Government proposes new law on leasing uninhabited islands and lagoons

The bill states that islands and lagoons designated for various purposes will be assigned by the Ministry of Economic Development to the relevant government ministry.

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An uninhabited local island.-- Photo: Mihaaru

Malika Shahid

2026-07-29 14:10:25

The government has submitted a bill to Parliament seeking to repeal the Uninhabited Islands Act, which has been in force for 28 years, and replace it with a new Uninhabited Islands and Lagoons Lease Act.

The bill, submitted on behalf of the government by Thinadhoo North MP Saudulla Hilmy, was presented for its first reading in Parliament today.

The proposed legislation would give the President the authority to determine the permitted use of uninhabited islands and lagoons in most cases, with limited exceptions.

The existing law governs the leasing of uninhabited islands for purposes other than tourism. Under the proposed legislation, islands designated for tourism would also be regulated under the new Act.

One of the key changes is the inclusion of lagoons alongside uninhabited islands as assets that can be leased.

The bill states that islands and lagoons designated for various purposes will be assigned by the Ministry of Economic Development to the relevant government ministry.

Under the proposed law, uninhabited islands may be leased for:

  • Industrial activities
  • Tourism
  • Fisheries
  • Agriculture
  • Economic activities
  • Social purposes
  • Government use
  • Other special purposes prescribed under separate legislation

Lagoons, however, may not be leased for agricultural or social purposes.

The bill also sets out provisions governing the allocation process for uninhabited islands and lagoons, lease periods, and the method for determining lease payments.

In addition, it outlines the responsibilities of local councils in relation to government-controlled islands and lagoons, as well as islands and lagoons that fall within the jurisdiction of inhabited islands.