Financing Technical and Vocational Education and Training in Sri Lanka

Abstract

Over the past decade, the Government of Sri Lanka (GoSL), through its national strategies and policies, has prioritized developing the country’s human resources. In particular, given the large number of youth that remain outside the formal education system, the government has focused on Technical and Vocational Education and Training (TVET). However, limited government budgets, particularly with the resources devoted to GoSL’s Free Education Policy, have constrained TVET’s development, leading to deteriorating quality, a widening skills gap, and increasing youth unemployment. Nonetheless, based on a literature review, focus-group interviews, and field visits, this study highlights some exemplary TVET financing cases that can provide lessons for future development. This study focused on: 1) financial limitations of Sri Lankan TVET, 2) case studies of financial breakthroughs, and 3) recommended policies for funding TVET in Sri Lanka. This study has found that increasing private sector investment, developing innovative financing, and expanding donor contributions offer options for expanding TVET financing in Sri Lanka.