Amid growing economic concerns, the Maldives has unveiled strict foreign currency regulations aimed at stabilizing the island nation’s tax landscape. The new rules limit transactions made in foreign currencies and require tourism operators to deposit their income in local banks.

The changes come as the Maldivian economy grapples with significant foreign debt, with recent efforts to stave off a possible default on an Islamic bond with a $50 million loan from India. The move follows last year’s ‘India Out’ campaign, which impacted tourist arrivals and revenue.

The Maldives Monetary Authority (MMA) has issued these new rules, requiring most transactions to take place in Maldivian Rufiyaa, with the exception of certain exports and international transactions. Failure to comply with the regulations could result in fines of up to MVR 1 million.

(With input from agencies.)