Mandating resorts to convert 40 percent of their dollar earnings will permanently drive resort businesses into bankruptcy and negatively impact all related industries, stated opposition MDP Chairman and former President Mohamed Nasheed on Saturday.

On Wednesday, Parliament approved a bill mandating that 40 percent of resort income must be transformed. The amendment bill to the Foreign Exchange Act, introduced by PNC MP Abdul Sattar Mohamed for the government, originally mandated that resorts withhold USD 500 per tourist and convert 20 percent of their earnings.

Once the committee finished its assessment and sent the bill to Parliament, it was returned for additional modifications.

In this context, Nasheed posted on X that resort enterprises may face bankruptcy if they are compelled to exchange 40 percent of their foreign currency profits into Maldivian rufiyaa.

He composed:

"Success arises from utilizing our natural resources, as it involves both the entrepreneur and the laborer." The riches attained by the entrepreneur stem from his efforts, and that wealth is linked to the well-being of all individuals nationwide.

Nasheed stated that the collapse of resort companies would result in significant job losses for resort staff and greatly affect all businesses associated with the tourism industry.

In a prior post, he mentioned that compelling resorts to allocate 40 percent of their earnings poses a significant risk to investor trust and the lasting stability of the tourism sector.

During a press conference on Monday, MMA Governor Ahmed Munawar announced his intention to suggest a change to the Foreign Exchange Act mandating resorts to place 40 percent of their dollar earnings in Maldivian banks. Parliament subsequently modified the Act to require the 40 percent conversion.