In 2022, Sri Lanka’s government—both provincial and central—dedicated only 1.5 percent of its GDP to education, including primary, secondary, and tertiary levels. This places Sri Lanka at the bottom of the list for education spending in South Asia. By contrast, countries like India, the Maldives, and Afghanistan invest over 4 percent of their GDP in public education, while Bhutan leads the way, allocating an impressive 8 percent. For the past 15 years, Sri Lanka’s education budget has remained stuck between 1.5 and 2 percent, while most other South Asian countries have steadily increased their spending. 

Despite Sri Lanka’s relatively strong educational outcomes, there's still plenty of room for improvement, especially when it comes to raising the quality of education and expanding access to higher education. Investing in education is crucial for building human capital, which fuels productivity and drives economic growth. Moreover, a strong education system is essential for tackling many of the social challenges the country faces today. 

Due to limited government revenue and spending constraints, the government may need to redirect funds from other sectors and prioritise its needs to increase the budget for education. You can explore the 2024 Budget allocations for each sector here. Let us know in the comments which areas you think the government could reduce spending on to improve education in the Sri Lanka.   

Note:  

The figures for Sri Lanka are sourced from the central bank's functional classification, which includes both central government and provincial council expenditure on education. For other countries, World Bank data on government expenditure is used, accounting for both central and regional government spending on education. 

In some cases, data on education spending was not reported for certain years. These include Afghanistan (2017 onwards), India (2022), Bhutan (2012), Bangladesh (2010), Pakistan (2022) and Sri Lanka (2020). For these years, it is assumed that education spending remained constant at the levels last reported.

Sources

World Bank. "Government expenditure on education, total (% of GDP)" at https://data.worldbank.org/indicator/SE.XPD.TOTL.GD.ZS?end=2014&locations=BT-AF-LK-IN-MV-NP-PK-BD&start=1971 [last accessed 10 October 2024]. 

Central Bank of Sri Lanka. "Annual Reports." At https://www.cbsl.gov.lk/en/publications/economic-and-financial-reports/annual-reports [last accessed 10 October 2024].