AGP Executive Report

Fuel & Cost Pressures: Sri Lanka’s fuel prices rose by Tk20 per litre (diesel to Tk135, petrol to Tk160, octane to Tk165, kerosene to Tk155), a move that could ripple into transport and food costs. Maldives Economy: Maldives real GDP contracted 12.3% in Q2 2026, driven mainly by a sharp drop in accommodation and food services as tourist bed-nights fell. Tourism Market Shift: Visit Maldives says it’s moving beyond honeymoon-only demand, pushing family, adventure, culture and cuisine as it rebuilds momentum in the Middle East after disruption. Agriculture Enforcement: Thoddoo crackdown detained 107 irregular immigrants after complaints that foreigners increasingly control farm operations, with a new farm allocation agreement drafted. Plastic Policy Update: Maldives extended single-use plastic straw and bottle restrictions to 2031/2030 under Presidential Decree 15/2026, while banning pre-packaged beverages in bottles under 250ml immediately. Energy & Industry: Atoll Solar joins Hotelier Maldives GM Forum 2026 as a Silver Sponsor, highlighting renewable energy solutions for resorts. Banking & FX: Bank of Maldives expects USD transfer delays to ease by end of next week, while stressing government SBI repayment didn’t use BML customer or bank funds.

Energy & Utilities: Ex-deputy minister Ahmed Nizam has been appointed to the STELCO board, bringing experience spanning defence coast guard diving and years in construction, resort development and project management. Macroeconomy: Maldives GDP contracted 12.3% in Q2 2026, driven mainly by a sharp slowdown in accommodation and food services as tourist bed-nights fell. Tourism Outlook: Visit Maldives says it’s moving beyond the honeymoon market, pushing family, adventure, culture and experience-led travel after Middle East disruption. New Openings: Nammos Resort AMAALA welcomed its first guests in Saudi Arabia with 110 rooms and a full resort setup; Maldives resorts also rolled out new experiences and upgrades, including Gili Lankanfushi’s enhanced lagoon retreat with private island access. Food & Hospitality Ops: INEO highlights how island resorts can build full bakery kitchen workflows, not just buy ovens. Agriculture Enforcement: Thoddoo crackdown detained 107 irregular immigrants as foreigners increasingly control farm operations, with the council drafting tighter farm allocation rules. Plastic Policy: Muizzu extended single-use plastic straw and bottle restrictions to later deadlines, while banning pre-packaged beverages in plastic bottles under 250ml immediately. Banking & FX: BML expects dollar transfer delays to ease by end of next week and says the final $50m SBI repayment used no customer or bank funds. Tourism Risk: Sri Lanka, Maldives and Seychelles face new turbulence as Middle East airspace closures disrupt flights and raise travel costs.

Immigration Crackdown: Maldives Immigration detained 107 irregular immigrants in Thoddoo after searching 507 foreigners in a special operation, citing rising illegal work in the island’s agriculture-heavy labour market. Food Safety & Consumer Impact: India’s food regulator has taken action against Nestlé baby food after samples were found “substandard” on biotin levels, with additional cases over alleged misleading infant nutrition claims—an issue closely watched in the Maldives where such products are widely used. Plastic Policy Shift: President Muizzu amended single-use plastics rules, deferring the straw import ban to 2031 and extending other plastic bottle restrictions; pre-packaged beverages in bottles under 250ml are now prohibited immediately. Banking & FX Flows: Bank of Maldives says dollar transfer delays should ease by end of next week as it manages higher demand; it also clarified that the government’s final $50m SBI repayment did not use BML customer or bank funds. Tourism Trade & Connectivity: Visit Maldives wrapped up ATM 2026 with new airline MoUs with Emirates and Qatar Airways, aiming to boost GCC reach and improve air connectivity. Trade Finance Boost: ITFC and the Maldives signed a five-year framework to mobilise up to $1.5bn for trade financing from 2026–2031.

