Wednesday
19th Aug 2026
Dhivehi Edition
The Maldives Parliament has passed amendments to the Foreign Currency Act aimed at revising the criteria for businesses required to deposit and convert foreign currency earnings, while also easing requirements for certain businesses wholly owned by Maldivians.
The bill was passed with the support of 58 members.
The amendment was submitted on behalf of the government by Holhudhoo MP Abdul Sattar Mohamed. Following its review, the Parliament’s Finance Committee recommended that the bill be passed in its original form without any additional amendments.
The amendments primarily revise the thresholds used to determine which businesses are required to deposit foreign currency earnings into bank accounts and convert a portion of those earnings. They also strengthen the foreign currency conversion framework for Category A establishments and introduce concessions for certain businesses that are 100 percent Maldivian-owned.
Under the amendments, in addition to businesses providing goods and services in the tourism sector, businesses that earned at least USD 25 million, or its equivalent, during the previous calendar year will be required to deposit their foreign currency income into a bank account. The previous threshold was USD 15 million.
The foreign currency must be deposited into an account held with a bank licensed by the Maldives Monetary Authority (MMA), with the relevant information also required to be shared with the central bank.
The existing Foreign Currency Act requires businesses earning foreign currency to comply with deposit and conversion obligations based on their category and level of foreign currency earnings. Under the current framework, Category A establishments are required to convert either USD 500 per tourist per month or 20 percent of their gross monthly sales, while businesses meeting the previous USD 15 million threshold are also subject to conversion requirements.
Under the newly passed amendments, Category A tourism establishments will be required to convert 20 percent of their total monthly foreign currency income into Maldivian Rufiyaa. Previously, these establishments could meet their conversion requirement by converting either USD 500 per tourist or 20 percent of their gross monthly income.
The amendments also provide relief to eligible businesses that are 100 percent owned by Maldivians, excluding tourism businesses and financial institutions. Such businesses will be required to convert 7 percent of their total monthly foreign currency income.
The Maldives Monetary Authority will be required to establish a transitional period for the implementation of the amendments through regulations. The bill also requires relevant regulations and procedures made under the law to be amended within 30 days of the amendments coming into force.