1. Group 04

3. Group Members
SAJITHA ADIKARI HD-UGC- 102002
LALINDRA DE SILVA HD-UGC- 102016
NISAL DHARMADASA HD-UGC- 102021
AYESHA FERNANDO HD-UGC- 102027
SACHINI PERERA HD-UGC- 102067
SEWMINI HD-UGC- 102070
RATNAYAKA

4.  Macro Environment Of Film Industry in Sri
Lanka
The major external and uncontrollable factors that influence an organization‟s
decision making, and affect its performance and strategies. A PESTEL Analysis
is undertaken to understand the dynamics of the external environment which the
film industry operates in. These factors include the Political ,Economic, Socio-
Cultural, Technological, Ecological and Legal environment.

5. P olitical
Environment
L egal E conomical
Environment
Environment
E cological S ocio Cultural
Environment
Environment
T echnological
Environment

6.  Sri Lankan Film Industry was established in 1947 with “ Kadawnu
Poronduwa” produced by S.M. Navagam of Chira Kala move tone.
 The pioneer director Lester James Peris was the first Sinhala film director
who shot his first film completely out of the studio “Rekava” in 1956
 During the 1970 several valuable films came to the film industry, such as
Gamperaliya, Nidhanaya, Gaga addara, Prasathumal and Kaliugaya.
 In the recent years, the film producers such as Wasantha
Obesekara, Darmasena Pathiraja, Tissa Abesekara, Prasanna Vithanage
and Asoka Hadagama were become the leader in the film industry
 Today, film industry produced by classical films and commercial films.
 Most of the Sri Lankan films were participated by International film
festival and won the more awards.

7.  The Political environment consists of laws, government agencies and
pressure groups that influence or limit various organizations and
individuals in a given society. Marketers must keenly follow the
changing sociopolitical environment of the world in order to seek out
opportunities and to address potential threats.
 Political stability is one of the fundamental aspects for any industry‟s
success and growth.
 With the end of terrorism in Sri Lanka, the North and East areas
opened up. The government should take action to build cinema halls to
help develop the industry for the Tamil community. This is a new
audience which Sri Lankan Tamil directors can make films for.
Thus, the government should take initiative to develop the industry in
the North.
 With the positive economic growth (8%) in the country there is clear
potential for the film industry to grow and prosper. But, it is hard to
achieve its potential without funding and support from the political
arena.

8.  Sri Lanka has many undiscovered beautiful locations
and these can be marketed for foreign productions.
 It is also advantageous for foreign films to shoot in Sri
Lanka because it is less costly. However, if Sri Lanka
intends to earn an income and learn through foreign
productions, it is the government‟s responsibility to see
that Sri Lanka maintains a good global reputation by
maintaining a stabilized political environment.

9.  Politics should not interfere with the screening
of films. For example, some movies which are
done by people related to politics screen their
films without giving consideration to the
lineup of films.
 The treats are minimal as long as keep
everyone satisfied.

10. The totality of economic factors, such as employment, income, inflation, interest
rate, productivity, and wealth, that influence the buying behavior of consumers and
institutions.
Latest changes in Economic Environment of Sri Lankan Film industry
 Sri Lankan government got more benefits by the IIFA film festival
 Attracting more foreigners
 Increased amount of foreign exchange
 Starting new business
 To develop their business relationship and friendship
 To improve the infrastructure in Colombo city
 To get more investment opportunities in Sri Lanka film industry
 The Sri Lankan enterprises can be take our cinema to international heights and that
is why the President has formulated tax benefits to elevate the national cinema to
enter into the global film market.

11.  lack of finances for producing films
 National Film Corporation did not support the film directors
continually.
 To destroyed many theaters during the war.
 No restored print film center in Sri Lanka.
 Most local films were not recognize the internationally.
 Most of film directors are using foreign actors their films.
 To paid large advertising expenses.
 No film academy establish in Sri Lanka.