Single-Use Plastics Policy: Maldives President Dr Mohamed Muizzu has deferred key single-use plastic restrictions, pushing the straw import ban to 1 June 2031 and production/sales to 19 December 2031, while tightening beverage bottle rules by setting a 250ml threshold for pre-packaged drinks (excluding water) from immediate effect. Tourism & Hospitality Careers: Sirru Fen Fushi promoted Muaz Abdulla to Resort Manager, effective 10 September 2026, expanding oversight after his HR leadership during the resort’s rebranding and restructuring. GCC Tourism Push: Visit Maldives Corporation wrapped up ATM 2026 with new airline MoUs, including Emirates and Qatar Airways, aiming to boost connectivity and GCC demand. Travel Trade Compliance Watch: MATATO launched a survey on the TGST impact on overseas sellers ahead of new rules, while a parliamentary motion seeks to delay a 17% GST tax on foreign travel agents. Energy & Finance Links: Maldives and the UK reaffirmed strategic cooperation, including a tuna tariff suspension for 2026–2028, and Maldives also signed an ITFC framework to mobilise up to $1.5bn for trade financing (2026–2031).

Maldives-Malaysia Economic Links: President Muizzu thanked Malaysia for considering a US$100m currency swap and welcomed talks toward a Preferential Trade Agreement, following PM Anwar Ibrahim’s visit—aimed at boosting trade and business ties. UK-Maldives Strategic Partnership: The UK and Maldives reaffirmed cooperation on Indian Ocean security, policing and maritime defence, plus governance and human rights; the UK also extended tariff suspension on Maldivian tuna (May 20, 2026–Dec 31, 2028) and discussed fisheries, tourism, renewables and finance. Tourism Tax Pushback: UK travel trade groups warned the Maldives’ expanded Tourism GST from Oct 1 could hurt overseas sellers via added compliance and pricing pressure, urging more consultation. Industry Financing for Trade: ITFC and the Maldives signed a five-year framework to mobilise up to $1.5bn for trade financing (2026–2031), including support for SMEs and strategic commodity imports. Ports & Logistics: MPL opened an EOI for a project management consultant for the Thilafushi multi-purpose port to ease Malé congestion and expand trade capacity. Green Growth: Government-backed nurseries will be set up on 10 more islands under the Five Million Trees programme; total plantings reached 1.83m. Tourism Connectivity: Visit Maldives signed MoUs with Emirates and Qatar Airways at ATM 2026 to strengthen GCC reach and air connectivity. Resort & Wellness Updates: Four Seasons launched Urja Naturopathy Island at Kuda Huraa, while multiple resorts rolled out festive dining and wellness programming.

Tourism & Air Connectivity: Visit Maldives Corporation (VMC) is pushing deeper into the Gulf after ATM 2026, signing MoUs with Emirates and Qatar Airways to boost destination marketing, trade engagement and familiarisation, while also targeting younger, experience-led GCC travellers. Industry Finance: The International Islamic Trade Finance Corporation (ITFC) and the Maldives Government signed a five-year framework agreement to mobilise up to $1.5b for trade financing (2026–2031), including support for SMEs and strategic commodity imports. Ports & Trade: Maldives Ports Limited (MPL) opened an EOI for a project management consultant for the Thilafushi multi-purpose port, aimed at easing congestion at Malé Commercial Harbour and supporting Greater Malé trade. Environment & Agriculture: The Five Million Trees Programme continues to scale up, with nurseries funded for 10 more island councils and total plantings reaching 1.83m trees so far. Tax & Tourism Sales: MATATO launched a survey to measure impacts of new GST rules on overseas sellers of Maldives tourism products, while a parliamentary motion seeks to delay the 17% tax on foreign travel agents. Electricity Costs: Malaysia’s electricity-bill concerns saw a “good news” hint after a special meeting, as authorities discussed immediate mitigation steps. Maritime Security Cooperation: South Asian countries, including Maldives, backed stronger coordinated action against illegal wildlife trade through intelligence sharing, financial investigations and prosecution.

