Tourism businesses required to exchange 40% of monthly sales as President ratifies Foreign Currency Act amendment

President Dr Mohamed Muizzu has ratified the first amendment to the Foreign Currency Act, introducing a requirement for Category A tourism establishments to convert 40 percent of their monthly gross sales into Maldivian rufiyaa through a bank.

The amendment removes the previous option available to Category A tourism establishments to convert USD 500 per tourist instead of a percentage of their sales.

Category B tourism establishments will be required to convert either USD 25 per tourist arrival or 20 percent of their monthly gross sales.

President Muizzu ratified the amendment at a special ceremony held at the President’s Office today. The bill was passed by the 20th People’s Majlis during the 28th sitting of its second session of 2026 on Wednesday, 26 August.

The amendment also revises foreign currency conversion requirements for businesses outside the tourism sector. The annual foreign currency income threshold for such businesses has been raised from USD 15 million to USD 25 million.

Businesses earning more than USD 25 million annually in foreign currency will be required to convert 40 percent of their monthly gross sales through a bank. However, businesses that are fully Maldivian-owned will be required to convert seven percent of their monthly gross sales.

Amounts subject to the conversion requirement must be deposited into a foreign currency account maintained with a bank licensed by the Maldives Monetary Authority (MMA) and converted through the bank by the 28th day of the following month.

Under the amendment, foreign currency may only be bought and sold at rates, or within exchange-rate bands, determined by the MMA. Foreign currency exchange businesses will also be required to operate under a licence issued by the Authority.

Selling, attempting to sell, or advertising foreign currency at a rate above the rate or band set by the MMA will become a criminal offence.

Penalties range from MVR 25,000 to MVR 1 million for individuals and from MVR 100,000 to MVR 5 million for legal entities.

The amendment will come into force on 1 September 2026.