Development Challenge
Sri Lanka’s higher education sector is vital for economic development and the transition from a lower-middle income country (LMIC) to an upper middle-income country (UMIC). However, the sector has been underdeveloped with the gross enrollment ratio at 21 percent (2014)—below LMIC and UMIC averages—and the share of students in priority science, technology, engineering, mathematics disciplines (STEM) was even lower, with 13 percent in science and 7 percent in engineering. Overall, the country ranked 88th out of 115 countries for higher education participation. It also faced additional challenges including inadequate research and innovation output (138th out of 204 countries), passive student learning, and scarcity of qualified academic staff in the higher education sector.
Results
- Over 120,000 students—including 70,000 female students (58 percent)—benefitted from curricula improvement, stronger university-industry collaboration, and English language skill enhancement.
- STEM enrollment in select higher education institutions (HEIs) increased by 10 percent annually from 2017 to 2023— nearly 30 percent above the end target.
- HEIs in remote areas saw a significant rise in enrollment. The Faculty of Technological Studies at Uva Wellassa University, located in one of Sri Lanka’s least-developed provinces, experienced more than a 100 percent increase in enrollment in 2023 compared to 2017, after the project supported advanced laboratories in microbiology, food systems, and biosystems.
- At the Sri Lanka Institute of Advanced Technological Education (SLIATE), STEM enrollment exceeded the target by 12 percent.
- 91 Research and Development and Innovation Commercialization (RDIC) sub-projects achieved 80 percent or more of their outcome targets, exceeding the initial target of 48 RDIC sub-projects. These sub-projects included innovations that improved key Sri Lankan export products such as graphite-infused rubber tires that are more efficient than normal rubber tires, and a range of cinnamon-based beverages such as wine, beer, and cola.
- University-Business Linkage (UBL) offices were established in all 15 targeted universitiesto strengthen university-industry partnerships, facilitate technology transfer, and connect graduates and research outputs with the private sector—building a structural bridge between higher education and the labor market that sustains job-relevant outcomes beyond the project’s life.
WBG Approach
Contribution to WBG Targets and Jobs
The project contributed to the jobs agenda by producing more and better-qualified
STEM graduates for the labor market; improving graduate employability through English, soft skills, and work-linked learning; and fostering innovation ecosystems with direct spin-off enterprises and additional workers hired through RDIC grants.
READ MORE: https://www.worldbank.org/en/results/2026/05/07/quality-higher-education-is-key-to-jobs-and-prosperity-here-is-how-sri-lanka-did-it
