Category A tourism establishments in the Maldives are now required to convert 40 percent of their monthly gross sales in foreign currency through the domestic banking system under the revised foreign currency framework, introducing a standardised conversion requirement for the country’s resort sector.
The requirement applies to Category A tourism establishments, including tourist resorts, integrated tourist resorts, private islands, resort hotels and other similar establishments. The revised framework replaces the previous arrangement under which Category A establishments had the option of converting either USD 500 per tourist arrival or 20 percent of monthly gross sales received in foreign currency. The USD 500 per-tourist option has now been removed, with the conversion requirement set at 40 percent of monthly gross sales.
The change is particularly significant for the Maldives’ resort industry, which remains the country’s principal source of foreign currency earnings and a central pillar of the national economy. Resorts generate foreign currency through accommodation, dining, transfers, excursions, recreation and other services provided to international travellers, while their operations support employment and a wide network of domestic suppliers, transport providers, contractors and service businesses.
Under the revised framework, amounts subject to mandatory conversion must be deposited into a foreign currency account maintained with a bank licensed by the Maldives Monetary Authority and converted through the banking system by the 28th day of the following month. Foreign currency income generated during September 2026 will therefore be subject to the first conversion deadline on 28 October 2026.
The monthly timetable is intended to ensure that foreign currency generated by major economic sectors enters the regulated domestic banking system more regularly. With resorts accounting for a substantial share of the Maldives’ foreign exchange earnings, the revised system places the tourism industry at the centre of the country’s broader foreign currency management framework.
The amendment to the Foreign Currency Act was ratified by President Dr Mohamed Muizzu on 31 August 2026 and came into force on 1 September 2026. The legislation also introduced wider changes governing foreign currency transactions and conversion requirements for other categories of businesses.
For resort operators, the new requirement makes monthly revenue reconciliation and foreign currency management increasingly important, as establishments will need to complete the prescribed conversion within the following month. The framework provides a uniform basis for Category A establishments while strengthening the formal circulation of foreign currency through licensed banks as the Maldives continues efforts to reinforce its foreign exchange system and support broader economic stability.
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