12. The Cultural environment is made up of institutions and other forces that affect a
society‟s basic values, perceptions, preferences, and behaviors.
Socio-Cultural environment based on 3 components. Those are :
 Social Environment
 Cultural Environment
 Demographic Environment
The culture of Sri Lanka dates back over 2500 years. It is influenced primarily by
Buddhism and Hinduism. According to Islamic folklore, Adam and Eve were
offered refuge on the island as solace for their expulsion from the Garden of
Eden. The island is the home to two main traditional cultures: the Sinhalese
(centered in the ancient cities of Kandy and Anuradhapura) and the Tamil
(cantered in the city of Jaffna).

13.  Increasing film halls in Sri Lanka.
 Increasing demand for elders only films and family films
 Most of the films target Sri Lankan younger generation.
 To issuing different price of tickets on people‟s income.
 To developing most of the facilities in film hall
 To making various type of films.
 Cultural change in third generation.
 Review of the darkest periods in the contemporary history of Sri Lanka .
 ethnic war, which has been around for decades.
 Increasing ageing population
 Lifestyles are modern and fast paced.
 Increase number of higher education institutes.
 Increased Tamil population
 Tourism has taken a sharp rise in the country.
 Women are employed more than ever.
 The young generation gives priority to work, and marriage is postponed.
 Many Sri Lankans are migrating back to Sri Lanka.

14. The demographic factors of the market in which an
organization operates , and which are used to segment the
target population for effective marketing.
Demographic bases of market segmentation
 Age structure
 Gender
 Income
 Family size & Family life cycle
 Occupation
 Education
 Social class
 Region and Race
 Nationality

15.  Modernization were presented in culture specific terms, often very crudely.
 Ideas of socialism, youth unrest, problems of unemployment, alienation of
youth, which were all inevitable concomitants of the modernization
process, found cultural expression.
 The ferocity of the ethnic conflict and its impact on, and implications
for, the state, civil society, rule of law and soon began to be explored in
terms of the vocabulary of local culture.
 Most Sri Lankan people move to the watch foreign films
 Not increasing the Tamil Film Industry in Sri Lanka
 The high increase of mega Tele-dramas.

16.  External factors in technology that impact business
operations. Changes in technology affect how a company
will do business. A business may have to dramatically
change their operating strategy as a result of changes in the
technological environment.
 New technology creates new markets and opportunities.
However, every new technology replaces an older
technology. As an example, CDs hurt phonograph
records, and digital photography hurt the film business.

17. •DigitalCinema -The age of 'filmless film' has arrived.
•Sri Lankan movie industry take the cue from India
•Using 3D Technology
•Trends in technology of format and Film
Stock, Cameras and Lenses, Lighting, Sound, Editing
and Visual Effects, Cameras, Audio
•To using most effective Lighting, Sound, Editing
and Visual effects.
Eg: Abba film

18. •Most of Sri Lankan Films were not exposed internationally.
•Coming up bad copies to the market.
•digital cinema at home at near-identical resolution
•There are movies on demand over cable TV, compressed digital
films, and DVDs in the mail.
•The lack of facilities and technology
•There are movies on demand over cable TV,
compressed digital films,
and DVDs in the mail.

19. The natural Environment involves climate, weather and the
natural resources that affected by marketing activities and
economic activities. Sri Lanka offers wide variety of
locations, the cultural heritage the diverse people and the
scenic beauty, draws Film makers to shoot in Sri Lanka and
above all the Sri Lankan Hospitality.
Naturalists say Sri Lanka is one of the easiest places in the
world to spot whales because whales come very close to the
shore.

20. Movie makers eye Sri Lankan locations Highlights
•To using wild screen for their films
•Foreign films used many Sri Lankan film
•location
Eg: Water Film, Mother Theresa

21. Sri Lanka has many natural locations:
Natural beaches
Water falls
Mountains & plains
Rural village
Rivers
Wild life
Sky scrapers

22.  Sri Lankan film producers used natural locations
Eg: Sooriya Arana Film
 International production companies like to using Sri
Lankan location such as natural beaches rural
villages rivers and wild life.
As a result Sri Lankan can earn more profits
and income for these films

23.  Movie makers do not care about natural
environment
 Every production impacts of the environment.
As an example: When foreign
(Bollywood and Hollywood) Movie
producers use high technology to their
productions, so it‟s harm to our natural
environment.

