Innovative Strategies in Higher Education for Accelerated Human Resource Development in South Asia: Sri Lanka This publication is part of a series of six country reports on technical and vocational education and training (TVET) and higher education in Bangladesh, Nepal, and Sri Lanka. Each report presents current arrangements and initiatives in the respective country’s skills development strategies. These are complemented by critical analyses to determine key issues, challenges, and opportunities for innovative strategies toward global competitiveness, increased productivity, and inclusive growth. The emphasis is to make skills training more relevant, efficient, and responsive to emerging domestic and international labor markets. The reports were finalized in 2013 under the Australian AID-supported Phase 1 of Subproject 11 (Innovative Strategies for Accelerated Human Resource Development) of Regional Technical Assistance 6337 (Development Partnership Program for South Asia). About the Asian Development Bank ADB’s vision is an Asia and Pacific region free of poverty. Its mission is to help its developing member countries reduce poverty and improve the quality of life of their people. Despite the region’s many successes, it remains home to the majority of the world’s poor. ADB is committed to reducing poverty through inclusive economic growth, environmentally sustainable growth, and regional integration. Based in Manila, ADB is owned by 67 members, including 48 from the region. Its main instruments for helping its developing member countries are policy dialogue, loans, equity investments, guarantees, grants, and technical assistance. INNOVATIVE STRATEGIES IN HIGHER EDUCATION FOR ACCELERATED HUMAN RESOURCE DEVELOPMENT IN SOUTH ASIA SRI LANKA ASIAN DEVELOPMENT BANK 6 ADB Avenue, Mandaluyong City 1550 Metro Manila. Philippines ASIAN DEVELOPMENT BANK www.adb.org INNOVATIVE STRATEGIES IN HIGHER EDUCATION FOR ACCELERATED HUMAN RESOURCE DEVELOPMENT IN SOUTH AsiA SRI LANKA ASIAN DEVELOPMENT BANK Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO) © 2016 Asian Development Bank 6 ADB Avenue, Mandaluyong City, 1550 Metro Manila, Philippines Tel +63 2 632 4444; Fax +63 2 636 2444 www.adb.org; openaccess.adb.org Some rights reserved. Published in 2016. Printed in the Philippines. ISBN 978-92-9257-342-3 (Print), 978-92-9257-343-0 (e-ISBN) Publication Stock No. RPT146957 Cataloging-In-Publication Data Asian Development Bank. Innovative strategies in higher education for accelerated human resource development in South Asia: Sri Lanka. Mandaluyong City, Philippines: Asian Development Bank, 2016. 1. higher education. 2. Sri Lanka. 3. South Asia. I. Asian Development Bank. 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Notes: In this publication, “$” refers to US dollars. ADB recognizes “Macao” as Macau, China. iii Contents Tables, Figures, and Boxes v Foreword vii Preface viii Abbreviations x Executive Summary xi Chapter 1: Socioeconomic Background 1 A. Economic Growth 1 B. Population and Employment 2 C. National Development Agenda 3 Chapter 2: The Higher Education System 5 A. Higher Education Policies 6 B. The Structure of Higher Education 9 C. Organization and Management 10 D. Budget and Other Administrative Matters 13 E. Main Stakeholders 14 F. Performance of the Higher Education System 15 G. Financing Higher Education 22 Chapter 3: Major Issues and Constraints in Higher Education 27 A. Access and Equity 27 B. Quality of Learning 31 C. Economic Relevance 32 D. Organization and Management 36 E. Costs, Financing, and Internal Efficiency 42 F. Information and Communication Technology Development 50 G. Research and Development 52 Chapter 4: Innovations and Good Practices 54 A. Development Plans and Targets 54 B. Policies, Plans, and Programs 55 C. Reform Programs 56 iv Contents D. The Role of Official Development Assistance 59 E. Lessons Learned and Good Practices 60 Chapter 5: A Summary of Major Challenges and Recommended Interventions 67 A. Major Challenges in Higher Education 68 B. Priority Areas for Strategic Interventions 69 Appendixes 74 1 The Structure of Sri Lanka’s Educational System 74 2 Universities and Affiliated Institutions under the University Grants Commission 78 3 Educational Qualifications of Academic Staff, 2008 80 4 Admission Policies for Public Universities in Sri Lanka 81 5 Annual Demand for Training in Sri Lanka 83 6 Good Practices in Sri Lankan Higher Education 85 References 89 v Tables, Figures, and Boxes Tables 1 Activity–Outcome Matrix for Higher Education in Sri Lanka 7 2 The Numbers of Institutions, and of Undergraduate and Graduate Programs, Recognized by the University Grants Commission, 2011 12 3 Graduate Program Enrollment and Output—Public Sector Institutions 21 4 Distribution of Recurrent Expenditure by Higher Education Institutions, 2011 23 5 Income and Expenditure of Higher Educational Institutions, 2000 and 2011 23 6 Breakdown of Higher Education Scholarships, 2009 26 7 Salaries of University Faculty, per Month 45 8 Private and Social Rates of Return on Education 47 9 Revenue Mixes of Public University Systems in Five Countries 48 10 Sri Lanka’s Rankings in Information and Communication Technology Development, 2012–2013 50 11 Numbers of Scientists and Technicians in Research and Development, by Sector, 2006 and 2008 52 Figures 1 Numbers of Qualified Students Admitted to Public Higher Education Institutions (Undergraduate Programs) 15 2 Undergraduate Admissions by Major Academic Stream, 2001–2011 16 3 Bachelor’s Degree Students Admitted, Enrolled, and Graduated, 2011 17 4 Credentials of Higher Education Faculty, by Major Subject Area, 2008 18 5 Per Capita Cost of Education, 2000–2011 24 6 Per Capita Cost of Undergraduate Studies, by University, 2005 and 2010 25 7 Per Capita Cost of Higher Education, by Discipline, 2005 and 2010 25 8 Provincial Gross Domestic Products, Poverty Rates, and University Admissions, 2011 28 9 Graduate Unemployment Rates in Sri Lanka, 2000–2010 33 10 Growth of Sri Lanka’s Workforce in Information and Communication Technology, 2008–2010 35 11 Public Financing of University Education, 2000–2011 42 12 Cost per Graduate in Sri Lanka, 2010 43 13 Cost per Graduate in Sri Lanka, by University, 2010 44 14 Financing Higher Education in Sri Lanka 59 15 External Quality Assessments Completed at Public Universities by the Quality Assurance and Accreditation Council, 2005–2010 64 vi Tables, Figures, and Boxes Boxes 1 Institutional Innovations and Development Activities 57 2 Examples of University Internship Requirements 58 3 The Department of Accounting, University of Sri Jayewardenepura 62 4 The Staff Development Center at the University of Colombo 63 5 A Summary of Key Constraints on Higher Education