Sri Lanka’s cinema industry, battered by years of neglect and the COVID-19 pandemic, is calling for sweeping reforms and immediate policy changes to ensure its survival.

The National Film Corporation (NFC), once established to nurture the industry, is under mounting pressure from theatre owners, distributors, and producers to step back from operational roles and instead function solely as a regulator.

Industry leaders argue that unless the NFC aligns its outdated regulations with modern cinema realities, Sri Lanka risks losing billions in investments and seeing audiences permanently migrate to streaming platforms.

 Stakeholders, including Liberty Cinemas, EAP Films, Cinema Entertainment Ltd., and other distributors, have proposed a fully liberalised private-sector-driven model.

They allege that bureaucratic inefficiencies at the NFC have stifled growth for decades, citing its failure to support the digitalisation of cinema since 2000. Funds allocated by the Treasury for production facilities, film archives, and a national training school have reportedly gone underutilised, while the NFC itself runs at heavy losses.

The most contentious issue remains the outdated film quota system. Under current rules, set more than 25 years ago, annual imports are capped at 65 English films, 25 Hindi, 70 Tamil, and 25 in other languages.

While originally designed to protect Sinhala cinema, exhibitors say the restrictions no longer reflect audience demand. At present, over 15 Hindi and Tamil titles and nearly two dozen Hollywood releases, including IMAX screenings, are awaiting approval but cannot be imported due to quota limits.

“The quota system is crippling the Rs. 10 billion industry,” warned Film Exhibitors Association President Anuradha B. Rekawa. “It prevents audiences from accessing global content and undermines heavy private investment in theatres. Without reform, the industry cannot sustain its growth momentum.”

The figures underscore this potential. Box office revenue, which averaged just Rs. 7 million in 2024, soared to over Rs. 1.5 billion in the first half of 2025 alone, driven largely by successful Sinhala releases.

Industry stakeholders expect revenues to exceed Rs. 3.5 billion by year’s end. Six Sinhala films this year have already grossed more than Rs. 200 million each, with occupancy rates above 75 percent—higher than several Hollywood blockbusters.

Modern venues such as the IMAX theatre at Havelock City and the 4K-equipped JP Cineplex in Kandy have raised audience expectations. Multiplex projects are now underway in Kandy, Galle, Moratuwa, and Mount Lavinia, with investors seeking government support in land allocation and tax incentives.

Distributors argue that by modernising policies, Sri Lanka could both strengthen domestic film production and attract international filmmakers.

“The Government must act urgently to reform the NFC Act,” said Liberty Cinemas Chairman Imthiaz Cader. “We are the only country in Asia with such restrictions. Removing quotas and supporting innovation will ensure the future of Sri Lankan cinema.”

Industry leaders say they are ready to collaborate with authorities on a new framework that supports local creativity while opening doors to global markets. With audiences returning to theatres and major investments flowing in, stakeholders insist that reform now will determine whether Sri Lanka’s film industry revives—or risks fading into obscurity.

China has reiterated its commitment to strengthening cooperation with Sri Lanka under the Belt and Road Initiative (BRI), pledging continued support for infrastructure, trade, and cultural exchanges as part of what Beijing describes as a “shared future partnership.”

Speaking at a commemorative event at the BMICH on Wednesday (20) marking the 80th Anniversary of the “Victory of the Chinese People’s War of Resistance Against Japanese Aggression and the World Anti-Fascist War,” Chinese Ambassador to Sri Lanka Qi Zhenhong underscored the deep-rooted ties between the two nations.

“This epic new chapter of cooperation is the most vibrant tribute to history, the most solid foundation for peace, and will surely paint an even brighter picture for the future of Sri Lanka,” Ambassador Qi said.

He emphasized that the two countries have long been connected by the ancient maritime Silk Road, a foundation upon which modern collaboration continues to thrive.

Over the past decade, Sri Lanka has been a central partner in China’s Belt and Road Initiative in South Asia.

Major infrastructure projects, including the Hambantota Port, the Mattala Rajapaksa International Airport, the Southern Expressway extension, and the landmark Colombo Port City, stand as symbols of Beijing’s investment in Sri Lanka’s economic transformation.

These projects, often financed through Chinese loans and concessional assistance, have reshaped Sri Lanka’s connectivity and urban landscape.

Most recently, China has pledged new assistance packages, including concessional loans and technical support for energy sector modernization, renewable power projects, and digital infrastructure development.

 Agreements signed this year also include cooperation in agriculture, water management, and disaster relief, aimed at bolstering Sri Lanka’s post-crisis recovery.

China has already extended billions in aid and credit lines to Sri Lanka in recent years, including emergency support during the island’s debt crisis. Beijing was also among the first bilateral lenders to extend debt restructuring assurances to Sri Lanka during its IMF-led recovery program, further consolidating its role as Colombo’s key development partner.

Ambassador Qi highlighted that cooperation extends beyond physical infrastructure. “From the progress of the Hambantota Port to the rise of the Colombo Port City, and from infrastructure connectivity to the deepening of cultural exchanges, we are jointly writing a vivid chapter in the building of a China-Sri Lanka community with a shared future through concrete actions,” he said.

Sri Lankan officials, meanwhile, have welcomed continued Chinese support as vital for stabilizing the country’s economy, particularly in the face of debt challenges and fiscal constraints. As Sri Lanka navigates its recovery, analysts say Beijing’s BRI-linked projects and aid packages will play a crucial role in shaping both short-term relief and long-term growth prospects.

Sri Lanka’s tea industry, long considered the backbone of its agricultural exports, is navigating a turbulent year in 2025.

 While Ceylon Tea remains a prized global brand, the sector has been hit by declining export volumes, rising production costs, and external market pressures.

