Muizzu ratifies law giving president authority over uninhabited islands and lagoons

President Mohamed Muizzu on Monday ratified legislation establishing a new framework for the allocation and leasing of uninhabited islands and lagoons, with the President retaining authority to determine how such assets are allocated.

The government-sponsored bill was passed by Parliament last Wednesday and signed into law by Muizzu during a ceremony at the President’s Office on Monday.

The law will take effect on 1 October.

Under the legislation, the President has the authority to allocate uninhabited islands and lagoons for tourism, industrial development, fisheries, agriculture, social purposes, state requirements and other economic activities.

The President will also determine the purpose for which an island or lagoon is allocated and designate the government agency responsible for administering it.

The law further allows the President to revoke or reassign uninhabited islands and lagoons for other state purposes.

Uninhabited islands may initially be leased for 21 years. The ministry, government agency or local council responsible for the asset may extend the lease period up to a maximum of 50 years.

The legislation also establishes annual lease rates based on the purpose for which an island or lagoon is allocated.

Uninhabited islands leased for industrial and other economic activities will carry an annual rent of MVR 3 per square metre, while islands allocated for fisheries and agriculture will be charged MVR 2.50 per square metre.

The annual lease rate for islands allocated for social purposes is set at MVR 2 per square metre.

For lagoons leased for fisheries and aquaculture activities, the annual rate is MVR 0.50 per square metre.

The law also introduces reporting requirements for the administration of leased islands. Records and schedules relating to uninhabited islands under lease must be shared with the Anti-Corruption Commission (ACC) and the Auditor General’s Office.

The legislation replaces the framework governing uninhabited islands that had been in place since 1998.

Under the previous law, the President also held final authority to determine the designation of uninhabited islands for economic purposes.