Maldives Parliament has approved a bill proposing changes to the rules governing the conversion of foreign currency earnings into Maldivian rufiyaa, with the legislation now moving to the Public Accounts Committee for detailed review.

The bill received unanimous support from all 57 lawmakers who participated in the vote.

It was submitted by Holhudhoo MP Abdulsattar Mohamed on behalf of the government.

The proposed amendments would revise the criteria determining which businesses and individuals must deposit foreign currency earnings into bank accounts and which are required to convert those earnings into Maldivian Rufiyaa.

The legislation also seeks to strengthen conversion requirements for Category-A establishments.

One key change would raise the threshold for mandatory foreign currency deposits.

Under the current law, entities receiving USD 15 million in foreign currency income are subject to the requirement.

The proposed amendment would raise the threshold to USD 25 million and apply it to tourism-sector suppliers and other businesses earning at least that amount from goods and services during the previous calendar year.

The bill would also reduce the conversion burden for businesses that are fully owned by Maldivians, excluding tourism companies and financial institutions.

For Category-A tourism establishments, the existing requirement is based on either USD 500 for every tourist arriving during a month or 20 percent of total income, depending on the applicable calculation.

Under the proposed changes, these establishments would instead be required to convert 20 percent of their total foreign currency income received during each month into Maldivian rufiyaa.

The bill will now undergo further examination by the Public Accounts Committee before returning to Parliament for consideration at subsequent stages.