Sri Lanka’s Cinema Exhibitors Warn of Crisis Over Allegedly Unlicensed Film Screening Rooms

Speaking at a media briefing on October 27, association chairman Anuradha B. Rakawa said cinema operators were struggling as films shown in licensed theatres were also being screened in private rooms, creating significant challenges for the industry.

He alleged that these screening venues were operating without paying the taxes applicable to conventional cinemas, placing licensed operators at a disadvantage.

“We operate our cinemas in accordance with the law,” Rakawa said, calling on the relevant authorities to investigate the situation and take appropriate action.

He also said the association had received information that a newly released Tamil film being screened in cinemas was being shown in these private rooms.

Rakawa further expressed concern that some venues advertised as film-screening locations were allegedly being used for other improper activities.

He noted that the legislation governing the National Film Corporation dated back to 1971 and said proposed updates to the legal framework had been delayed. He also urged the government to reduce taxes on cinemas outside Colombo to help ease the financial pressure on operators.

Association Says Screening Rooms Are Not Registered

Association secretary Anura Jayanthu Liyanage said the relevant film authorities had been informed about the private screening rooms.

He claimed that none of the venues in question had been registered with the National Film Corporation and urged the authorities to investigate their operations.

Liyanage said licensed cinemas complied with the regulations introduced in 1971 and were required to pay taxes. According to him, cinema operators paid a tax amounting to 35 per cent, with a portion of the revenue going to the government.

He alleged that the private screening rooms were not contributing tax revenue to the state and called for swift action to address the issue.

Exhibitors Raise Concerns Over Age Restrictions

Association co-secretary Janith Withanage said private film-screening rooms were appearing in towns across Sri Lanka, raising concerns among established cinema operators.

He expressed concern that films were being shown in these venues without adequate age-based restrictions.

Withanage said licensed cinemas followed rules intended to ensure that children were appropriately supervised when attending screenings. He called on the relevant authorities to stop venues found to be operating unlawfully.

He also argued that the government had a responsibility to investigate the matter, particularly because alleged tax avoidance could result in lost public revenue.

The association called for the authorities to examine the legal status of the screening rooms and take appropriate action where violations are established.