Panama changed the rules governing activities in seagrass beds and coral reefs through Law 560 of October 14, 2026, published on October 15 in Official Gazette 30635 A. The reform takes effect on October 16 and distinguishes the regulation of activities in seagrass ecosystems from the prohibition of interventions involving direct damage to reefs.

Article 1 replaces Article 12 of Law 304 of 2022 and gives the Ministry of Environment responsibility for regulating construction, modifications and other activities in seagrass ecosystems and their associated ecosystems. The provision covers both waters and substrate, with the aim of conserving these systems, their sustainability and ecological functioning. It also prohibits activities that could cause irreversible damage to their health.

For coral reefs, the new Article 12-A specifically prohibits construction, modifications or any activity involving direct damage, whether in the water or the substrate. The text also covers activities capable of causing irreversible harm to ecosystem health. Its scope therefore extends beyond construction work and interventions affecting the seabed alone.

The distinction matters when assessing coastal or tourism projects: the regulatory treatment depends on the ecosystem affected and the impact of the intervention. Authority to regulate activities in seagrass beds does not amount to blanket permission to carry them out, while the reef prohibition expressly includes direct damage. Describing both provisions as an unrestricted opening for new development would overlook the limits retained in the law.

For developers and operators, assessing the site and potential impacts is relevant before defining construction work or modifications. The approved text does not identify beneficiary projects, grant individual permits or quantify compliance costs. Nor does it establish, by itself, whether a particular initiative is viable or must be cancelled. That assessment requires knowledge of the project's characteristics and the other applicable provisions.

The reform replaces one article and adds another to Law 304 of May 31, 2022. Its immediate effect is to establish these two regulatory treatments from October 16; it does not replace the environmental assessment of each activity with automatic approval.