Gov’t to Dissolve MITDC and AgroNat 

The Maldivian cabinet has decided to dissolve two state-owned enterprises – the Maldives Integrated Tourism Development Corporation (MITDC) and the Agro National Corporation (AgroNat), as part of ongoing cost-cutting measures.

The decision was made during a cabinet meeting held last Sunday. Additionally, the cabinet has approved the merger of several other state-owned enterprises: Regional Airports Company Limited (RACL) with the Maldives Airports Company Limited (MACL), Fahi Dhiriulhun Corporation (FDC) with the Housing Development Corporation (HDC), and the Business Center Corporation (BCC) with the Maldives Fund Management Corporation (MFMC).

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The President’s Office stated that the MITDC’s responsibilities will be transferred to the MFMC following the merger of BCC and MFMC. Similarly, AgroNat’s mandate, previously established to advance the agriculture sector, will be transferred to the Maldives Industrial Development Free Zone (MIDFZ).

The cabinet has set a deadline to implement these changes by the end of this year. Last week, a decision was also made to turn the Fenaka Corporation, a state utility company with significant debt, into a subsidiary of the State Trading Organization (STO).

These mergers and dissolutions are part of broader austerity measures aimed at improving the country’s financial situation. The Maldivian administration has introduced several initiatives to cut costs and increase revenue, including legal reforms to Aasandha, targeted subsidies, and tax regulations for companies earning in USD.