Government Targets 15-Day Timeline to Settle SME Payment Delays

The government is moving to address persistent payment delays affecting small and medium enterprises, with the Ministry of Finance aiming to settle outstanding dues to local SMEs within a 15-day timeframe.

Speaking to state media, Finance Minister Moosa Zameer acknowledged that delayed payments for goods and services supplied to government institutions and state-owned enterprises have become one of the most pressing challenges facing SMEs. Businesses have repeatedly raised concerns that extended payment timelines are disrupting cash flows and day-to-day operations, despite earlier assurances on settlement schedules.

The Minister said the Finance Ministry is working on an immediate fix, with the objective of disbursing outstanding payments to SMEs within two weeks. He noted that efforts over the past year have focused on clearing arrears to both local and foreign suppliers, citing MVR 6.3 billion paid to local businesses and MVR 1.5 billion to foreign companies during the period.

According to the Minister, the government has also addressed MVR 882 million in long-standing bills owed by state-owned enterprises to private businesses. He added that while MVR 1.3 billion in dues has been settled so far, MVR 791 million remained outstanding as of 21 December.

The renewed focus on payment discipline comes as Mohamed Muizzu has designated the next two years, beginning in 2026, for targeted measures aimed at advancing the SME sector. As part of this approach, the government revised its procurement policy this week to prioritise SMEs for contracts valued below MVR 5 million, signalling a shift towards greater participation of smaller firms in public sector spending.