MACL pays employees in US dollars as usual

The Maldives Airports Company Limited (MACL) deposited half of the monthly salary for its employees in US dollars as usual this week, despite instructions for state-owned enterprises to suspend the payment of salaries in US dollars.

The Privatization and Corporatization Board (PCB), which is charged with regulating all SOEs, issued a circular on September 3 instructing companies to stop USD salary payments as part of a string of new cost cutting measures.

However, Sun was able to confirm through multiple reliable sources that MACL’s employees received half of their salary in USD as usual on Sunday.

MACL was not available for official comment regarding the decision.

The MACL began paying half of employees’ salary in USD back when India’s GMR used to run the national airport. It suspended the USD payment in 2020 when the country’s borders were closed due to the Covid-19 pandemic, but resumed USD salary payments again in September last year.

The company’s employees also received an annual bonus of MVR 25,0000 with their salaries on Sunday.

MACL, which manages the Velana International Airport, is a top earner among state-owned enterprises.

The PCB had instructed the cost cutting measures as Maldives faces a severe USD crunch and mounting public debt.

On September 11, Moody’s downgraded Maldives’ credit rating from ‘CAA1’ to ‘CAA2’, citing an increased risk of default on its external debt obligations. It came after Fitch downgraded the country’s rating from ‘CCC+’ to ‘CC’ on August 29. The country has an external debt service obligation of about USD 600 million due in 2025 and more than USD 1 billion in 2026.