Free University Education in Sri Lanka: Is It Benefited for Poor Households?

Since 1944, Sri Lankans have had a free education system from grade one to university level. Sri Lanka has achieved nearly 100 percent enrollment at the secondary school level but is unable to provide university education for all students who qualified university entrance exam. The evidence shows that household spends significant proportion of their income on education. When poor households are unable to spend on education as rich households, the Sri Lankan education system has not become a level playing game. Hence, the main objective of this study is to identify the beneficiaries of free university education in Sri Lanka. The study is based on the secondary data collected from the Department of Census and Statistics in Sri Lanka. The logit regression model is used to calculate the probability of obtaining the degree of the individuals in different income deciles. Findings show that individuals living in urban and higher income deciles have more chance to obtain a degree than others. It indicates that the Sri Lankan free education system is more beneficial for rich households.