President Dr. Mohamed Muizzu's Tourism Advisor, Mohamed Khaleel, resigned from his position today.

Although he did not state the reason for his resignation, Chief Government Spokesperson Mohamed Hussain Shareef (Mundhu) confirmed Khaleel's resignation.

Khaleel serves as the Managing Director of Pulse, a large-scale resort management company, and is also a shareholder of Manta Air.

Khaleel, who holds business interests in the tourism sector, resigned from his role as the President's Tourism Advisor today after the Parliament passed amendments to the Foreign Exchange Act requiring those earning revenue in foreign currency, including resorts and guesthouses, to convert 40 percent of their foreign currency revenue to local banks every month.

Khaleel's company, Pulse, had previously opposed the regulation introduced by the Maldives Monetary Authority (MMA) requiring the conversion of dollars.

According to the bill, the 40 percent foreign currency conversion requirement is set to commence on the first of next month.

The parliament passed this amendment today despite the Maldives Association of Tourism Industry (MATI) stating that converting 40 percent of dollar revenue is unsustainable for resort operators, given their heavy reliance on dollars for services and operations.

In a statement released by the association, MATI noted that resorts incur significant expenditures in dollars, including fuel, salaries, service charges, taxes (TGST, Green Tax, Withholding Tax, and Income Tax), lease rents, and foreign currency debt service, making a 40 percent conversion rate un-viable for the industry to bear.

Although allegations were raised following an investigation that some resort operators engage in unlawful transactions and contribute to driving up black market exchange rates, MATI stated it has received no information regarding such activities. MATI added that the association always urges all resort operators to strictly comply with laws and regulations.