Privately-owned cinemas want relief; call for clarity from NFC

Whilst welcoming in principle the move by the National Film Corporation (NFC) to grant Rs. 100,000 in relief to cinema owners amid the COVID-19 crisis, the private sector film industry however is concerned on its applicability and called for more clarity.

“It is a good move if it is going to be applicable to all private circuits as well, but the directive is not very clear,” cinemas owners told Daily FT.

On 14 March the Cultural Affairs Ministry requested all cinemas registered with the NFC to suspend screening of films till further notice.

The film industry comprises two main segments which are the main stakeholders — the producer/importer and the exhibitors/multiplex owners/operators which today consists of 200 cinemas/screens islandwide.

The industry comprises five main players who distribute domestic and foreign content, namely, the State-operated Rithma Circuit and the four privately-operated circuits – EAP Movies and Theatres Ltd., Lanka Films and Distributors Ltd., Cinema Entertainment Ltd. and Movie Productions and Importers Ltd. All cinemas in the five circuits are owned by individuals and companies.

Industry sources pointed out that the statement issued by the NFC only referred to a financial grant of Rs. 100,000 to those listed under the Rithma Circuit, which they said was unfair if the Government was providing this relief to the entire industry.

“It is not clear how the Rs. 100,000 grant is given to the stakeholders. If the State is providing it, then all the players in the industry should be considered, otherwise it is very unreasonable,” they said.

The stakeholders also said that they needed an amicable solution on how NFC should play its role as a regulator.

“Being a regulator, NFC should iron out the issues in the industry and regulate, but it is trying to compete instead. During these difficult times, if the Government is granting some relief to the industry, as a regulator it must summon the stakeholders and discuss their concerns and then give it to all instead of considering just one circuit,” they stressed.

They also stressed that from each ticket sold at respective circuits, they pay a levy to the corporation and hence they should consider the entire industry in challenging times like this.