Maldives Monetary Authority (MMA) Governor Ali Hashim has advised caution over economic policies.

The Governor made his remarks while speaking on the proposed amendments to the Tourism Act at the Parliament’s Committee on Economic Affairs on Monday. He stated that cutting down resort rent is ill-advised in the present economy.

Governor Hashim drew example from neighbouring Sri Lanka, adding that drastic economic policies have added to the country's economic crisis, leading to Sri Lanka seeking relief from International Monetary Fund (IMF). He added that world affairs such as the Russia-Ukraine crisis has affected world economy, and that the government should not take any measures that would reduce state revenue at present.

"It is ill-advised to take actions that would reduce revenue in the midst of Russia-Ukraine crisis and the supply side shocks", Governor said.

He further added that the proposed bill and its effects need to be analysed, and requested Maldives Inland Revenue Authority (MIRA) to provide relevant information for the analysis.

Speaking at the meeting, MIRA's Deputy Commissioner General, Asma Shafeeu, stated that the government revenue would decrease by MVR 590 million if the proposed amendments are approved to reduce resort rent.