Sri Lanka cinema industry seeks urgent reform as revival efforts stall

Sri Lanka’s cinema industry, struggling to recover from pandemic disruptions, is demanding urgent reforms to outdated policies under the National Film Corporation (NFC). Stakeholders say the state body should step back from its role as film distributor and theatre operator and instead serve only as a regulator.

Cinemas, now allowed to operate at full capacity, are seeing audiences return. However, exhibitors argue that decades-old restrictions—particularly the rigid quota system limiting film imports—are crippling the Rs. 10 billion industry. Current rules cap annual imports at 65 English, 25 Hindi, 70 Tamil, and 25 other-language films, leaving dozens of titles blocked from release despite rising demand.

Industry leaders note the policy is outdated, especially as Sinhala cinema itself is thriving, with six films this year grossing over Rs. 200 million each. Box office revenues have already surpassed Rs. 1.5 billion in the first half of 2025, compared to just Rs. 7 million in 2024.

Private investors are building new multiplexes in cities such as Kandy and Galle, but warn that without regulatory reform, growth will stall. “We must modernise our laws to safeguard Sri Lanka’s cinema,” said Liberty Cinemas Chairman Imthiaz Cader.

 

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