Audit shows Development Bank lost MVR 2.3m during setup period with zero revenue

The Development Bank of Maldives (DBM) booked a net loss of MVR 2.3 million in its first reporting period, despite not having started core banking operations, according to the 2024 audit report released by the Auditor General’s Office.

The audit covers the period from July 21, 2024 to December 31, 2024. The report states that DBM did not commence any core business activities during this time and generated no revenue. The loss arose entirely from establishment and administrative expenses.

DBM’s share capital stands at MVR 3 million. Following the loss, the bank’s total equity fell to MVR 736,196.

The financial statements show that as of December 31, 2024, DBM recorded a loss before tax of MVR 3,018,405. After recognising a tax credit of MVR 754,601, the net loss for the period was MVR 2,263,804.

The bank spent MVR 909,763 on staff salaries and benefits and MVR 2,108,642 on other administrative expenses.

Among major expense lines, the largest outlay was on office rent, at MVR 1.1 million. Remuneration for board members amounted to MVR 311,300. In addition, MVR 340,261 was spent on electricity and MVR 214,483 on travel expenses.

As of December 31, 2024, DBM’s total assets stood at MVR 3,074,735, including MVR 2,320,134 in cash. The board approved the financial statements on March 8, 2026. The statements were signed by Chairperson Aruni Goonetilleke and CEO Nizardh Nizar.

DBM is a 100 percent government‑owned development finance institution established to fund economic projects and support development activities in the Maldives. As the bank was still in its start‑up phase during the audited period, it did not generate any operating income.

The bank was incorporated on May 16, 2024 and formally inaugurated on November 16, 2024. The Maldives Monetary Authority (MMA) granted DBM its banking licence on October 13, 2024 and later issued business commencement approval in January 2026. However, commercial services to the public have yet to begin.

President Dr. Mohamed Muizzu appointed two foreign experts to lead the institution: Sri Lankan banking veteran Aruni Goonetilleke as Chairperson and UK national Noel Gregor Paterson‑Jones as CEO. Paterson‑Jones resigned on March 20, 2025 and subsequently filed a case with the Employment Tribunal on April 7, seeking unpaid salary and benefits for his notice period.

Shortly after his departure, board director Ahmed Ali also resigned on March 23, 2025.