Govt Introduces Landmark Bill to Overhaul Lease of Uninhabited Islands and Lagoons; 28-Year-Old Act to be Repealed

In a significant move to modernise the management of the nation’s natural resources, the government has introduced a comprehensive bill to Parliament aimed at repealing the 28-year-old Uninhabited Islands Act. 

The proposed legislation seeks to establish a new legal framework for the lease and utilisation of uninhabited islands and, for the first time, includes the allocation of lagoons for various developmental and social purposes.

The bill was moved on behalf of the government by Saudullah Hilmy, Member of Parliament for Thinadhoo North. Comprising eight detailed chapters, the legislation represents a strategic shift in how the state manages its land and maritime territory, granting the President the central authority to determine the specific use of islands and lagoons across the archipelago.

A primary driver of the bill is the formalisation of leasing uninhabited islands for purposes beyond the traditional scope of tourism. Under the new framework, islands can be specialised for a wide array of sectors, including:

Industrial works

Tourism

Fisheries and Agriculture

Economic activities

Social affairs

State-mandated projects

Special purposes prescribed by other existing laws

While the bill provides broad utility for uninhabited islands, it introduces specific restrictions for lagoons, stipulating that they may only be allocated for agricultural and social purposes.

The administrative process outlined in the bill mandates that the Ministry of Economic Development will serve as the initial authority to designate uninhabited islands for specific uses. Once designated, these lands will be handed over to the relevant sector-specific ministries for management and oversight. Furthermore, the bill proposes to codify the rules governing allocation procedures, lease durations, and the mechanisms for determining rent, providing much-needed clarity for potential investors and developers.

Significantly, the legislation also addresses the role of local governance. It includes specific provisions detailing how local councils are to interact with government-controlled islands and lagoons, particularly those falling within the jurisdiction of inhabited islands. This aims to balance central state authority with the interests of local communities.

If passed, this law will replace the Uninhabited Islands Act that has been in force since 1996. By integrating lagoons into the leasing framework and diversifying the use of uninhabited islands, the government aims to unlock new economic potential and streamline the legal processes that have governed the country’s natural assets for nearly three decades.