Report

H IGHER EDUCATION SERVICES 143
W/120? This is not clear since the horizontal commitments
do not refer to any CPC number giving rise to
serious ambiguity regarding the coverage of the sector.
Since FDI is allowed in education, that commercial
presence is permitted. However, nothing can be said
about other modes. In fact, no commitments made
under other modes imply that Modes 1, 2, and 4 are
unbound. Hence in the absence of detailed commitments
in the sector nothing can be made out of the Sri
Lankan schedule of commitments. Although Sri Lanka
provides a promising market for other South Asian
countries, lack of commitments may prevent them from
supplying education services. In this regard, commitments
under all modes would be relevant.
According to the World Bank, Sri Lanka devotes
the lowest share of the public budget to education of
all South Asian countries (World Bank 2005). The Bank
suggests that private sector investment and participation
in the Sri Lankan education should increase. Further,
it suggests that relaxing legal obstacles and introducing
strategic initiatives to counter the adverse political
economy environment to private sector participation
in education could produce several benefits. First, it
would increase the overall volume of resources invested
in the education sector. Second, since the students
attending private institutions are likely to be drawn
from upper income families, it would release more
public resources, on a per student basis, for students
from poorer families. Third, it would stimulate
economic activity in a sector where investment has been
artificially restricted and contribute to higher growth.
Fourth, it would provide alternative mode of service
delivery, with considerable power and responsibility at
the level of individual education institutions. These
private education institutions would be compelled to
offer high quality services to remain viable in an
economic context where they are in competition with
free public education institutions. However, experience
does not always support the World Bank viewpoint and
what is, in fact, needed is a strong and efficient regulatory
system that can ensure private institutions to offer
quality education.
Since the establishment of private universities has
been an extremely contentious issue, the World Bank
suggests that it is highly unlikely that private universities
can be established in Sri Lanka in the medium term
(World Bank 2005). Others also suggest that a major
impediment in the existing university system is that
there has been a lack of reforms that would facilitate
the growth of accredited private institutions (Taneja
et al. 2004). However, the World Bank suggests, the
government of Sri Lanka has responded to the opposition
to private universities by encouraging the private
sector to participate in non-contentious areas. These
have mainly been the establishment of private degree
awarding institutions, usually linked to foreign universities,
and investment in tertiary level programmes such
as professional and technical courses (World Bank
2005). Taneja et al. suggest that the private sector is
mainly engaged in the provision of professional education
particularly in the areas of accountancy, management
and information technology (Taneja et al. 2004).
Although there are provisions in the existing Universities
Act to recognise degree courses conducted by
private institutions, the process is sill not clear (Ibid).
Some private institutions conduct courses leading to
degrees in collaboration with foreign universities. The
Bank argues that Sri Lanka needs to explore options
to expand private participation in tertiary level nonuniversity
education in professional and technical fields
where the demand for labour, both within and outside
the country, is strong (World Bank 2005).
Taneja et al. have done a detailed study on the Sri
Lankan education system (Taneja et al. 2004). They
suggest that in Sri Lanka, government is the main
provider of primary education, with only one percent
of the schools owned and run privately and it is the
sole operator of accredited universities in the country.
Due to limited opportunities available at the
universities, they suggest, there exists an excess demand
for university education. For instance, in 2003, only
14% of eligible students were granted admission to
national universities. Due to a dearth of opportunities
for higher education, a large number of Sri Lankan
students who can afford foreign university education
leave Sri Lanka annually. The preferred destinations
to obtain degrees in higher education are the US, the
UK, and Australia. Although India is not a preferred
destination, several students opt for it because of lower
costs, geographical proximity and cultural affinity.
They further inform that the number of students
coming to India increased from 1000 in 2002 to 1600
in 2003. Most of the students come to Bangalore,
Chennai, Trichy, Madurai and Delhi. Students come
to India to study professional degree courses such as
engineering, medicine, management and communication.
In addition, a large number of students pursue
undergraduate and postgraduate degree courses in
various disciplines. Most of the institutions have quota
for foreign students ranging between 5% and 30% of
the total seats. However, there is no special quota for
Sri Lankan students. The fee charged from foreign