An amendment has been proposed to reduce the payment period for lease extensions of islands, lagoons and lands leased for resort development from two years to six months.
The amendment to the Tourism Act, proposed by Dhangethi MP Abdulla Rasheed on behalf of the government, only changes the provisions related to extending the lease period.
Under the existing law, if the leaseholder agrees to pay within two years from the date mentioned in the law (December 27, 2020), a fee of USD 100,000 per year has to be paid for each additional year.
If the payment is after two years, USD 200,000 has to be paid for each additional year.
The government is proposing to change the law so that a fee of USD 100,000 per year has to be paid for each additional year if paid within six months from the date the amendment comes into effect.
If the payment is after six months, USD 200,000 has to be paid for each additional year.
The new amendment also removes the provision that lease extensions can be offered only for properties leased before September 8, 2010 (the date of the second amendment to the Tourism Act).
The government did not give the exact reason for the changes to the tourism law, but it is believed to encourage tourist investors to pay quickly.