24. In recent years in Sri Lanka there have been many
significant legal changes that have affected the industry‟s
behavior. The introduction of age discrimination and
disability discrimination legislation and an increase in the
minimum wage are examples of relatively recent laws that
affect an industry's actions.
Screening of movies has to obtain prior permission from
the board of control for screening in movies of Sri Lanka.

25. Latest Changes
•Minister given powers to intervene and stop screening.
Opportunities
•High standard good quality productions done ethically.
•A solid legal environment ensures that the industry is
stable.
•Consequently, a sound legal system reflects
professionalism in the industry.
•To silence certain unbiased accusations.

26. •Some films are not allowed to shown in the Sri
Lanka because they do not pass through the
censorship test.
•These incidences harm the credibility and stability of
the industry.
 Privacy policy
Taking legal action because of copy right
issues
Actors not paid and filing cases against
producers and directors.
Terms and conditions not stated properly.

27. Product
The „product‟ here is the films. The Film Cooperation with the government
should take care to see that directors, producers are given necessary funding and
encouragement to produce/direct quality films.
Price
Marketers should price the tickets
according to demographic
areas the film halls are situated in and according to
the facilities of the cinema hall.

28.  Place
The cinema halls (place) are extremely
important to the industry because this is where
the films (product) are delivered to the
audience.
 Promotion
Promotion or the ways of communication to the
target market is crucial if the producers want to
get back a profit.

29. A Pestle Analysis is undertaken to understand the
dynamics of the External Environment, which the Film
Industry operates in. While these factors are out of the
industry‟s control, the industry needs to be aware of them
to adapt it self to avoid the Threats and exploit the
Opportunities in the environment.

30. The The external environment Impact on the industry
Environment
The political environment is A stabilized political system is good
considerably stabilized . news for all.
Government imposes tough As a result, the cost cannot be covered.
rules and regulations and
Political
charge 48% off the films
Environment
income.
The opening up of North and In the film industry there are ore
East areas. confident of planning long term
strategies. The opening of North &
East has given the film industry the
attractive opportunity of conquering
that virgin market and of stabilizing
their industry position through out
the island.
It’s the Government’s Foreign exchange coming in to the
responsibility to maintain a country.
good global reputation for
foreign productions.

31. A lot of development projects The development projects taking place
are going on across the country. throughout most rural areas have been
creating a steady flow of money in the
usually laid back markets. There is plenty
of opportunity for the film industry to
strengthen their profits by concentrating
on marketing campaigns in these areas.
Economical Lower interest rates have lured The lucrative economy (bull market)
Environment international players to the prevailing in Sri Lanka has been luring
market investors. This poses threats as well as
opportunities to the film industry as more
financially stronger companies enter and
compete for a share of the film industry.
Crisis period has not yet settled Price hikes results in resource constraints
down. for the film industry as the camera is the
main tool
Opportunities came with IIFA IIFA would give many economic benefits
directly as well as indirectly

32. Women are employed more Research shows women act more than men do,
than ever. thus the trend of working women is positive for
the industry.
Increasing ageing population. -film industry has the opportunity to venture
into new Segments and fill up a gap in the
market for the elderly population.
Socio-cultural and Lifestyles are modern and fast Demand for short films is on the rise as a result
Demographic paced of modern day lifestyles
Environment
Tourism has taken a sharp rise. The tourist boom can be made handy to market
made in Sri Lank a productions to the
international arena.
The young generation gives - A population with a new taste palette too is on
priority to work, and marriage the rise, giving the film industry a reason to
is postponed widen their production portfolio.

