Foreign Higher Education is nothing to be frowned upon. It provides students with the opportunity to expand their worldviews. Different countries possess distinct educational systems, and studying abroad allows students to experience these diverse methodologies. This exposure broadens intellectual horizons and fosters adaptability to various academic environments. Furthermore, immersion in a foreign culture enhances one’s understanding of different customs, traditions, and perspectives, cultivating cultural sensitivity and open-mindedness. Stepping beyond one’s comfort zone to embrace new experiences challenges preconceived notions and encourages personal growth.
And this is anything but new. A historical narrative that exemplifies the transformative power of foreign education is the story of Sri Lankan Prince Konappu Bandara. Following the tragic assassination of his aristocratic family by Rajasinghe I during the attack on the Kandyan Kingdom by Sitawaka forces, Bandara fled to Portuguese-controlled Goa. There, he converted to Catholicism, adopting the name Dom João de Áustria, and was later sent to Portugal to pursue his education. Armed with newfound knowledge and the support of the Portuguese, Bandara returned to Sri Lanka, reclaiming the Kandyan Kingdom in 1592. However, in a dramatic turn of events, he declared himself king, taking the throne as Vimaladharmasuriya I.
The impact of Vimaladharmasuriya I’s foreign education is evident in his reign. Unlike many rulers of ancient Sri Lanka, he demonstrated a progressive and strategic approach to foreign relations. For instance, he engaged with European powers in ways unprecedented for the time. A notable example of his diplomatic acumen was his alliance with Dutch explorer Joris van Spilbergen to counter Portuguese forces. Although the coalition ultimately failed due to the misconduct of a Dutch captain, this act showcased a level of geopolitical understanding that was rare among local rulers of the era. Historians still celebrate his reign as one of the most effective and forward-thinking in Sri Lanka’s history. He has been far ahead of any of the feudal rulers of the Kandyan Kingdom.
More than the times of Konappu Bandara, today Sri Lanka needs to provide foreign education to its young men and women. Sending Sri Lankan students to Western universities offers multiple benefits to individuals and the nation. These institutions often provide access to a high-quality education characterized by rigorous academic standards, advanced research facilities, and experienced faculty, potentially exceeding what’s available domestically. Furthermore, studying abroad fosters the development of a global perspective by immersing students in diverse cultures and exposing them to new ideas and ways of thinking, cultivating adaptability and open-mindedness.
Western universities also often emphasize developing crucial skills like critical thinking, problem-solving, and communication, which are highly valuable for driving innovation and progress in developing nations. The opportunity to build international networks during their studies can provide students with valuable connections for future careers and collaborations. Ultimately, the goal is that many of these students will return to Sri Lanka after their studies, bringing back their newly acquired knowledge, skills, and global perspectives to contribute to the country’s development in various sectors. This international education complements and strengthens the Sri Lankan education system, rather than replacing it, by providing specialized training and expertise.
Precise information on the number of students studying abroad is unavailable, as there is no requirement for any Sri Lankan authority to collect such data systematically. Even if there were, it would be a difficult task. Consequently, the figures provided are approximate and based on rough estimations. Nonetheless, they serve the intended purpose. According to these estimates, approximately 45,000 Sri Lankan students are pursuing studies across seven countries. The data for India and a few countries are missing, though. If they are added, the number might jump to 50,000. However, the data does not clarify whether these individuals hold Sri Lankan passports or are of Sri Lankan origin. The latter may be the case.
In a separate development, Sujeewa Mudalige, former Managing Partner PwC Sri Lanka, suggested in a LinkedIn post that approximately 30,000 Sri Lankan students leave the country each year to pursue higher education abroad. He further estimates that the total number of Sri Lankan students studying overseas could be around 100,000. However, adopting a more conservative approach, a figure of 50,000 will be considered for reference.
The following critical figure required to estimate the cost of higher education originates from the Institute of Policy Studies of Sri Lanka (IPS). According to IPS, the annual average cost (foreign exchange outflow) per Sri Lankan student studying abroad is Rs5,853,257 (approximately $20,000). Based on these figures, the preliminary estimate for the total annual foreign exchange outflow amounts to $1 billion. However, recognizing that some students may be financially supported by their parents residing overseas, we can apply a factor of 0.8, reducing the estimated outflow to $800 million. This is a significant sum, roughly equivalent to 1% of Sri Lanka’s GDP. Mudalige’s estimate for the same is $2 billion per year.
Sri Lanka’s annual ICT/BPM export revenue 2024 was $1,454 million. The country’s apparel sector earned approximately $4,700 million in the same year. Many of these USD earnings should be allocated to financing higher education for Sri Lankan students abroad. Based on an estimated annual expenditure of $2 billion for overseas education (Mudalige’s figure), this represents approximately 140% of the ICT/BPM sector’s export revenue and 42% of the apparel sector’s earnings. As we have seen above, this might not be as high as in reality, but the figures are too large to be ignored. This demonstrates the considerable financial impact of foreign education on Sri Lanka’s economy.
