SME Payments Targeted for Settlement Before Ramadan, Says Gov’t

The Finance Ministry has confirmed that the government is working to clear outstanding payments owed to Small and Medium Enterprises (SMEs) ahead of Ramadan, the third deadline set by President Dr. Mohamed Muizzu for settling the dues.

SMEs had raised concerns about prolonged delays in receiving payments for government-contracted projects during a meeting with President Muizzu on 17 December. Outstanding payments dating back more than a year reportedly total millions of rufiyaa, and business owners requested that the government offset the dues against taxes they owe.

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President Muizzu assured that the payments would be settled before the start of next Ramadan. The Finance Ministry stated that efforts to clear the outstanding payments are ongoing, though it did not provide details on how many businesses have been paid, the amounts settled, or the total remaining. The Ministry also declined to confirm whether all outstanding payments would be cleared before Ramadan.

Previously, President Muizzu indicated that the government owes approximately MVR 2 billion to businesses. He initially set a deadline to settle the dues during last Ramadan. When this target was not met, a second deadline was announced on 26 November, with assurances that payments would be completed before the end of the year.

During the December meeting, SMEs also highlighted challenges in accessing government projects, noting that State-Owned Enterprises (SOEs) are often awarded contracts without a competitive bidding process and that some SOEs have ventured into businesses outside their mandates.

President Muizzu has designated the next two years, beginning in 2026, for implementing special measures aimed at advancing the SME sector.