First Light

Mihaaru reported on 3 September (opens in a new tab) that the government intends to amend the law that governs the leasing of uninhabited islands and islets, and that a period of six months has been set for the revision to be completed.

The report does not name the ministry leading the review, the specific statute to be amended, or the substance of the changes under consideration. Leasing is the principal route by which uninhabited islands and lagoons are allocated in the Maldives, covering resort development, agriculture, aquaculture and industrial use, so the scope of the amendment will decide which sectors are affected and on what terms. Good Morning Maldives (GMM) has not been able to confirm whether the six-month period refers to the drafting of the amendment or to its submission to the People's Majlis.

The Ministry of Economic Development, Tourism and Commerce has deregistered 28 foreign companies that were operating in business sectors reserved for Maldivians, PSM News reported (opens in a new tab). The ministry said the action was taken under authority granted to the Registrar of Companies by law.

The removals follow the foreign investment entry requirements the ministry published this year under the Foreign Investment Act ratified in 2024. The ministry said investors already active in reserved sectors will be given transition periods to exit or restructure their operations, and that some sectors previously closed to foreign capital may now be entered through joint ventures with Maldivian shareholders. Sectors named as opening to that arrangement include wholesale and retail trade, logistics, public transport services, banking services, construction projects valued below USD 15 million, and real estate projects valued below USD 100 million.

The 2024 Act is the first substantial rewrite of the country's foreign investment framework in roughly 45 years, and pairs a more defined entry regime with explicit protection of sectors reserved for Maldivian ownership.

Mihaaru reported on 3 September (opens in a new tab) that MVR 26 billion of the 2026 state budget is allocated to staff compensation and the running costs of government offices, which the report puts at 86 percent of budgeted expenditure.

Spending of this kind is recurrent: it repeats every year regardless of what is built, and it cannot be deferred without reducing headcount or closing offices. A share of that size leaves a comparatively narrow margin for capital projects and for debt service within the same envelope, and it means that revenue shortfalls translate quickly into cash pressure rather than into delayed construction. The report does not break the MVR 26 billion figure into its salary and operating components, and does not state whether the 86 percent share is calculated against total budgeted expenditure or against recurrent expenditure alone.

The Maldives Monetary Authority has begun applying revised requirements intended to strengthen the financial position of licensed payment service providers, PSM News reported (opens in a new tab). Institutions that process transactions must now transfer funds to the recipient's bank account within two business days.

Minimum capital has been raised across licence categories. Electronic money issuance rises from MVR 500,000 to MVR 2 million. Clearing of payment transactions rises from MVR 200,000 to MVR 2 million, and remittance services rise by the same amounts. Payment initiation services and account information services each rise from MVR 100,000 to MVR 1 million.

The authority said the adjustments are meant to ensure licensed institutions hold enough capital to operate reliably and securely, and to support public confidence in the payments system. Minimum capital of this kind functions as a buffer: it is the operator's own money standing behind customer funds in transit, so a larger floor reduces the chance that a provider fails while holding a settlement obligation. The report does not state a compliance deadline for existing licence holders.