Resorts Granted 6 Months Lease Rent Deferral

Thursday 21st of May 2020

Resorts Granted 6 Months Lease Rent Deferral

On 20th May, during President Ibu Sohlih’s address to the country regarding COVID-19 and Government’s plans for easing lockdown, the President announced that the lease rent payable by resorts in Maldives will be deferred for the rest of the year.

The Lease Rent is required to be paid in quarterly installments in advance before the commencement of the quarter for which such payment is due. The Maldives allows tourism leases up to 99 years, with rent calculated based on the land area of the island leased.

If the Lease Rent or any installment or part of it is in amount outstanding, the Lessee shall pay liquidated damages. The damages will be determined at the rate of 0.5% of the amount outstanding in arrears, calculated on a daily basis, for each day of delay. The damages shall be paid in addition to the full payment of all amounts of the Lease Rent in arrears.

The President also remarked that the country could open its borders as early as July. “Guidelines on reopening the country are being formulated with involvement from industry stakeholders,” he said. According to the draft guidelines, only resorts and liveaboard vessels that have a “safe tourism license” will be permitted to open at first.