The Civil Court has ordered Vivco Energy Solutions Pvt Ltd, along with guarantors Cypria Pvt Ltd and Abdulla Saeed of M. Nirolhu, to settle more than USD 3.4 million owed to the National Development Bank (NDB) of Sri Lanka after defaulting on loan agreements.
The case centred on short-term loan facilities totalling USD 3.76 million, granted to Vivco Energy Solutions under offers made in June 2022 and February 2023. The Court found that the company, together with its guarantors, had failed to honour repayment terms.
As of 31 May 2025, outstanding liabilities stood at USD 3.38 million under the loan facilities and a further USD 27,641.62 under an overdraft facility. In addition, the Court ordered the defendants to cover USD 10,000 in legal costs. They have been given until 23 November 2025 to repay the sums in full, with interest and penalties continuing to accrue until settlement.
The ruling also confirmed the Bank’s rights over Vivco Energy Solutions’ receivables, which remain pledged as security until repayment is completed.
Observers warn that such cases may have broader implications for Maldivian businesses seeking overseas financing. With many large-scale projects in tourism, infrastructure and energy relying on foreign loans, defaults of this scale risk damaging international confidence and driving up borrowing costs for the wider private sector.
Analysts argue that strengthening enforcement mechanisms and improving corporate governance are essential to maintaining the Maldives’ financial credibility and ensuring continued access to foreign credit.
