State collects MVR 224mn in dividends from SOEs

The state collected MVR 224 million in dividends from state-owned enterprises (SOEs) during the first quarter of this year.

The latest weekly fiscal report released by the Finance Ministry shows the state collected MVR 224 million from SOEs as dividend as of April 10. This marks an increase of MVR 164 million compared to the same period last year.

The state is expected to collect MVR 710 million in dividends from SOEs this year, according to projections by the Finance Ministry. The state has now collected 31 percent of this figure.

The increase in dividend from SOEs come after a consistent decline in the revenue over the last five years, with many companies struggling with solvency issues.

In December, the Privatization and Corporatization Board (PCB) made several amendments to the code of corporate governance for state-owned enterprises. Under the new amendments, SOEs are now required to obtain permission from the Finance Ministry when making structural changes, taking loans or making investments or making bonus payments, instead of the PCB.