Film industry pushes for end to outdated import quotas amid resurgence in cinema attendance

Current NFC rules cap imports at 65 English, 25 Hindi, 70 Tamil and 25 other-language films, leaving cinemas short of content while streaming platforms surge Industry leaders highlight 2025's record box office revenue reaching Rs. 1.5 b in 1H, with multiple Sinhala films crossing Rs. 200 m, proving local cinema is thriving without protectionist quotas Stakeholders warn Rs. 10 b invested in IMAX, 4K multiplexes and new theatres over seven years could be wasted if quotas persist Call for tax incentives and policy reforms to boost production, technology and global collaborations, positioning Sri Lanka as competitive film hub

- BY CHARUMINI DE SILVA

FILM importers and exhibitors are ramping up pressure for sweeping reforms, warning that decades-old restrictions imposed by the National Film Corporation (NFC) are crippling the Rs. 10 billion industry.

Industry leaders opined rigid annual quotas, capped at just 65 English films, 25 Hindi, 70 Tamil, and 25 other-language, such as Japanese, were introduced over 25 years ago to safeguard the local industry, but have since become a major bottleneck.

In an age of digital cinema and multiplexes, industry champions assert these limits fail to meet audience demand, despite over Rs. 10 billion being invested in upgrading theatres in the past seven years.

They also said the average occupancy revenue rose from Rs.7 million in 2024 to over Rs. 1.5 billion in just the first half of 2025, driven by successful Sinhala film releases, and is hopeful of ending the year with over Rs.

3.5 billion. However, industry stakeholders cautioned that without regulatory reform, growth potential will be stifled.

"Outdated regulations under the NFC Act continue to hold back Sri Lanka's cinema industry," Film Exhibitors Association President Anuradha B. Rekawa told the Daily FT.

"One glaring example is the outdated film quota system, unchanged for over 25 years. This restricts the flow of new content into cinemas, leaving exhibitors at a disadvantage, particularly against the rapid rise of streaming platforms," he explained.