The recent increase in U.S. import duties on tea has further dampened earnings potential, creating uncertainty for exporters already grappling with higher energy costs and climate-driven supply fluctuations.

 Against this backdrop of mixed fortunes, Sri Lanka’s domestic tea sector is finding new opportunities in brand-building and retail diversification, with premium labels focusing on value addition rather than bulk exports.

 One of the strongest examples of this shift is Tea Avenue, the country’s flagship tea café chain, which is now stepping boldly into the Indian market.

Tea Avenue, a brand rooted in four generations of tea heritage, this week announced its official entry into India through a strategic partnership with FranGlobal, the international arm of Franchise India Group.

The move marks the Colombo-based chain’s first expansion outside Sri Lanka and signals its ambition to create a global network of more than 200 outlets by 2035.

Founded in 2014 by the De Silva family, Tea Avenue has redefined Ceylon Tea consumption from a traditional beverage to a lifestyle café experience. Known for its signature brews, curated menus, and modern design, the brand has grown into a leading destination for locals and tourists alike.

“Our brand is rooted in heritage, but it is also about creating spaces that reflect the way people live today,” said Sajeev De Silva, Founder and Managing Director of Tea Avenue. “India has always been on our horizon. With FranGlobal’s reach, we see this not just as an expansion, but as an extension of our story.”

The rollout in India will begin in Delhi, Mumbai, and Bangalore over the next 12 to 18 months under a Franchise-Owned, Franchise-Operated (FOFO) model. Formats will vary from flagship cafés to kiosks and in-hotel tea stations, offering investors flexible entry points.

 Alongside the café experience, Tea Avenue plans to launch a premium retail line including specialty tea blends, tea tins, and gift collections, allowing consumers to extend the experience into their homes.

 Jeewaka Liyanage, CEO of Tea Avenue, emphasized the group’s global ambitions. As part of Empire Teas—which exports over 14 million kilograms of Ceylon Tea to more than 120 countries—the café chain is leveraging its parent company’s market reach to establish itself internationally. “India is a cornerstone of our global journey,” Liyanage said.

For Tea Avenue, the India entry also carries cultural resonance. “India’s relationship with tea is rich, emotional, and deeply cultural,” noted Gaurav Marya, Chairman of Franchise India Group. “Tea Avenue is more than a café; it is a curated experience combining heritage and modernity.”

A high-level discussion to enhance bilateral cooperation between Sri Lanka and the Netherlands in the fields of fisheries and aquatic resources was held at the Parliamentary Complex between Fisheries, Aquatic and Ocean Resources Minister Ramalingam Chandrasekar and Netherlands’ Deputy Ambassador to Sri Lanka Iwan Rutjens. Ministry Secretary Dr. B.K. Kolitha Kamal Jinadasa was also in attendance.

Deputy Ambassador Rutjens underscored the longstanding historical and cultural ties between the two nations, highlighting the Dutch legacy in Sri Lanka’s Northern Province. He stressed the importance of safeguarding Dutch-built heritage sites, while also opening avenues for new development projects in the region. Dutch experts have already visited Jaffna, and Rutjens expressed his government’s keen interest in supporting heritage preservation efforts.

The Dutch footprint in Jaffna remains prominent, with landmarks such as the Jaffna Fort—originally built by the Portuguese and later expanded by the Dutch into its unique pentagon shape—standing as symbols of this shared history. Post-war, the Netherlands funded major restoration work on the Fort. Similarly, the ruins of the Dutch Kachcheri, and the Dutch-influenced islands of Delft and Kayts, continue to reflect this deep-rooted heritage.

While acknowledging these historic ties, Minister Chandrasekar sought Dutch technical expertise to advance Sri Lanka’s fisheries sector. Among his key proposals was the rehabilitation of the Oluvil Fisheries Harbour, currently unusable due to sand accumulation. He requested a sustainable technical solution, to which Rutjens assured consultations with Dutch companies, adding that concessional soft loan support may be considered if viable solutions are identified.

The Minister also proposed introducing environmentally friendly floating jetties in the Valaichchenai Lagoon in place of traditional concrete structures. He requested Dutch assistance in feasibility studies and environmental assessments, given Sri Lanka’s lack of prior experience in this field.

Additionally, Sri Lanka sought Dutch collaboration in aquatic plant tissue culture, particularly the micro-propagation of aquatic ferns. The Ministry expressed interest in partnerships between Dutch experts and local institutions, including NARA, NAQDA, and private sector stakeholders. In response, Rutjens welcomed the proposal, assuring that the Embassy would facilitate connections with Dutch universities and specialists to establish a structured knowledge-sharing programme.

Leader of the House and Minister of Transport, Highways and Civil Aviation, Bimal Rathnayake, told Parliament that conducting vehicle emission tests remains essential, despite concerns over malpractice by certain institutions carrying out the process.

Responding to a question raised by MP Lal Premanath, the Minister admitted that some organisations had engaged in fraudulent practices to pass vehicles during testing. However, he assured that by the end of 2026, existing agreements with emission testing companies will expire, and new agreements will be signed under stricter regulations to prevent future irregularities.

Rathnayake highlighted that air quality levels have significantly declined in several cities, including Colombo and Kandy, largely due to vehicle emissions. He stressed that the failure to modernise public transport has worsened the problem, but argued that funding and initiatives for emission testing cannot be considered wrong.

The Minister added that the introduction of electric vehicles (EVs) would substantially reduce vehicular emissions and help improve air quality in major cities. He also noted that the Government has already begun conducting random emission tests while continuously monitoring air quality levels.

Addressing another concern, Rathnayake explained that emissions are particularly high at traffic signal lights due to the absence of countdown timers, which cause motorists to accelerate unnecessarily while waiting. He said that timers have now been installed at several traffic lights in Colombo using government funds to help mitigate this problem.