uninhabited islands and lagoons aim to open new revenue streams, while amendments to the Maldives Fisheries Act seek to protect national waters and expand aquaculture and sports-fishing harbors. To address urban challenges, the President ratified new Land Transport legislation specifically designed to enhance road safety and alleviate the chronic traffic congestion in the capital, Malé. President Muizzu concluded that these reforms are essential for protecting citizens' rights and ensuring the impartial application of justice. All seven laws have now been officially published in the Government Gazette.