The Privatization and Corporatization Board (PCB) has ordered state-owned enterprises earning revenue in dollars to stop paying dollar-denominated salaries to their employees.
The board issued a circular today ordering government companies and their subsidiaries to reduce costs. The circular, which mentioned several measures, ordered companies to cut expenses on travel, employees as well as general costs.
The only SOE that pays employees in dollars is the Maldives Airports Company (MACL). The government has now decided to bring the Regional Airports Company Limited (RACL) under the company.
Prior to the decision, MACL had a total of 4,264 employees. Two-thirds of the employees' salaries and allowances have been paid in dollars so far.
The PCB's order comes amid a severe shortage of foreign currency in the country. The national bank, Bank of Maldives (BML), recently decided to cut off dollar support to Rufiyaa accounts.
However, the decision was later reversed after consultations with the government and the central bank, Maldives Monetary Authority (MMA). The MMA's usable dollar reserves have also fallen to a record low.
