Rising costs, taxes threaten Sri Lanka’s event Industry: Festival, concert organizers

By T.K.G. Kapila

Colombo, May 21 (Daily Mirror) - Festival and concert organisers from across Sri Lanka raised alarm over a series of escalating challenges currently affecting the industry, citing increased operational costs and regulatory inconsistencies as major obstacles to their survival.

The concerns were brought to light during a media briefing organised by the Joint Association of Sri Lanka Concert, Festival Organisers and Coordinators, held at the Aradhana Hotel in Katunayake on Monday (20).

Association Media Secretary Sidesh Rangana, speaking to the media, expressed deep concern over the recent increase in police allowances mandated for officers deployed at public entertainment events. According to a government circular issued in March, the daily 'Bata' allowance for police personnel assigned for concerts and festivals has seen a significant hike with the allowance for a police constable rising from Rs. 950 to Rs. 4,500.

The revised rates now stand at:

• Police Constable: Rs. 4,500
• Police Sergeant: Rs. 4,850
• Sub-Inspector: Rs. 5,250
• Police Inspector: Rs. 5,625
• Chief Inspector: Rs. 5,750

As per standard deployment requirements, a one-day concert typically necessitates the services of 25 police constables, five sergeants, a sub-inspector, an inspector and a chief inspector. 

Rangana highlighted that under the new rates, the cost of police allowances alone would amount to Rs. 175,000 per event, and for a 5-day festival, it would soar to nearly Rs. 1 million.

“This is an unbearable burden for grassroots-level organisers like us who strive to bring happiness to ordinary people at an affordable ticket price of Rs. 300,” Rangana lamented. 

“This ticket revenue must cover all expenses, from performer fees and logistics to venue charges and now, these steep police allowances.”

Adding to the financial strain, organisers pointed out that entertainment tax rates vary widely across Provincial Councils, ranging from 7.5% to 25% of the ticket sales. 

Rangana urged the government to standardise these taxes nationwide to create a fair and sustainable environment for the industry.

Organisers also criticised the uneven rental fees for playgrounds and venues charged by provincial authorities, pointing out that while prices differ from region to region, the majority of these venues still lack even the most basic facilities required for hosting public events.

The association called on the government to urgently address these issues, warning that unless swift and fair policy adjustments are made, Sri Lanka's concert and festival scene which serves as an affordable form of entertainment for many could face significant setbacks.