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DE RUEHLM #0025/01 0080935
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R 080935Z JAN 07
FM AMEMBASSY COLOMBO
TO RUEHC/SECSTATE WASHDC 5071
INFO RUCPDOC/USDOC WASHDC
RUEHNE/AMEMBASSY NEW DELHI 0436
RUEHKA/AMEMBASSY DHAKA 9748
RUEHIL/AMEMBASSY ISLAMABAD 6686
RUEHKT/AMEMBASSY KATHMANDU 4752
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RUEHCG/AMCONSUL CHENNAI 7250
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RUEHLMC/MILLENNIUM CHALLENGE CORP

UNCLAS SECTION 01 OF 03 COLOMBO 000025 
 
SIPDIS 
 
SIPDIS 
 
DOL/ILAB FOR TINA MCCARTER 
 
DRL/IL FOR LAUREN HOLT 
 
STATE FOR SCA/INS 
 
MCC FOR S GROFF, D NASSIRY AND E BURKE 
 
GENEVA PASS USTR 
 
E.O 12958: N/A 
TAGS: ECON ELAB EIND ETRD CE
SUBJECT:  SRI LANKA'S UNIVERSITY SYSTEM FAILING TO MEET STUDENT AND 
BUSINESS COMMUNITY NEEDS 
 
¶1. SUMMARY:  Sri Lanka's government-run university system is able to 
accommodate about 15 percent of eligible secondary school graduates, 
and the population of potential students is growing much faster than 
the universities can expand.  The University Grants Commission 
(UGC), a government body, decides which students will go to which 
universities and what they should study.  The majority of Sri Lankan 
university students study in Sinhala or Tamil, languages that are of 
limited use in today's business world.  However, there is little 
demand for privatization of the tertiary education system.  Current 
Sri Lankan students oppose the establishment of private schools in 
Sri Lanka because they fear that these students will be considered 
superior, thereby increasing competition for jobs.  In the meantime, 
students attending the highly politicized state-run universities 
lack important leadership and communication skills, and employers in 
Sri Lanka and abroad prefer students who have studied elsewhere. 
End Summary. 
 
------------------------------------------ 
Too Few Opportunities for Sri Lankan Youth 
------------------------------------------ 
 
¶2. Sri Lanka's government run university system is only able to 
accommodate about 15 percent of eligible high school graduates. 
Each year 200,000 students sit for the A-Level exams (closest 
equivalents being the SAT and ACT tests in the U.S.). Around 118,000 
typically pass the A-Level exams, but only 35,000 are allowed to 
apply for university admission.  The country's 14 universities are 
able to enroll just over 17,000 students per year.  The population 
of potential students is growing much faster than the universities 
can expand.  In 2005, 2000 students were added to state 
universities, but 2006 saw an increase of only 350. Universities are 
entirely government funded, and there is little money available to 
upgrade facilities, improve technology, or expand capacity.  After 
the 15 percent admission to state universities, only another two 
percent of students who pass the A-level exams are able to study 
abroad, leaving the vast majority (83 percent) of eligible 
university candidates without access to higher education. 
 
-------------------------------- 
Restrictive Application Process 
-------------------------------- 
 
¶3.  The UGC, established in 1979, distributes public funds to 
universities, serves as the central admission agency for 
undergraduate studies, maintains academic standards, and implements 
national education policies.  In practice, the UGC decides which 
students will go to which universities, and what they should study. 
Only about 10 percent of students get what they request, and the 
rest are assigned to programs and schools according to their A-Level 
test scores and their home district.  Disadvantaged areas get a 
larger quota of students and can qualify for admission with lower 
scores than Colombo students.  Least-developed areas are given 
special preference.  According to the Chairman of the UGC, ethnicity 
is not considered when deciding which students will go to which 
universities.  The one exception to this rule is the Jaffna campus, 
currently closed for security reasons, which only Tamil-speaking 
students attend.  Students who fail to gain admission are allowed to 
retake their A-Level exams and reapply up to three times. 
 
--------------------------------- 
Insufficient English Instruction 
--------------------------------- 
 
¶4.  Prior to 1959, all university level instruction was in English. 
Now, the majority of Sri Lankan university students study in Sinhala 
or Tamil, languages that open few doors in today's business world. 
The exception is Peradiniya University near Kandy, where English is 
still used.  There has been some movement recently to increase the 
use of English in schools.  In the past few years, the University of 
Colombo has turned toward teaching social science courses in English 
and requiring one year of intensive English for incoming students. 
 
COLOMBO 00000025  002 OF 003 
 
 
Students are eager for English instruction because it increases 
their competitiveness in the job market.  However, after two 
generations of minimal English instruction at all education levels, 
Sri Lanka's English teaching capacity is significantly impaired. 
 
