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Virus crisis forces Maldives to cut public sector wages
Maldives is cutting wages and other benefits in the public sector and state enterprises for at least three months, as part of austerity measures to mitigate the impact from the novel coronavirus pandemic.
Finance minister Ibrahim Ameer told reporters Thursday that 25 per cent from wages between MVR 20,000-25,000 ($1,290-$1,613), 30 per cent from wages between MVR 25,000-60,000 ($1,613-3,871), and 35 per cent from salaries above MVR 60,000 ($3,871) in the public sector will be cut.
These cuts will not affect employees receiving wages below MVR 20,000 ($1,290), but will only apply to basic salaries of contract staff and top officials such as permanent secretaries in the civil service and officials from other state institutions and independent bodies, he said.
Caps will also apply to limit allowances and other benefits to public sector employees.
Take home pay will be capped at:
- MVR 25,000 ($1,613): for basic salaries below MVR 10,000 ($643)
- MVR 30,000 ($1,935): for basic salaries between MVR 10,000-15,000 ($643-967)
- MVR 35,000 ($2,258): for basic salaries between MVR 15,000-20,000 ($643-1,290)
- MVR 40,000 ($2,581): for basic salaries between MVR 20,000-25,000 ($1,290-1,613)
- MVR 45,000 ($2,903): for basic salaries between MVR 25,000-30,000 ($1,613-1,935)
“From our estimates, these pay cuts will allow us to save some MVR 15 million ($967,993) per month from state expenditure,” Ameer said.
The finance minister said a 32 per cent cut will be made from the basic salaries of managing directors, deputy managing directors and chief executives of state-owned companies. They will not be receiving the MVR 11,500 ($742) board allowance either, he added.
The government had earlier announced plans to shave MVR 5 billion ($324 million) off state expenditure and reduce the total state expenditure for the year to MVR 30 billion ($1.944 billion) from the approved MVR 38.7 billion ($2.5 billion).
Previous austerity measures include a 20 per cent cut on salaries and allowances of all political appointees, and 30-70 per cent cuts across travel, training, renovations and capital equipment budgets.
A 36 per cent reduction has also been made to capital grants allocated to local councils under a recent legislative amendment to give more powers and financial flexibility to the local administration in the islands.
The Public Sector Investment Programme has also been put on hold.
The Maldives is also looking to secure a freeze on loan repayments worth MVR 4 billion ($259.2 million) under a recent debt moratorium agreed by the world’s wealthiest countries in the G20 grouping.
The Maldives is looking to borrow $233.37 million from international lenders to plug the gap in balance of payments stemming from the coronavirus pandemic.
Funds already pledged by international lenders include $28.9 million from the International Monetary Fund (IMF), $20 million from the OPEC Fund for International Development, $17.3 million from the World Bank, and $3.28 million from the European Union.
In the meantime, the government will borrow MVR 4.2 billion ($272 million) under an overdraft facility at the central bank to cover state expenses and maintain public services amidst the coronavirus pandemic.
The coronavirus outbreak has hit the Maldivian economy hard, as travel restrictions and other preventive measures affect the country’s lucrative tourism industry, which contributes the bulk of the island nation’s state revenue and foreign reserves.
Before the pandemic, the government had been bullish about tourism prospects, targeting two million, high-spending holidaymakers this year after last year’s record 1.7 million.
However, tourist arrivals saw a year-over-year decline of 22.8 per cent in the first 10 days of March. Officials say the number of tourist arrivals to the Maldives could drop by half in 2020.
All international airlines have suspended scheduled operations to the Maldives, as the island nation enforced a blanket suspension of on-arrival visa in late March in a bid to combat the spread of the novel coronavirus.
Even before the visa suspension, the Maldives had closed its borders to arrivals from some of the worst-hit countries, including mainland China, Italy, Bangladesh, Iran, Spain, the United Kingdom, Malaysia and Sri Lanka. Visitors from three regions of Germany (Bavaria, North Rhine-Westphalia and Baden-Württemberg), two regions of France (Île-de-France and Grand Est) and two regions of South Korea were also banned from entering the country.
