Spending on PSIP Drops 67% Amid Contractor Payment Delays

Government spending on the Public Sector Investment Programme (PSIP) dropped by 67% year-on-year as of 19 June, according to Finance Ministry data. Disbursements were MVR 1.6 billion compared to MVR 4.8 billion in the same period last year. Delayed payments to contractors and a lack of new projects have caused the decline. Airport development received the largest share (MVR 540.5 million), followed by land reclamation, the Thilamalé Bridge, harbour development, water/sewerage, and environmental protection. The total PSIP budget for the year is MVR 12.3 billion. Some contractors have declared bankruptcy, and several ongoing projects have been handed to state-owned enterprises, sidelining private contractors.

Government spending on the Public Sector Investment Programme (PSIP) dropped by 67% year-on-year as of 19 June, according to Finance Ministry data. Disbursements were MVR 1.6 billion compared to MVR 4.8 billion in the same period last year. Delayed payments to contractors and a lack of new projects have caused the decline. Airport development received the largest share (MVR 540.5 million), followed by land reclamation, the Thilamalé Bridge, harbour development, water/sewerage, and environmental protection. The total PSIP budget for the year is MVR 12.3 billion. Some contractors have declared bankruptcy, and several ongoing projects have been handed to state-owned enterprises, sidelining private contractors.

Government spending on the Public Sector Investment Programme (PSIP) dropped by 67% year-on-year as of 19 June, according to Finance Ministry data. Disbursements were MVR 1.6 billion compared to MVR 4.8 billion in the same period last year. Delayed payments to contractors and a lack of new projects have caused the decline. Airport development received the largest share (MVR 540.5 million), followed by land reclamation, the Thilamalé Bridge, harbour development, water/sewerage, and environmental protection. The total PSIP budget for the year is MVR 12.3 billion. Some contractors have declared bankruptcy, and several ongoing projects have been handed to state-owned enterprises, sidelining private contractors.

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