Background of the Sri Lankan Cinema and subject to its effect of Spectatorship, resulted in constant progress with as a medium of art and parallel potential to unsuccessful as an Industry of Cinema. Lokuliyana Aruna De Silva, Senior Lecturer 1,Department of Mass Communication, Faculty of Social Sciences, University of Kelaniya, Sri Lanka. Abstract The film “Kadawunu Poronduwa” (Broken Promise) marks the beginning of Sri Lankan Cinema in 1947, which was influenced by the South Indian films and with ability of its technology and industrial practice. Based on personal entrepreneurship along with language norms of “Minarva” stage dramas, elements of South Indian Film genre, this cinema build up new medium of entertainment spectra in Sri Lanka. The European cinema influence absorbed to Sri Lanka through documentary films of Government Film Unit and this era Sri Lanka Cinema was building up as an economically success entrepreneurship. Classical elements of European Cinema chronically flows in to Local Cinema with the arrival of “Rekawa” in 1956, acclaiming international renown to Local classical Cinema. Sri Lankan Cinema gradually developed in 50-60 th decades up to as an Industry record its height point in the 70 th decade including classical film aspects as well. But in the 80 – 90 th decade this quality was happened to change, keeping the Classical film stream up although was collapsing as an industry wise the cinema. Why Sri Lankan Cinema is progressing qualitatively although it collapsed quantitatively? What are the Social, Political, Economic and Cultural facts with regards to above state in Sri Lankan Cinema? What are the reasons to detach Spectators from Cinema although there is a development in Classical background? The Purpose of this research paper is Scientifically Annalise on above questions through field research study based on a sample of one thousand Sri Lankan Cinema Spectators selected in scientific random sample method representing all Island, using a questioner in order to collect data. Key Words: Spectatorship, Entrepreneurship, Genre, Classical Cinema.