Are there any strategies to reduce this amount, alleviating the strain on Sri Lanka’s USD outflow? Is it feasible for Sri Lankan universities to offer equivalent educational opportunities, ensuring the conservation of valuable foreign exchange during this critical economic period?
The answer is complicated. Most Sri Lankan state universities do not provide student opportunities through fee-levying programmes. As a result, a student who achieves excellent results in the GCE A/L examination but is unable to secure admission to one of the 12 state university medical colleges (the competition is so tough!) will often consider alternative options such as Tianjin University in China, Kasturba Medical College (KMC) in Manipal in India, with presence also now in Malaysia, the International Medical University (IMU) in Malaysia, or Chittagong Medical College in Bangladesh. The only state-affiliated institution offering fee-levying medical degrees is the Kotelawala Defence University (KDU). Additionally, NSBM Green University in Homagama received approval from the Cabinet of Ministers to establish a Faculty of Medicine some time ago; however, it is yet to commence operations. Opportunities in the medical field remain so limited that right now it can be reasonably concluded they are virtually non-existent.
This may not be the case in every field. Fee-Levying-State and Non-state universities, including private and foreign-affiliated institutions, have gained prominence in Sri Lanka due to the increasing demand for higher education. These institutions offer undergraduate and postgraduate programmes in diverse disciplines such as business, engineering, IT, health sciences, and social sciences. Many private universities collaborate with internationally recognized educational bodies, allowing students to obtain globally accredited degrees while studying in Sri Lanka. The quality of these institutions varies significantly, as some maintain rigorous academic standards, while others may lack proper accreditation or experienced faculty. To ensure quality, the Ministry of Education and the University Grant Commission have implemented a regulatory framework requiring private higher education institutions to meet specific accreditation criteria.
Fee-levying higher education programmes in Sri Lanka generally offer advantages such as smaller class sizes, flexible learning options, and industry-relevant curricula. Despite the challenges, the growing availability of diverse higher education options—both state and non-state—has contributed to increasing access to tertiary education, helping Sri Lanka develop a skilled workforce to meet the demands of a rapidly evolving economy.
Several policy adjustments, potentially requiring minimal investment, could yield significant improvements in the medical education sector. Specifically, the expansion of fee-levying medical degree programmes should be prioritized. Where state universities cannot offer such programmes, private universities should be actively supported in their expansion efforts, including granting access to teaching facilities within government hospitals. Reducing the overall cost of medical degrees within Sri Lanka would likely curtail the outflow of students seeking medical education abroad. While governmental support for these initiatives is encouraging, resistance from medical professionals and state medical students presents a challenge. A shift in this mindset is crucial for the overall benefit of society.
One of the most critical steps is enhancing the quality of domestic higher education in state and private universities. This includes modernizing curricula to align with global standards and industry demands, ensuring local degrees are internationally recognized, and investing in faculty development through training, research grants, and exchange programmes. Establishing research and innovation hubs in artificial intelligence, biotechnology, and fintech can encourage students to pursue advanced studies locally.
Financial support plays a key role in retaining students. The government can also improve the low-interest education loans scheme with repayment incentives for those who work locally after graduation. Strengthening industry-academia linkages is equally important. This can be achieved by making internships and apprenticeships mandatory, introducing skill-based learning aligned with global job markets, and providing grants for student-led startups and research projects.
Universities can also foster international collaborations. They do so to a certain extent even now. However, a lot more remains to be done. Establishing joint degree programmes with reputed foreign universities, allowing internationally recognized institutions to set up branch campuses, and expanding access to online and hybrid learning opportunities can help retain students while providing them with a world-class education.
Then, the other side of the coin. Beyond the financial impact, the country is also experiencing a brain drain, as many students who leave for foreign education do not return. This results in shortages of skilled professionals in crucial fields such as technology, medicine, engineering, and research, forcing Sri Lanka to rely on foreign expertise or face economic stagnation due to a lack of highly skilled workers. The growing preference for foreign institutions also reflects a declining confidence in the local higher education system, which struggles with inadequate funding, outdated curricula, and difficulties retaining top faculty. If this trend continues, Sri Lanka’s universities will become less competitive, further accelerating student migration.
Education is a critical driver of economic growth and national development. The ongoing outflow of students and financial resources to foreign institutions impedes innovation, diminishes job creation, and compromises Sri Lanka’s long-term economic prospects. The government must urgently implement the higher education reforms outlined previously to mitigate this crisis. Failure to intervene risks economic weakening and a sustained decline in Sri Lanka’s global competitiveness within the knowledge economy.
Chanuka Wattegama [email protected] is a public policy researcher. The ideas expressed are personal.