All direct flights to and from China, Italy, South Korea and Iran were also cancelled.
Cruise ships and foreign yachts were also banned from docking at any of the country’s ports.
With arrival numbers falling and the visa suspension in effect, several resorts across the Maldives had been closed.
Tourism has been the bedrock of the Maldives’ economic success. The $5 billion-dollar economy grew by 6.7 per cent in 2018 with tourism generating 60 per cent of foreign income.
However, the government is at present projecting a possible 13 per cent economic contraction this year — an estimated $778 million hit.
On March 8, Maldives reported its first cases of the novel coronavirus, as two hotel employees tested positive for Covid-19 at a luxury resort in the archipelago.
Eighteen more cases — all foreigners working or staying resorts and liveaboard vessels except five Maldivians who had returned from abroad — were later identified.
A six-case cluster of locals, detected in capital Male on April 15, confirmed community transmission of the coronavirus. Several more clusters have since been identified, bringing the total number of confirmed case in the Maldives to 618.
Two deaths have been reported and 20 have made full recoveries. Five remain in intensive care.
The Maldives announced a state of public health emergency on March 12, the first such declaration under a recent public health protection law.
The public health emergency declaration has allowed the government to introduce a series of unprecedented restrictive and social distancing measures, including stay-at-home orders in capital Male and its suburbs, a ban on inter-island transport and public gatherings across the country, and a nationwide closing of government offices, schools, colleges and universities.
Non-essential services and public places in the capital such as gyms, cinemas and parks have also been shut.
Restaurants and cafes in the capital have been asked to stop dine-in service and switch to takeaway and delivery.
A nationwide shutdown of all guesthouses, city hotels and spa facilities located on inhabited islands is also in effect.
Celebrating the spirit of modern Maldivian hospitality, VARU by Atmosphere has expanded its culinary offering with two new dining venues: Teppanyaki Over Water and Cellar at NÜ. Designed for both first-time and returning guests seeking authentic, inventive experiences, the additions broaden the resort’s gastronomic landscape.
At Teppanyaki Over Water, seasoned chefs transform the art of teppan grilling into a live culinary performance above the lagoon. Premium seafood, wagyu and sushi are prepared with precision and flair, complemented by sake cocktails and fine soju. The speciality restaurant delivers dishes straight from the grill to the plate, in an ambience that reflects the spirit of Japanese hospitality.
As sunset draws over the Indian Ocean, Cellar at NÜ offers an elegant overwater wine-degustation lounge where evenings unfold with sophistication. Guests can explore rare vintages and special selections paired with curated chocolate, cheese and charcuterie platters. The centrepiece is a six-course Royal Wine Pairing Dinner.
“At VARU, our cuisine, design and service are intuitive and inventively curated,” said Maurice Van Den Bosch, General Manager of VARU by Atmosphere. “We continue to evolve in meaningful ways. With Teppanyaki Over Water and Cellar at NÜ, we’ve created culinary journeys that are intimate, enriching and true to the island’s generous spirit — offering guests new reasons to return, season after season.”
For special occasions, romantic evenings or those wishing to discover new cuisines, the two overwater venues add an extra layer of indulgence and celebration beyond the VARU Plan™, and are available for guests to pre-book.
Located in North Malé Atoll, VARU by Atmosphere has been recognised in Tripadvisor’s Travellers’ Choice Awards Best of the Best 2025, ranking among the top 1% of listings worldwide. Its signature restaurant, Kaagé, has also received the Tripadvisor Travellers’ Choice Award 2025 for the fifth consecutive year, underscoring the resort’s reputation for dining excellence. With these thoughtfully introduced experiences, VARU by Atmosphere invites guests to embrace an unforgettable, Naturally Maldivian island adventure.
