Amid severe financial strain, the government has decided to float a tender to lease the loss-making ‘Channel Eye,’ owned by the State-owned Sri Lanka Rupavahini Corporation (SLRC) on long-term basis to broadcast sports and entertainment programmes while the airtime of the channel is currently leased to Lyca Group on short-term basis.
Cabinet Spokesperson and Minister of Mass Media Bandula Gunawardena clarified that Channel Eye has been leased to Lyca Group on short-term basis based on a decision made by the Board of Directors, as the government is unable to fund the loss-making channel.
Although, Minister Gunawardena submitted a Cabinet paper seeking approval for this decision, the Cabinet of Ministers had informed him that a Cabinet approval is not required as it is an effort to keep the channel in operation without burdening State coffers.
Gunawardena said the airtime of Channel Eye is leased to Lyca Group for Rs.25 million to broadcast sports programmes while SLRC has the rights to revoke the lease agreement with one month notice.
He pointed out that Channel Eye’s daily broadcasting time period was cut down to 4-5 hours due to financial constraints in particular relating to electricity costs. Hence, the only option was to lease the Channel and Lyca Group came forward as the only party to operate the channel on a short-term lease basis.
Gunawardena noted that a proposal to float a tender to lease Channel Eye on a long-term basis would be approved at the next board meeting, with a minimum floor lease amount of Rs.25 million a month.
(Daily Mirror)