GST Pressure on Tourism Sales: MATATO has launched a “TGST Destination Principal Impact Survey” to gauge how the new 17% GST on foreign travel agents will hit pricing, bookings, margins and competitiveness. Tax Delay Move: A Parliament motion seeks to delay the GST amendment, warning it could raise resort prices and hurt a tourism year already under strain. Electricity Bills Relief Talk: Malaysia’s PM Anwar Ibrahim hinted “good news” after a special meeting on higher electricity bills, with targeted protection for households using up to 600 kWh. Parallel USD Crackdown: Maldives Homeland Security and Technology Minister Ali Ihusaan says authorities are intensifying action against unlicensed parallel US dollar trading that can distort unofficial exchange rates. Port & Trade Infrastructure: MPL opened an EOI for a project management consultant for the Thilafushi multi-purpose port, aimed at easing Malé congestion and boosting regional trade. Greening the Islands: Government support is funding nurseries on 10 more islands under the Five Million Trees Programme, with 1.83 million trees planted so far. Tourism Connectivity Boost: Maldivian and Etihad signed a loyalty partnership letting Etihad Guest members redeem miles on Maldivian’s domestic network. Regional Wildlife Enforcement: Maldives joined South Asian pledges to step up coordinated action against illegal wildlife trade, including intelligence and financial investigations.

Electricity Bills Relief Talks: Malaysia’s Anwar Ibrahim says a special meeting with PETRA, the Energy Commission, TNB and the Finance Ministry will review immediate steps after complaints over higher electricity bills; about 80% of domestic users under 600 kWh remain protected, while households above the threshold face automatic fuel cost adjustments. Parallel USD Market Crackdown: Maldives Homeland Security and Technology Minister Ali Ihusaan warns authorities will enforce rules against unlicensed US dollar trading, alleging coordinated manipulation of unofficial exchange rates involving links to tourism and construction. Energy Cooperation: President Muizzu meets World Bank South Asia VP Johannes Zutt to discuss expanding renewable energy to cut fuel import spending. Maritime Security: Maldives signs the Saudi-led Multinational Maritime Defense Alliance charter to safeguard key sea lanes around Bab el-Mandeb, Red Sea and Gulf of Aden. Tourism Sustainability: Kuda Villingili Maldives celebrates its third consecutive Green Globe Certification, highlighting solar, composting and plastic reduction. Resort Refreshes & Festive Line-ups: Constance Halaveli unveils resort-wide refresh; multiple resorts roll out 2026–27 festive programmes. Logistics Leadership: Blue Dart appoints R.S. Subramanian as Managing Director from 30 Nov 2026. Esports in the Maldives: Dhiraagu Maldives Gaming Conquest 2026 PUBG Mobile qualifiers kick off 20 Sept with 57 teams. Renewed Trade Push via FHAM: Sri Lanka’s giftware and lifestyle SMEs take part in Food and Hospitality Asia Maldives 2026, targeting Maldivian hospitality buyers.

Maritime Security: Maldives has joined a Saudi-led multinational maritime defense alliance to safeguard freedom of navigation through the Bab el-Mandeb Strait, Red Sea and Gulf of Aden, with the charter signed by the Maldives Chief of Defence Force. Foreign Affairs: President Muizzu strongly condemned an attempted Houthi drone attack targeting Makkah, reaffirming Maldives solidarity with Saudi Arabia. Energy & Cost of Living: Maldives and the World Bank discussed expanding renewable energy to cut fuel-import spending, while Malaysia announced a special meeting to mitigate higher electricity bills for households affected by subsidy targeting. Trade & Logistics: Blue Dart appointed R.S. Subramanian as Managing Director from Nov 30, as Maldives Customs reiterated it bears no responsibility for last week’s Sinamale’ Bridge tanker incident. Tourism & Partnerships: Malaysia highlighted growing Maldivian arrivals and more tourism options beyond Kuala Lumpur, while Visit Maldives partnered with Qatar Airways and Emirates for destination promotion ahead of ATM activity. Tourism Industry Pressure: European tour operators urged Maldives to delay a GST amendment taxing foreign travel agents, citing short lead time and operational gaps. Business & Infrastructure: Parliament approved Maldives membership in the maritime alliance; separate coverage also points to ongoing regional shipping and route-security concerns.