Villa Park has announced its Festive 2025–2026 programme, running from 20 December 2025 to 6 January 2026. The schedule moves from lagoon-side mornings to music-led evenings on the beach, beginning with a sunset welcome and continuing with beach barbecues, creative workshops, Christmas Eve dinner, Santa’s visit on 25 December, and a New Year’s Eve gala with a midnight countdown. The season concludes with programmes on New Year’s Day and Orthodox Christmas.
Daytime activities include chef demonstrations, shoreline art sessions, and live music. Evenings feature romantic tables, treetop dining for two, and simple set-ups that highlight the island setting. The programme is designed for couples, friends, and families to join as they wish.
Family programming centres on Park Players, presented as the Maldives’ largest kids’ club, with letters to Santa, gingerbread crafts, ocean-themed art, movement classes, story time, and film nights. Group sizes are kept small to ensure attentive supervision.
Villa Park’s family offering has been recognised beyond the festive season, with the resort named among the Best Resorts for Families in the Maldives at the Travel + Leisure Luxury Awards Asia Pacific 2025, a reader-voted accolade reflecting guest feedback on space, programming, and flexible pacing.
Throughout the calendar, private experiences sit alongside larger celebrations, including candlelit beach dining, treetop tastings, floating breakfasts, and open-air cinema for two. Guests can set their own rhythm, whether opting for lively beach gatherings or quiet evenings under lanterns and palms, from sunrise through to the New Year countdown and beyond.
Anantara Kihavah Maldives Villas is inviting guests to embark on a holistic journey guided by three visiting wellness practitioners, each specialising in distinct approaches to healing. Drawing on traditional knowledge and contemporary practice, the practitioners will offer therapies at the resort’s overwater spa designed to align body, mind, and spirit in a tranquil Maldivian setting. Disciplines include Ayurveda, energy-based therapies, sound healing, and mindful movement, with personalised consultations and bespoke treatments available.
A fifth-generation Ayurvedic physician, Dr Jithurag continues a 300-year family lineage rooted in holistic balance. Trained within the Rameswaram Tantric tradition, he blends Ayurvedic principles with elements of Traditional Chinese Medicine, integrating marma therapy and acupuncture with Reiki and Pranic Healing. Using wellness screening technologies to assess biomarkers, he designs tailored treatment plans. Guests may book a complimentary consultation and choose from signature therapies such as TCM Acupuncture, Cupping Therapy, Marma Abhyanga, and Back Restoration Therapy.
Holistic therapist and Ayurvedic healer Sharath Ram brings more than 16 years’ experience in supporting physical, mental, and spiritual balance. His work combines Ayurveda with energy practices and therapeutic yoga to encourage both recovery and transformation. His specialities include Chakra Inner Energy Balancing, Ayurveda Deep Fusion Therapy, Visceral Manipulation, Maderotherapy, and Mind-Body Healing. He will also lead complimentary workshops, including The Art of Breathing and Dynamic Meditation, focusing on breathwork and movement to promote calm and clarity.
From Kerala, India, Vinod Narayanan offers over a decade of experience in Ayurveda, yoga, and holistic healing across Europe, Africa, and Asia, including service as a personal physician to dignitaries. At Anantara Kihavah he will provide therapies such as Himalayan Sound Healing Massage, De-Armouring Body Therapy, Abdominal Detox, Access Bars Energy Healing, and Gut-Brain Rewiring. Using vibration, touch, and energy alignment, his sessions aim to release emotional blockages, improve circulation, and support the body’s natural rhythm. Complimentary consultations are available, alongside sound-based journeys that seek to harmonise body and spirit.
Together, the practitioners complement Anantara Kihavah’s wellbeing philosophy, extending from Ayurvedic traditions to sound therapy. Guests are invited to the overwater Anantara Spa for bespoke treatments, meditative workshops, and one-to-one consultations that encourage connection with self and nature.
Further enhancing the experience, the resort has introduced reimagined Beach Pool Villas featuring natural textures, open-plan spaces, and private pools set within tropical greenery.
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