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Terrorism struck at the heart of the honeymoon destination of the Maldives yesterday when a bomb exploded in a crowded park and left a British couple with 'significant' burn injuries.

The islands, famed for their tranquillity, came under attack with an explosion outside the main mosque in the capital, Male, that left 12 people injured. Local media said the bomb was triggered by a home-made device using a mobile phone and washing machine motor attached to a gas cylinder. A witness reported seeing nails scattered in the park before the area was cleared by local security forces. There was no immediate clue as to whether it was the work of the al-Qaeda terrorist network or another group or individual.

The British victims were said to be in a stable condition. Mahmood Shaugee, the Maldives' tourism minister, told Reuters: 'Twelve were injured - two British nationals, two Japanese and eight Chinese. The Japanese nationals and Chinese have been treated for minor injuries and discharged from the hospital.'

He added that the two British victims were still receiving treatment. 'They sustained significant burns but they are stable and out of danger.' It is thought the couple were staying on Baros, one of 87 designated tourist islands among nearly 1,200 in the ocean chain.

A spokeswoman for Universal Resorts, a firm based in the Maldives that owns Baros and other resorts, confirmed that two British guests had been injured. She said the couple, who live in the Gulf state of Qatar, were already preparing to fly back to the Middle East. 'Those two guests are being taken care of in the hospital in Male and are with Universal Resorts staff,' the spokeswoman said. 'Both of them have received some burns. They are burns to hands, legs and some cuts, but they are not serious and most definitely are not life-threatening.'

Each year thousands of British holidaymakers, many on honeymoon, visit the islands in the Indian Ocean, presented by travel brochures as a tropical paradise of abundant sealife and sandy beaches. The threat of terrorism is classed as 'low' in official Foreign Office advice to tourists. But the attack will evoke memories of al-Qaeda's devastating attack on tourists on the island of Bali five years ago next week, which left 202 people dead.

This week's bomb was detonated outside Sultan Park, a stop-off for tour groups in Male. The park is in the shadow of the Maldives army headquarters, and several surveillance cameras are trained on the area. A government spokesman, Mohamed Shareef, said the park was crowded at the time of the blast as many locals were breaking their fast during the holy month of Ramadan.

'Just after 14.30 there was a large explosion, just inside the main gate of the central park in Male,' Shareef added. 'The police told me it was some sort of home-made device. There were 12 tourists who suffered injuries, but none of them have life-threatening injuries. They are still in a state of shock and police have still not interviewed them.'

He added: 'The Maldives has never had something like this before. We are taking this very seriously because tourism is our lifeblood.'

Shareef said police had launched an investigation and the government would seek help from Interpol, the United States and India.

The Muslim country has a reputation for safety, and its president, Maumoon Abdul Gayoom, is Asia's longest serving leader, having first taken office in 1978. But human rights groups have accused him of running an autocratic state, and he has faced down attempted coups that saw violence flare in the streets.

In 1988 Indian troops suppressed a coup by invading Tamil mercenaries from Sri Lanka. The Maldives are due to hold its first multi-party elections by the end of next year.

Aside from the capital, Male, outsiders are only permitted on to inhabited islands for brief visits, limiting their impact on traditional Muslim communities.