President Dr Mohamed Muizzu announced that the government will release USD 12.97 million next week to small private enterprises with outstanding invoices of less than USD 64,870. The measure reflects the administration’s pledge to clear payments to small businesses within 15 days.
At a press conference on 2 March, President Muizzu said the country’s economic position remains strong. He underscored that the national economy is being managed strategically to ensure the smooth servicing of external foreign debt. The administration, he noted, is experiencing no difficulties in meeting international obligations while also fulfilling domestic commitments to public and private entities. To reinforce this approach, the government has adopted a practice of releasing portions of funds owed to small businesses on a weekly basis, culminating in the upcoming distribution.
“The coming week will serve as a period in which a minimum of MVR 200 million [USD 12.97 million] will be distributed to small businesses and corporate entities for services rendered to the government,” President Muizzu stated. “We are actively dispensing funds on a weekly basis, with a strategic priority placed on vendors holding smaller outstanding balances.” He added: “Accordingly, next week’s disbursements will be directed toward settling invoices that total less than MVR 1 million [USD 64,870].”
The initiative builds on extensive public expenditure during the previous year aimed at strengthening small and medium-sized enterprises. Over that period, the government settled invoices exceeding USD 408.56 million to support local businesses. Officials contend that these measures will provide structural and financial empowerment to SMEs nationwide. In recognition of these efforts, the administration has projected that the current fiscal year will be formally designated as the year of small and medium enterprises.