The cabinet withdrew 39 islands selected for resort development from the list of 64 on Tuesday, according to Haveeru.
Although the 39 islands had been leased out for resorts, no construction work had yet been carried out.
Tourism Minister Dr Ahmed Ali Sawad said the government had decided to give additional time to resorts where construction was underway but had not reached a decision on islands where construction had not yet begun.
Sawad said the government was authorised to take action against lessees if they did not adhere to their contracts even if an advance payment had been paid.
He added the government’s intention was to ensure that the leased islands were developed as tourist resorts.
“We have to take all the necessary steps to ensure that the development of the resorts proceeds,” Sawad said. “We also have to see which parties have the financial means to do it. They have to be given the opportunity.”