By: Staff Writer
July 29, Colombo (LNW): The Sri Lanka National Film Corporation (NFC) has appointed an expert committee to address longstanding inefficiencies and malpractices since its inception in 1971.
Criticism from film industry stakeholders has mounted, accusing the NFC of impeding local cinema growth and demanding its relegation to a regulatory role, removing its functions as a film distributor and cinema hall owner.
Stakeholders argue that bureaucratic mismanagement by the NFC has stifled the industry for over three decades, advocating for the complete liberalization of film distribution and importation, and urging cinemas to operate without undue influence.
Stakeholders stress the importance of allowing exhibitors to run their businesses based on market demands and capacity utilization.
They propose restructuring the NFC to better support private sector exhibitors, producers, importers, and distributors.
The NFC has faced numerous challenges, including the insurrections of 1971 and 1987-1989, a three-decade-long civil war, and the Easter Sunday bombings.
However, stakeholders claim the NFC’s monopoly over film distribution and importation is the primary cause of the industry’s decline, preventing cinemas from accessing quality content and diminishing the country’s film-going culture.
Deepal Chandraratne, Chairman of the NFC, announced that the newly appointed committee includes representatives from all segments of the cinema sector.
The committee’s task is to develop recommendations to replace the existing distribution process, currently controlled by four boards, with a more open system that encourages growth and innovation in the industry.
These findings will be submitted to the Cabinet, potentially leading to policy changes and regulatory reforms.
The Cabinet has also approved amendments to the National Film Corporation of Sri Lanka Act, which has remained unchanged since 1972, aiming to align the legislation with contemporary industry standards and address stakeholder concerns.
In 2001, partial liberalization allowed four private circuits—Lanka Film Distributors Ltd. (LFD), E.A.P. Films and Theatres Ltd. (EAP),
Movie Producers and Importers Ltd. (MPI), and Cinema Entertainment Ltd. (CEL)—to enter the market alongside the NFC. This move revitalized film importation and increased investments and revenue in the industry. Despite these changes, a 2019 gazette notification re-established the NFC’s control over film distribution tasks, leading to reluctance among major foreign studios to engage with the Sri Lankan market due to the NFC’s monopoly and inability to import high-quality films.
Film hall owners are currently struggling, and stakeholders suggest that the state should encourage alternative profit-making uses for these properties.
They argue that the private sector is not responsible for the closure of cinemas and that the NFC should be held accountable for failing to recover loans granted for renovations.
Industry stakeholders have urged the Committee on Public Enterprises (COPE) to recommend transforming the NFC into the sole regulator of the film industry, enhancing efficiency among its 185 staff members.
