Friday Oct 23, 2026
Friday Oct 23, 2026
Friday, 23 October 2026 05:10 - - {{hitsCtrl.values.hits}}
PVR Inox CEO of the Luxury Collection and Innovation and PVR Lanka Director Renaud Palliere - Pic by Lasantha Kumara
By Charumini de Silva
India’s cinema giant, PVR Inox is stepping up its expansion plans in Sri Lanka, with Jaffna emerging as its likely next location and a high single-digit number of cinema properties targeted over the next three to five years, as it seeks to tap demand beyond Colombo.
The company, which has operated in Sri Lanka for six years, is exploring opportunities in the South, Greater Colombo, Kandy and other regions, with expansion expected to combine direct investments with asset-light and franchise models involving local investors and property developers.
“Sri Lanka had become a priority for expansion following the performance of its existing operation,” PVR Inox CEO of the Luxury Collection and Innovation and PVR Lanka Director Renaud Palliere told the Daily FT.
“We feel it is absolutely time to expand the brand and give other communities and catchments in Sri Lanka the PVR experience,” he said.
Palliere said Jaffna was the most likely next destination, noting the strong response to Tamil films among audiences travelling from the northern city. The company is looking at a short-term timeline of around four months, although the investment value and final arrangements have yet to be disclosed.
Unlike its nine-screen flagship complex at One Galle Face mall, future locations are expected to feature four or five screens, with a mix of auditorium formats and seating options, including premium large-format experiences.
He said the company is also open to partnerships with local investors and real estate developers, allowing the PVR brand to be introduced into existing or planned properties without requiring the group to own every asset.
Palliere said the company’s initial investment of $ 7 million was expected to be fully recovered by the end of the current financial year or the beginning of the next, after accounting for nearly two years of closure during the COVID-19 pandemic.
Subsequent investment in upgrading the cinema experience, including the introduction of Dolby Atmos, was smaller and recovered within months, he said.
“We realised there is demand and keen interest in cinema-going in this market at a different price point, as long as the experience is differentiated,” he stressed.
Palliere added that the size of Sri Lanka’s market relative to India did not undermine its growth potential, pointing to untapped geographical markets and the company’s ability to meet its performance targets.
Noting that PVR is still at an early stage of securing local financial partners, Palliere said there was already interest. “The company sees opportunities to increase the value and rental yields of commercial properties by incorporating branded cinema facilities,” he added.
He said the group is not currently considering acquisitions of other cinema operators in Sri Lanka, as organic expansion through partnerships and franchise arrangements remaining the priority.
The expansion strategy will also be shaped by the availability of suitable retail and entertainment developments. Palliere cited the possibility of a larger complex in Galle and Kandy, while stressing that the nine-screen Colombo property was an exception rather than the template for every new location.
Palliere said Tamil and Hollywood films remained among the strongest audience draws in Sri Lanka, followed by Hindi films, while Sinhala films were attracting increasing box-office attention.
Although PVR does not intend to finance or produce films in Sri Lanka or India, he said stronger box-office performance by local productions could help attract funding and improve recognition of the industry’s output.
He also welcomed the competition as a positive sign for the market. “There is one competitor clearly picking up properties and expanding, which validates our thesis that there is an opportunity in this market,” he said, adding that a market where customers have choice keeps everybody on their toes and pushes to improve their offering.
He described the competitive environment as healthy, noting that the two companies also worked together in film distribution.
Palliere cited occupancy of around 40% as evidence of continued audience demand, while emphasising the appeal of watching films on a large screen.
PVR Lanka currently participates in the Shangri-La ecosystem’s loyalty program and does not yet operate a standalone national program. However, Palliere said credit card offers and other initiatives were being processed, with broader partnerships likely to become more relevant as the company expands beyond a single property.
The planned expansion, he said, would allow PVR to build a wider customer base and develop loyalty initiatives suited to a multi-location operation.
He also said they hope to bring South Indian actors down for future movie premieres, believing their presence will draw massive crowds to theaters.
