Government Dividend Income Plummets 36 Percent Amid Declining State Enterprise Profits

The Maldivian government has collected USD 10.38 million in profits from state-owned enterprises (SOEs) as of May 14, marking a sharp 36 percent decline compared to the USD 16.73 million received during the same period last year. The findings were revealed in the latest Weekly Fiscal Development Report released by the Ministry of Finance and Public Enterprises. This downturn puts the state's financial targets at risk. The national budget for the current year allocated USD 22.83 million in expected returns from SOE profits, meaning the government has achieved only 30 percent of its target thus far. Finance officials attributed the shortfall primarily to a decline in corporate profits across the state-owned sector. Beyond direct dividends, the government projected a total of USD 49.87 million in combined profit and interest from various sources by the end of the year. To date, the state has secured USD 15.76 million, representing roughly 31 percent of the total budgeted amount. Historical data suggests a concerning downward trend in revenue contributions from the state sector. Dividend receipts plummeted from USD 71.3 million in 2024 to USD 53.4 million last year, indicating a sustained contraction in the profitability of these entities. Of the 30 companies owned by the government, only six are projected to pay dividends this year. Telecommunications provider Dhiraagu is expected to be the largest contributor with USD 16.99 million. Other significant contributors include the Bank of Maldives (BML) at USD 9.99 million and Maldives Airports Company Limited (MACL) at USD 3.24 million. Rounding out the contributing companies are the Malé Water and Sewerage Company (MWSC) with USD 1.95 million, the Housing Development Corporation (HDC) with USD 1.30 million, and Maldives Ports Limited (MPL) with USD 778,000.