------------------------------------- 
Little Progress Toward Privatization 
------------------------------------- 
 
¶5.  According to the Chairman of the UGC, there is no movement 
toward privatizing the tertiary education system.  He explained that 
there is little demand for private education, as education is the 
only ladder in Sri Lanka for upward mobility, and people expect it 
to be provided by the Government.  In addition to tuition, the GSL 
pays stipends to about 80 percent of students to cover living 
expenses. Only one university has a residential campus, so students 
must use their stipend to find cheap housing on the local market. 
 
¶6.  According to Chandrarathne Vithanage, Chairman of the 
Subcommittee on Education at the Ceylon Chamber of Commerce, Sri 
Lankan students do not want to see more private schools in Sri Lanka 
because they fear private school graduates will be preferred by 
employers, making their degrees less valuable.  A Universities Act 
was drafted in 2001 to liberalize and improve the university system, 
but was protested so strongly by university students that the 
then-UNP led government, a party that typically supports 
privatization, sat on the legislation and never passed it. 
 
------------------------------- 
Challenging Political Climate 
------------------------------- 
 
¶7.  Sri Lanka's political climate hinders education reform in other 
ways.  University campuses are a microcosm of national political 
divisions.  Student unions are backed by national political parties 
whose stranglehold on universities makes it difficult for the GSL to 
enact reforms.  The Janatha Vimukthi Peramuna (JVP) is the most 
active political party at many universities and Liberation Tigers of 
Tamil Eelam (LTTE)-influenced student unions dominate Eastern 
University and the University of Jaffna. 
 
--------------------------------------------- - 
Few Quality Opportunities in Private Education 
--------------------------------------------- - 
 
¶8.  More than 50 foreign universities operating in Sri Lanka are 
allowed to offer foreign degrees.  However, according to the 
University Grants Commission, these programs are extremely expensive 
and most people cannot afford them.  There is also no mechanism in 
place to evaluate the quality of private degrees offered in Sri 
Lanka.  These universities currently operate under the Board of 
Investment, but a new regulatory commission may soon be established 
to evaluate the quality of services offered. 
 
¶9.  Many Sri Lankan students pursue professional certifications 
along with their university degrees.  Professional certifications, 
particularly combined with a university degree, make graduates more 
competitive in the local job market.  Students typically attend 
university classes during the week and private tutorial classes on 
the weekend.  Unfortunately, these programs are not available in 
many rural areas. 
 
--------------------------------------------- - 
Minimal U.S. Educational Presence in Sri Lanka 
--------------------------------------------- - 
 
¶10. U.S. universities have a very small presence in Sri Lanka. 
Daniel Kelch, Programs Director at American National College in 
Colombo, affiliated with Northwood University, told EconOff that UK 
and Australian universities have a much larger presence in Sri 
Lanka, in part because their governments help fund expansion of 
 
COLOMBO 00000025  003 OF 003 
 
 
universities abroad and promotion of universities within the host 
countries.  As a result, Sri Lankans have little exposure to the 
American educational culture and many are more comfortable with the 
British exam-based educational system.  Kelch stressed that students 
who attend American schools are exposed to American values, tend to 
prefer American products and services, and are more likely to look 
to American companies for employment. 
 
--------------------------------------- 
University Graduates Missing Key Skills 
--------------------------------------- 
 
¶11. Vithanage told EconOff that university graduates in Sri Lanka 
lack "soft" skills such as leadership and communication skills.  He 
said the university system does not teach students to think or show 
them how to apply knowledge.  While some changes and reforms are 
taking place within the universities, private sector employers still 
prefer to hire foreign-educated students. The Chamber has 
recommended that the GSL allow state-owned universities to be more 
independent and autonomous, and that university vice chancellors be 
given the power to make changes to curriculum as needed and to raise 
private funds. 
 
¶12. COMMENT:  Within the government university system, even the 
students accepted into university receive only a moderately useful 
education.  The perceptual gap between employers and the general 
population is alarming.  Prospective university graduates enjoy the 
prestige that comes from making it into the state-run system, and 
fear that competition from private institutions will make them less 
competitive.  In contrast, employers find that university graduates 
are poorly prepared for the business world, and that the graduates 
expect perks before demonstrating their value.  Employers typically 
prefer students who have studied elsewhere.  The way to address 
these deficiencies is to open up the system to private universities 
that can provide healthy competition and more opportunities for 
students.  Unfortunately, with little public support for 
privatization and few funds available to modernize the current 
system, the vast majority of eligible students continue to be barred 
from university admission, and many who are admitted are not suited 
to today's business climate. 
 
BLAKE