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Sri Lanka’s film industry held back by tax barriers

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Sri Lankan film distributors and producers have raised concerns over irregularities in Value Added Tax (VAT) payments and tax-related barriers to industry growth during a meeting with President Anura Kumara Dissanayake.

Industry representatives told the president that Sri Lanka’s film sector achieved its highest-ever annual revenue in 2025.

They urged the government to maintain support measures that would help sustain the momentum, while addressing what they called inconsistencies in the taxation mechanism affecting cinemas and film distribution.

Minister of Buddhasasana, Religious and Cultural Affairs Hiniduma Sunil Senevi, National Film Corporation Chairperson Sudath Mahaadivulwewa and General Manager Ruwan Premaweera took part in the discussion on behalf of the government.

Veteran actor Sanath Gunathilake joined representatives from major film companies, including Janaki Wijerathna of Lyca Productions, Janith Prasanna Withanage of JP Ceneplex–Kandy, Thushan Ranagana Meemanage of LFD, Ruvindu Gunaratna of EAP, Anura Jasenthuliyana of Lite Cinema, Imthiaz Kader of CEL, Ganga Rathuwithana of Ceylon Theatres and Anushka Egodawatta of PVR.

They stressed the need for a clear, more predictable tax structure to strengthen investment in local cinema and improve long-term industry stability.

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