Energy & Finance: The Maldives and the World Bank discussed expanding renewable energy to cut fuel-import costs, as President Muizzu pushes digitalisation and energy-sector strengthening. Maritime Safety & Accountability: Maldives Customs says it bears no responsibility for last week’s Sinamale’ Bridge tanker crash, calling it a “natural disaster” amid rough seas; the vessels had entered illegally earlier this year. Tourism Partnerships: Visit Maldives Corporation signed MoUs with Qatar Airways and Emirates to boost destination promotion and trade engagement, timed with increased airline capacity. Bilateral Trade Talks: Muizzu and Malaysia’s Anwar agreed to start negotiations on a Preferential Trade Agreement, with focus on renewable energy, digital infrastructure, construction and Islamic finance. Tourism Numbers: Maldives arrivals reached 1.52 million so far in 2026, led by China and Russia, with a slight year-on-year dip but signs of recovery. GST Pressure on Travel Agents: European tour operators urged the Maldives to delay a new GST amendment taxing foreign travel agents, citing short lead times and compliance gaps. Resort Upgrades & Marine Tourism: Gili Lankanfushi unveiled an enhanced lagoon retreat with private island access, while manta-ray experiences and resort marine conservation programmes continue to draw visitors.

Maldives–Malaysia diplomacy with industry focus: Prime Minister Anwar Ibrahim’s two-day official visit to Malé delivered fresh momentum for trade, tourism and skills, with Malaysia and the Maldives agreeing to start negotiations on a Preferential Trade Agreement and proposing a joint commission meeting in Kuala Lumpur before year-end. Defense & Islamic cooperation: The leaders witnessed MoUs on defence cooperation (including maritime security, training and defence industry links) and on Islamic affairs (halal, waqf, haj and religious education). Tourism numbers: The Maldives recorded 1.52 million tourist arrivals so far in 2026, with China and Russia leading source markets, while recovery is linked to easing travel disruptions. Tourism marketing partnerships: Visit Maldives Corporation signed MoUs with Qatar Airways and Emirates to expand destination promotion across key markets as airlines increase capacity. Hospitality talent: Dusit D2 Feydhoo Maldives chef Muslima Adam won Best Chef at the Food and Hospitality Asia Maldives 2026 Culinary Challenge, highlighting rising local capability. Tourism tax friction: European tour operators urged the Maldives to delay a new GST amendment that taxes foreign travel agents, warning of short lead times for winter bookings.

Malaysia-Maldives ties deepen: PM Anwar Ibrahim wrapped up his two-day Maldives visit, praising Muizzu’s hospitality and agreeing to push cooperation further. Defense & Islamic cooperation: The two sides exchanged MoUs to expand maritime security and training, plus halal, waqf and haj cooperation. Joint Commission push: Anwar proposed a Maldives-Malaysia Joint Commission in Kuala Lumpur before year-end, also to tackle issues for Maldivians studying and seeking healthcare in Malaysia. Finance & trade momentum: Malaysia agreed in principle to extend a USD 100m facility via its central bank, while both countries moved toward negotiations on a Preferential Trade Agreement and a broader trade deal. Energy exploration: Malaysia said it will discuss Petronas support for surveys into potential oil and mineral resources in Maldivian waters. Tourism snapshot: Maldives recorded 1.52m arrivals so far in 2026, with China and Russia leading source markets. Tourism industry at ATM: Visit Maldives Corporation leads a 165-strong delegation to Arabian Travel Market 2026 in Dubai. Maritime business: Maldives’ new bunkering service has generated USD 80m so far, with plans for larger port and expanded maritime services.

Diplomatic Visit: Malaysia’s PM Anwar Ibrahim arrived in the Maldives for a two-day official visit, welcomed by President Muizzu at Velana International Airport, with talks expected to cover bilateral progress and MoUs on defence cooperation and Islamic affairs. Tourism & Trade: Visit Maldives Corporation leads a large Maldives contingent at Arabian Travel Market 2026 in Dubai, pushing experiences beyond the one-island-one-resort model, including diving, wellness and Muslim-friendly tourism. Foreign Exchange & Industry: Economic Minister Mohamed Saeed said US dollar rates are falling after crackdowns on illegal currency trading, citing enforcement against networks processing about USD 76m. Maritime & Infrastructure: Male’ City Council demanded compensation and clearer public information after tanker collision damage at Sinamale’ Bridge, while officials said the vessels entered illegally. Hospitality Awards: Dusit D2 Feydhoo Maldives chef Muslima Adam won Best Chef at FHAM 2026, with the resort also taking Most Outstanding Organization. Islamic Finance: Bank of Maldives moved all new personal accounts and financing applications to Islamic banking processing under its “Islamic Finance First” strategy. Construction Safety: A 25-year-old worker was injured after a fall from a building under development on Fuggiri island.

