Former President Nasheed said the government must repay a US$50 million bond owed to the Indian government by the end of Wednesday. He warned that the central bank's usable reserves will fall sharply from Thursday and that the government will not have enough foreign currency to pay for staples, fuel and medical supplies. He said most Maldivian sovereign bonds carry cross-default clauses, so a default to one official creditor could trigger demands for early repayment from private creditors including holders of the international bonds and sukuk. He set out a timeline in which SBI marks the treasury bill overdue and MMA reports it, a 14 to 30 day grace period follows, and rating agencies place the Maldives on negative watch before downgrading to restricted default.
Foreign tour operators warned they will stop selling the Maldives over the new GST on inbound tourism services, Dhauru reported. About 800 joined an online session held by the tourism ministry, the finance ministry and MIRA on Tuesday, where the comments turned hostile. One wrote that the tax would "sink the Maldives before the rising sea levels do" and that the company would remove the country from a lineup it had offered for 30 years, taking clients to destinations that are "less complicated and less expensive". Another said she could not support a tax on services provided outside the Maldives, that the margin is already taxed in her own country, and that she would no longer sell the destination. Others said the ground supplier already pays tax that is passed to the guest, and that the margin between what a client pays and what the resort charges is not the Maldivian government's concern. One listed discounts, rebates, hotel overrides, volume bonuses, cancellation fees, chargebacks and sub-agent commissions as complications the rules do not address. The amendment, passed on 23 August, applies the 17 per cent tourism rate from 1 October regardless of where the supplier is based.
Nasheed said European tour operators and businesses have been contacting him to raise concerns about additional taxes under the new destination principle rules. The MDP chairperson said the companies are struggling to meet the additional tax obligations to MIRA, noting that they already pay 20 percent tax in Europe, pay T-GST through local companies in the Maldives and have loan obligations to meet. He warned that this is the beginning of "Maldives going bankrupt."
Fisheries Minister Ahmed Shiyam, Sports Minister Abdulla Rafiu, Economic Minister Mohamed Saeed, Chief Government Spokesperson Mohamed Hussain Shareef, Baarah MP Ibrahim Shujau and Nilandhoo MP Fathimath Saudha were elected to the six vice president positions of PNC at the ruling party’s ongoing congress. Members were also elected to the women and youth positions allocated in the party senate.
Mohamed Afeef, a former Dhivehi teacher, died after two weeks in critical condition following a motorcycle accident in Hulhumalé. Afeef, 62, was riding the motorcycle with his 24-year-old son when it collided with a car at a junction in Phase 2. He was undergoing treatment at Tree Top Hospital.
Mohamed Khaleel, CEO of Manta Air and Managing Director of Pulse Hotels and Resorts, told Mira Business FM that he resigned as tourism advisor because President Muizzu rejected his advice on requiring resorts to convert 40 per cent of their dollar earnings, which he described as “practically impossible.” Khaleel said he had advised the president to retain the rate at 20 per cent, despite considering that level too high for most resorts, whose average daily rates are below US$1,000. Khaleel also said his company’s board had decided never to invest in the Maldives again, saying that the passage and enactment of laws within periods as short as 24 hours undermines confidence among investors.
Sealine-3, a supply boat carrying timber from Malé to a Raa Atoll resort, began taking on water while travelling through the Kaashidhoo Channel after the straps securing the cargo broke, causing the vessel to tilt to one side. Police said a vessel from the nearest station in Baa Eydhafushi assisted in draining the water after dumping some of the cargo to the sea. The boat was subsequently taken to Eydhafushi with its four crew members, all of whom were unharmed.
The new symbol for the Maldivian rufiyaa was added to Unicode Standard Version 18.0, released by the Unicode Consortium on Wednesday. The Maldives Monetary Authority said the inclusion will standardise the use of the rufiyaa symbol across websites, mobile applications and other digital platforms. The application to include the symbol was submitted in March last year by Naail Abdul Rahman and Abdulla Shafeeu.
President Muizzu condemned the drone attack by Houthi forces on Mecca, describing any act that threatened the safety and sanctity of Islam’s holiest city as "completely unacceptable and deeply offensive to the entire Muslim ummah".
President Muizzu read out a message that he said was from the Malaysian Prime Minister Anwar Ibrahim to the ongoing congress of the ruling party, saying that the party's “enduring commitment to the values of democracy, social justice and islamic ethos of nationhood converges with our framework of Malaysia Madani”. Muizzu claimed that Anwar had wanted to remain in the Maldives to attend Tuesday night’s congress ceremony but had to return to Malaysia to attend an official ceremony on Wednesday morning.
The Coast Guard intercepted a foreign vessel fishing inside the exclusive economic zone. The MNDF said that the vessel, which had six crew members, was operating 123 nautical miles east of Kaafu Dhiffushi and that it was being brought to Malé.
A delegation from the Chinese Communist Party, led by Peng Xiubin, the Director General of the party's Bureau for the South Asian Affairs at the Department of the Central Committee, paid a courtesy call on President Muizzu on Wednesday.
