The government has once again adjusted its timeframe for settling unpaid bills owed by state-owned enterprises, as frustration continues to mount within the business community over delayed payments.
Outstanding receivables from government-owned companies have long been cited by both small and medium enterprises and larger firms as a drag on cash flow and business continuity. Despite multiple assurances this year, suppliers say delays remain unresolved, prompting renewed discussions at the highest level.
The issue resurfaced during President Mohamed Muizzu’s meeting with small and medium enterprises on Wednesday, where business owners described how unpaid bills were affecting their ability to operate. Several participants also raised concerns about having to meet tax obligations despite not receiving payment for goods and services already delivered.
The President said the government would look into regulatory options, with consultations planned between the Maldives Inland Revenue Authority and the Ministry of Finance to examine what relief or adjustments could be made within the current legal framework. He indicated that the aim was to identify a workable solution that addresses both payment delays and the knock-on impact on tax compliance.
While no figures were disclosed, the President said partial payments would be released to some businesses before the end of the month, with the remaining backlog expected to be cleared by the month of Ramadan. He also said that once payments are made, related issues linked to outstanding tax liabilities would be reviewed.
This is not the first time deadlines have been revised. In early October, the President said suppliers would be paid within five weeks. In early November, he said payments were being processed daily and would continue until all arrears were cleared. Later, at a meeting with residents of Machchangolhi in late November, he said the bills would be settled by the end of the year.
