President’s tourism advisor Khaleel resigns over forex policy

Mohamed Khaleel, an advisor to President Dr Mohamed Muizzu on tourism sector matters, resigned from his post on Wednesday amid disagreement over the government’s foreign exchange policy for resorts.

Khaleel’s resignation comes as Parliament passed amendments to the Foreign Exchange Act requiring resorts to convert 40% of their foreign currency revenue through local banks.

A source told Dhauru that Khaleel submitted his resignation on Wednesday over concerns about the changes to foreign currency conversion requirements for the tourism industry.

Chief Government Spokesperson Mohamed Hussain Shareef confirmed Khaleel’s resignation on Wednesday night but did not provide further details.

Khaleel is a shareholder in Pulse Hotels & Resorts, which operates resorts in the Maldives, and Manta Air.

The government initially submitted amendments to the Foreign Exchange Act earlier this month to remove the existing option allowing resorts to exchange USD 500 per tourist.

Under the proposal submitted to Parliament, resorts would instead have been required to convert 20% of their foreign currency revenue through banks.

The bill was initially approved at the committee stage on that basis.

The government later moved to increase the conversion requirement to 40% of resort foreign currency revenue. Parliament passed the amended legislation on Wednesday.

The changes will take effect once the bill is ratified by the President and comes into force.

The policy has drawn objections from tourism industry organisations and opposition parties, which have raised concerns over its effect on resort operations, foreign currency obligations and investment.

Khaleel’s resignation comes as the tourism industry continues to call for changes to the foreign exchange framework.