• Private higher education institutions enrol thousands of students each year with little regulatory oversight
• Many diploma/certificate-awarding institutions are outside regulatory oversight
• Regulator bodies lack centralised databases to perform oversight or check compliance of private institutions

With private higher education institutions expanding rapidly and growing their enrolment numbers annually due to the gap created by limited State university capacity, questions persist about regulation and oversight mechanisms.

Sri Lanka’s State university system admits only a fraction of those who qualify for higher education. Only a portion of students are able to secure admission based on the local General Certificate of Education Examination – Advanced Level (GCE A/L) due to limited space. The country’s higher education system has not been able to expand at a pace that matches the growing demand and rising aspirations of young people seeking higher studies.  

There are more Government-approved private universities than public universities. Showcasing the tough competition for available State university seats, for the 2023/’24 academic year, of the 173,444 candidates eligible for university entrance, only 26% secured university admission to State universities.

In 2024, of 274,361 candidates who sat for the GCE A/Levels, only 177,588 (64.73%) were eligible to enter State universities, while 27,692 students graduated from State universities and higher education institutes. Meanwhile, there were 191,696 undergraduates across State universities, other higher education institutes established under the Universities Act, and the Open University in 2024.

As such, access to free public higher education remains highly competitive, a gap that has allowed private higher education to expand.

Private sector: Scale and scope

According to the Ministry of Education, Higher Education, and Vocational Education website, there are 32 recognised non-State higher education degree-awarding institutes and degree programmes operating in Sri Lanka. In comparison, there are 17 State universities and 19 higher education institutes established under the Universities Act. 

Data from the National Human Resources Development Council of Sri Lanka’s 2025 report on ‘Students Enrolment and Graduation Details for Non-State Universities and Higher Education Institutes for 2023/2024’ shows the scale of enrolment at major private providers. 

The Sri Lanka Institute of Information Technology (SLIIT) is the largest private higher education provider with 17,578 students enrolled. The other prominent providers are Kaatsu Highly Advanced Medical Technology Training Centre/KIU Campus with 5,402 students, Sri Lanka Technology Campus (SLTC) with 4,347 students, National School of Business Management (NSBM) with 5,656 students, CINEC Campus with 2,917 students, Horizon College of Business and Technology with 2,438 students, and the Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka) with 2,226 students. 

Together, these institutions enrolled 46,335 students in a single academic year. 

Moreover, a British Council analysis notes that there are private sector institutions without degree-awarding power that operate through affiliation to other universities, without requiring Government approval. Between all types of non-State higher education institutes, they have the capacity to enrol around 42% more A/L-qualified students annually than the number admitted to State universities.

Regulatory grey areas

Despite its scale, the private higher education sector operates within an uncertain regulatory backdrop. 

While the University Grants Commission (UGC) has oversight of institutions registered under the Universities Act, it does not regulate private universities. The UGC, however, recognises foreign universities/higher educational institutes based on international acceptance, with those listed in the Commonwealth Universities Yearbook and the International Handbook of Universities being recognised at present. 

According to Ministry of Education Secretary Nalaka Kaluwewe, policies in relation to private higher education are prepared by the National Education Commission (NEC).  

NEC Chairman Prof. Sarath Ananda, speaking to The Sunday Morning, acknowledged that past attempts to regulate private higher education institutes had not progressed. 

“On several occasions, there have been attempts by the Government to regulate private universities. There is evidence – letters and documents – showing that certain groups initiated such attempts even before I assumed office. However, there is no indication that these initiatives were carried forward,” he said.

He noted, however, that the NEC had undertaken its own research and compiled a commission paper in this regard, which would serve as the basis for future policy decisions. “As the NEC, our position is that any institution operating in the field of education within Sri Lanka must be monitored in some form under the Ministry of Education. We are taking steps in that direction and the NEC intends to act in this regard in future.” 

Addressing the mechanisms in place to monitor academic quality, faculty standards, and curricula in private universities, Prof. Ananda noted that while a certain level of oversight existed for a limited number of institutions that fell under the purview of the Ministry of Education, a much larger number of diploma- and degree-awarding institutions operated outside this monitoring framework. 

“There is no specific place through which we can obtain data on these institutions. The biggest challenge is that many of these private higher education providers do not function as educational institutions; they have been registered as business enterprises. Therefore, they cannot be easily identified as higher education institutions, since they exist as companies.” 

He stressed the need for a process to identify these institutions and examine their policies, student enrolment numbers, academic staff structure, curricula, fees, etc. 

While acknowledging that several private institutions appeared to be functioning responsibly, Prof. Ananda noted that the NEC regularly received complaints from students and parents regarding some institutions. “The NEC receives numerous letters of complaint alleging issues such as unjust fees and failure to award degrees or diplomas, although we lack a mechanism to act on these complaints. Often, these letters are also the only source through which we become aware of such problems.” 

He noted that although the NEC already had certain limited powers to intervene, there was no dedicated organisation tasked with regulating private higher education. “Our stance is that such a mechanism must be formulated,” he said, noting that it would require a considerable amount of resources for the purpose, which the NEC alone could not provide at present. 

Last November, the Sectoral Oversight Committee on Education discussed the need to establish a higher education commission to regulate and monitor private universities and other degree-awarding institutions. 

With the Committee Chair highlighting the emergence of institutions awarding degrees of inadequate quality and the resulting harm caused, they also stressed the importance of ensuring that the entire process, from student admission to awarding of degrees, remained under the supervision of the UGC.

At the discussion, the Vice Chair of the UGC, too, underscored the need to establish a higher education commission to regulate and monitor private universities and other degree-awarding institutions.  

Balancing access and affordability 

Meanwhile, Open University of Sri Lanka Faculty of Education Department of Secondary and Tertiary Education Professor of Sociology of Education J.D. Careemdeen emphasised the importance of having alternatives to address limited State capacity. 

“Sri Lanka only has a limited number of State universities and relatively few private universities. Given that students have few opportunities for admission to State universities, they must have a chance to pursue higher education,” he said. 

According to Prof. Careemdeen, private institutions offer several practical advantages. For instance, one attraction is the availability of diverse degree options and opportunities to study overseas through foreign-affiliated programmes, alongside modern facilities. 

“In State universities, students’ Z-scores determine the stream they can enter. However, private universities allow students to choose their preferred field of study, provided they can afford it.” Moreover, he noted that another factor was that private universities generally started and completed their academic programmes on time, being less affected by disruptions such as strikes, unlike State universities. 

However, Prof. Careemdeen acknowledged that affordability remained a concern, noting: “The main challenge is that private higher education is only accessible for wealthier students. In State universities, education is free, and students may receive Mahapola scholarships or bursaries. In private institutions, however, students have to pay high tuition fees, as well as cover things like accommodation.” 

He also cautioned that in the case of some foreign-affiliated programmes, degree verification could be complex, since even if a programme is approved locally, students may need additional verification from relevant foreign authorities to confirm the authenticity of their qualification. 

A national imperative

Despite such concerns, Prof. Careemdeen argued that strengthening private higher education in a domestic context was also economically necessary, given that Sri Lankan students paying for foreign universities had an economic impact on the country. He added that expanding the sector could also attract international students, which would generate foreign exchange and contribute positively to the economy. 

Ultimately, he stressed that the growth of the sector was essential for national development, noting that there needed to be science, technology, and engineering higher education pathways and institutions. 

“The university system produces the country’s human capital that contributes to its economic development. As such, it is not sufficient to have only a small number of university students. Countries like the US and China have hundreds of universities, and their development is linked to the role played by their universities,” he said.