Funding of higher education in Sri Lanka

Prof. Kumar rightly draws attention to the precipitous decline in state funding for higher education in Sri Lanka from 4.25% of GDP in the 1960s to a mere 1.5% in 2022, and the consequential disparities in revenue-raising capacities, with the University of Colombo generating approximately 20% of its budget independently, while regional universities such as the University of Jaffna and Wayamba University operate with less than 2% (Kumar, 2025).

- BY SARATH S KODITHUWAKKU

This fiscal contraction worsens structural inequities and hampers the mission of regional institutions. Ashraf et al. (2012) state that the system resource approach to organisational effectiveness highlights that an institution's ability to secure and use resources is crucial for its success. Without strategic investment and resource redistribution, less-resourced universities will continue to lag behind, perpetuating systemic inequities.

However, in this context, it is important to recognise that looking for alternative revenue sources, like increasing the number of foreign students and forming public-private partnerships, is not just a concession to the market; it is a strategic necessity. These methods can help universities diversify their funding sources, improve their resilience, and lessen their dependence on decreasing public funds. Also, attracting international students and private investment can provide essential resources for infrastructure, faculty development, and research, which supports the broader mission of higher education (British Council, 2024).

Institutional Constraints Over Full Marketisation: The Imperative of Governance Reform

The expectation that public universities transition to full self-funding is neither feasible nor equitable in the absence of substantive governance reforms. Sri Lankan universities remain entangled in rigid administrative frameworks, including protracted approvals for signing MOUs with foreign universities, foreign-funded research and Treasury-mandated procurement protocols, which severely restrict strategic autonomy (Kumar, 2025). The process approach to organisational effectiveness highlights the need for efficient internal operations, trust, and communication as key factors for institutional success (Ashraf et al., 2012). Too much bureaucracy weakens these elements, limiting innovation and responsiveness.