Maritime & Trade: Maldives’ new bunkering service has generated USD 80M in revenue so far, with plans for a specialised large-scale port in Ihavandhippolhu and expanded ship-to-ship, crew change, maintenance and supply services. Tourism & Hospitality: Ocean Group Maldives is running PADI AWARE Week across nine resorts (12–20 Sept), while multiple resorts roll out anniversary and festive programming, including Banyan Tree Vabbinfaru’s “Original Maldives” experiences and Meyyafushi’s island-wide celebrations. Finance & Banking: Bank of Maldives moves new personal accounts and financing fully under Islamic banking, and also sets a USD 16M monthly cap on overseas rufiyaa card e-commerce to protect dollar reserves. Governance & Infrastructure: After the Sinamale’ Bridge tanker collision, the Malé City Council is pushing for compensation and structural safety clarity, as political parties call for faster, deeper review. Real Estate/Development: A new state-owned company, Maldives Awqaf Investments Limited, is launched to fund waqf properties and mosque construction and maintenance. Aviation: Qatar Airways will add flights to the Maldives—three daily services from late October.

Mosque & Waqf Investment: President Muizzu launched construction of the Sultan Mohamed Bin Abdullah Grand Mosque and Islamic Civilization Center in Hulhumalé Phase II, to be fully funded by Saudi Arabia’s Al Rajhi Company and designed for up to 10,000 worshippers, with an Islamic library, Quran museum, and community facilities. Islamic Education Push: The Islamic Affairs Minister said the Maldives now has 322 Hafiz and aims to reach 500 in two years, alongside expanding Quran education centres nationwide. Bridge Safety & Accountability: After two tankers collided with Sinamale’ Bridge, the Malé City Council and opposition MDP are calling for compensation, clearer public information, and a review by the 241 Committee over inspection speed and how the vessels were handled. Islamic Banking Shift: Bank of Maldives moved all new personal accounts and personal financing applications to Islamic banking principles, with transition mechanisms for existing customers. E-commerce FX Controls: BML set a USD 16m monthly cap on overseas rufiyaa-card e-commerce to protect dollar reserves, with daily and category limits. Finance Leadership: FinExcel appointed Selim Barkat as chairman. Aviation Connectivity: Qatar Airways will raise Maldives flights to three daily services from late October, and GullivAir plans direct Malé–Sofia flights from 6 November. Tourism Recognition: Siyam World Maldives was named Most Innovative Resort for a third straight year at the TTM Awards.

State-Owned Enterprise for Waqf: President Muizzu has set up Maldives Awqaf Investments Limited to fund religious activities, manage waqf/endowment properties, and build, repair and upgrade mosques, with the company mandated to run Sharia-compliant commercial activities. Bridge Accountability: Opposition MDP is pushing Parliament’s 241 Committee to review the Sinamale’ Bridge tanker collision, questioning fast inspections and asking why seized vessels were left in distress for months. Central Bank Controls: Bank of Maldives (BML) introduced a USD 16m monthly cap on overseas rufiyaa-card e-commerce to ease dollar outflows and protect foreign-currency reserves. Aviation Boost for Tourism: Qatar Airways will raise Maldives service to three daily flights from late October (21 weekly), while GullivAir plans direct Malé–Sofia flights from 6 November. Tourism Talent & Operations: Gili Lankanfushi made multiple internal leadership moves, including promotions in engineering and HR, plus new front office and Japanese restaurant appointments. Regional Cooperation: South Asian countries, including Maldives, pledged coordinated action against wildlife crime through SAWEN.