33. Investors have been introducing The continuous introduction of modern
latest technology into Sri Lanka technology in the industry facilitates the
during the last few months. film’s to keep a breast with the international
film’s
Technology is being obsolete at Trends and operations.
a mind-blowing rate.
There seems to be almost The film industry owes it for technology
Technological for their undisputed standards of quality
Environment unlimited opportunities being
and productions.
developed daily. Consider the
expanding fields of health care,
the space shuttle, robotics, and
biogenetic industries.
New technology creates new However, every new technology replaces an
markets older technology. As an example, CDs hurt
and opportunities. phonograph records, and digital
photography hurt the film
Coming up bad copies to the Unfortunately, the SIFF screenings were in
market BETA format and were very bad copies.
They have not a single reprint of a film. In
addition, locals are ignored and lose
opportunities

34. - Concern for the protection of Environmental standard certificates are required
environment has been on the rise. when exporting films for foreign countries.
(Environmental Management
Systems (EMS))
Floods have disrupted daily life in The demand for films can both increase and
few parts of the country. decrease during times of crises. Relief support
groups tends to produce films for a cause to fund
the flood victims. And when victims are unable to
Ecological go and watch a film clearly, the demand in the area
Environment significantly goes down
Low cost budget when shooting As a result local locations are exposed and Sri
a film in local locations Lank a’s natural beauty has got lots of accolades
and awards
major opportunity of wild screen knowledge and a whole lot of benefits come in to
come to here. the local scene and to the boom and betterment of
the film industry in Sri Lanka
movie makers don’t care about This is a high impact industry where there is a
the environment. perception that filmmakers do not care about the
environment
every production impacts on the In the studio and on location, work consumes
environment large amounts of energy and natural resources.
They generate waste and sound pollution.

35. Legal factors have an effect on both
- Environmental regulations for
production and employment operations.
filming.
Systems have to be either altered or even
created to meet the regulatory demands
and the film industry would have to bear a
considerable cost if changing the usual way
of
Legal
Disability Discrimination The demand for quality standards gives
Environment Legislation. only a few productions a competitive
advantage as they already adhere to
most highest standards.
Film Act of Sri Lanka Certain certificates have to be obtained
when exporting films.
High standard good quality International recognition can be gained by
productions done ethically through high quality productions done in
the highest possible way.
Good productions come out Establishing a solid legal entity to look into
as a result of a strong legal
background within the matters in the film industry.
industry

36. Well conceived regulation can encourage
completion and ensure fair productions ,thus
To prevent petitions Or motions.
governments develop public policy to guide
commerce sets of laws and regulations that
limit business or production to the of society
as a whole.
Copyright and Intellectual The producer will be very conscious and
Property: In order to secure organized with regard to intellectual
meaningful distribution for a property.
Legal film, a producer must be able to
Environment prove that he or she owns, or
has a license to use, EVERY
piece of intellectual property in
the film.
Original productions are when there is a solid legal foundation and
preserved. background, more people are willing to help
and get involved with the industry.
To prevent from certain people Written regulations can not possibly cover all
using the law unnecessary to potential production or marketing of films,
sabotage the movie. beyond written laws and regulations, films are
also governed by social codes and rules of
To Silence unbiased accusations.
professional ethics.

37. Considering the above PESTLE analysis, it is safe to say that the current situation
of the External Environment is favorable to the film industry.
But, all these positive factors (stabilized political situation, potential of the
economy, advances in technology and the expansion of customer base) reflects that
competitors too will be lured to do commercial productions.
Although the film industry is faced with opportunities to exploit, pressures from
competitors will be inevitable.
In Conclusion we have discuss the key Macro Environmental Factors, the
Definions,Sri Lankan Context, the Opportunity‟s and Threats of the SWOT Analysis
which are the External Factors, the Marketing Mix and their implications in the film
Industry.
There‟s a Compact Disk that we have attached with the report for further reference
which depicts the 64 year old Sri Lankan Film Industry‟s History , the Macro
Environment and an Exclusive video interview with the Leading film director Mr.
Udayakantha Warnasuriya.
There would be an In-Depth Analysis on the film industry in our Report.

38. ?
Have Any Questions