NFC directed to steer the local cinema industry revival

The National Film Corporation (NFC) has been directed to steer the local cinema industry towards a revival in collaboration with all leading movie industry stakeholders by preparing a short term action plan for 2021-2022.

This directive was issued by the Chairman of the Committee on Public Enterprises (COPE) Prof. Charitha Herath at a COPE meeting held recently.

The NFC has to take prompt measures and streamline business operations to resurrect the industry from its present setback, he said.

Local film productions have been shelved or indefinitely postponed during the COVID-19 third wave period, while many cinemas have shut down, triggering job losses countrywide, he added.

The corporation has so far not taken any action to facilitate film hall owners, importers, distributors and other stakeholders to resume the screening of films following the reopening of movie theaters with 50 percent seating capacity, several theatre owners revealed.

As an immediate remedial measure, industry stakeholders including, Liberty Cinemas, EAP Films, Cinema Entertainment Ltd (CEL), Movie Producers and Importers (Pvt) Ltd have suggested, in a proposal to the government, a private sector business model where it is fully liberalised.

The NFC should only serve the industry as a regulator moving away from the operating circuit and shelve its additional role as a film distributor and film hall owner as its bureaucratic management has prevented the development of the industry for over three decades, the proposal said.

Since 2000 the corporation did not assist the digitalisation process of local cinema due to the intervention of film committee members and certain advisors who had no long term interest in the industry, it was pointed out.

Prof. Herath said he has directed the corporation to implement proper standards in the process of digitising cinemas as several issues have cropped up due to ad hoc systems.

In the meantime the Treasury has to provide funds to maintain the NFC monopoly in the industry and the state-owned entity has failed to properly utilise finances allocated for certain projects from the consolidated fund, Treasury sources said.

COPE has directed the corporation to expedite the construction work of the museum and a film school named after Dr. Lester James Peries which commenced on April 5, 2019 at an estimated cost of around Rs. 100 million.

Although the Treasury has allocated Rs. 25 million for the improvement of the production facilities of the university Studio in Kelaniya and another Rs. 50 million for the establishment of a film archive and restoration of films, the amount had not been utilised during the year under review, COPE has found.

COPE also found that out of the

Rs. 50 million allocated for the establishment of a National Training School, only Rs. 500,000 was spent.

The NFC is currently running at a massive loss due to its inefficient operation and its lack of knowledge of the competition, Treasury sources said.

Cinema halls and multiplexes have now been allowed to operate with 50 per cent capacity under strict health guidelines as producers are waiting to release their movies attracting film goers back to big screens.

This industry is expected to show recovery and growth slowly with over 200 screens back in operation and several new cinemas are being built by various investors including some of the largest cinema chains in India, several movie importers said.

The leading business entities in the film industry plans to build modern cinema halls introducing the modern movie experience in rural areas while promoting internationally and locally produced films countrywide, they disclosed.

Multiplexes are to be built in areas like Kandy, Moratuwa, Mount Lavinia and Galle; they said adding that a request has been made from the Government to provide suitable lands at easy payment schemes.

As the NFC was the sole distributer of films no good content was provided to cinemas resulting in patrons moving away from a film-going culture that was once very vibrant in the country, they said.