The recently ratified act seeks to redetermine rent rates for uninhabited islands where these islands had been leased at low rent rates years ago, with the changes to be seen within six months.
President Dr. Mohamed Muizzu ratified the bill on Leasing Uninhabited Islands and Lagoons on Monday, with it stating that the previous act will be repealed once the new one comes into force one month after ratification and publication in the Gazette.
According to the new act which states rent rates for uninhabited islands will be set based on how the island will be used, the current agreements for islands that have been leased will need to be amended to abide by the act. One of the things that need to be done to accomplish that is to determine the agreement based on the procedures outlined in the act and to change the rent rates as per the act.
The act reads that rent needs to be determined according to the act, with the revised agreement as per the act being observed six months after the new act comes into force.
Rent rates of uninhabited islands based on purpose
- Industrial and economic purposes: MVR 3 per square meter per year
- Fisheries and agricultural purposes: MVR 2.50 per square meter per year
- Social purposes: MVR 2 per square meter per year
The purpose of the Leasing Uninhabited Islands and Lagoons Act is to repeal the former act and to put newly strengthened regulations for leasing islands into place.
