- The Ministry of Tourism and Civil Aviation revised Lease Acquisition Cost calculations for six designated atolls under the cross-subsidisation framework established by Regulation R-125/2022.
- The adjusted concession rates apply to Haa Alif, Haa Dhaalu, Shaviyani, Thaa, Laamu, and Addu Atolls, amending a prior 29 June 2025 announcement.
- Concessions remain effective for two years, retroactively dated from 29 June 2025 to 29 July 2027, with the revised formula published in the Gazette.
The Ministry of Tourism and Civil Aviation has issued a key policy amendment adjusting the calculation of Lease Acquisition Costs (LAC) for tourism development across six designated atolls under the country’s cross-subsidisation framework.
According to the official announcement published in the Gazette on 18 October 2026, officials have revised the original valuation formula established under Regulation R-125/2022 (“Regulation on Leasing Islands, Lands, and Lagoons under Cross-Subsidization for Tourism Purposes”).
The directive amends a prior announcement issued on 29 June 2025. The new regulations adjust the financial baseline for developers seeking to acquire islands, land plots, and lagoons for resort and tourism projects in the following regions:
- North Thiladhunmathi (Haa Alif Atoll)
- South Thiladhunmathi (Haa Dhaalu Atoll)
- North Miladhunmadulu (Shaviyani Atoll)
- Kolhumadulu (Thaa Atoll)
- Hahdhunmathi (Laamu Atoll)
- Addu Atoll
Ministry officials confirmed that the revised concession rates apply exclusively to islands and sites within these specific northern and southern administrative divisions.
Under the terms specified in the official decree, these adjusted concessions will remain in effect for a two-year period, retroactively dated to the original publication on 29 June 2025 through to 29 July 2027.
The cross-subsidisation model allows private developers to secure tourism leases at reduced rates or altered fee structures in exchange for financing critical infrastructure projects, such as regional airports and municipal utilities, in outlying areas.
The government has published the revised calculation formula as an official attachment to the Gazette notice for public review.
