TMA decides to pay employee salaries in MVR

Trans Maldivian Airways (TMA), the world’s largest seaplane operator, has decided to pay employee salaries in Maldivian Rufiyaa (MVR), citing difficulties arising from new foreign exchange regulations affecting tourism operators.

The decision follows a law requiring tourism businesses to deposit a portion of their US dollar revenues into local banks, a move aimed at increasing foreign currency reserves within the domestic banking system.

Maldives Monetary Authority (MMA) first introduced the requirement through a regulation last year, which was later made into law.

TMA management met employees yesterday to outline the challenges posed by the new law and to inform them that salaries would be paid in MVR going forward. However, the company has not yet made a formal announcement or confirmed when the change will take effect.

The move follows a recent decision by Universal Enterprises, where service charges for employees will also be paid in MVR.

Under the Foreign Exchange Act, which came into force in January, tourism operators are classified into three categories;

- Category A: Resorts must deposit either USD 500 per tourist or 20 percent of their monthly revenue

- Category B: Guesthouses are required to deposit USD 25 per tourist or 20 percent of monthly income.

- Category C: Other tourism service providers must deposit 20 percent of their dollar earnings if annual revenue exceeds USD 15 million.