The current economic crisis in Sri Lanka is continuing, with very difficult economic conditions including inflation rising further to almost 70 per cent. However, the situation appears to have calmed down somewhat in the country’s higher education sector, with universities returning to normal operation. Demand for international education is still strong, although the depreciation of the Sri Lankan Rupee against foreign currencies has created challenges for potential students.
From an economic perspective, the country’s official headline inflation rate increased to 69.8 per cent in September 2022, up from 64.3 per cent in August. Food inflation was even higher, at 94.9 per cent. IMF bailout negotiations are also taking place and both parties have agreed to a preliminary agreement pending IMF Management and Executive Board approval. This will take a few more months to be in effect.
In the education sector, all government, and private universities – including transnational education delivery (TNE) – have returned to normal operation and are now operating face to face classes. GCE A-level examination results were released by the end of August, in time for higher education institutions and TNE programmes to enrol new students.
The interim budget presented by the President of Sri Lanka on 30 of August 2022 proposed a budget of GBP 188 million (Rs.77.40 billion) for the country’s higher education sector. Some priority areas include GBP 8.5 million (Rs.3.5 billion) to scale up the state universities into higher positions in world university rankings, GBP 9.7 million (Rs.4.0 billion) for the construction of 10 technology faculties in 10 universities, GBP 16 million (Rs.6.7 billion) on R&D, GBP 1.8 million (Rs.745 million) on capacity and professional development of university staff, and GBP 0.97 million (Rs.400 million) loan scheme for the degree followers in private sector TNEs and University Grants Commission approved HE institutes.
Despite the crisis the British Council is observing a growing demand for UK higher education qualifications and TNE partnerships in Sri Lanka, based on information from agents and requests from Sri Lankan institutions. The main challenge for Sri Lankan students who are considering studying an overseas qualification is the depreciation of Sri Lankan Rupee against foreign currencies.
The government of Sri Lanka is aware of difficulties faced by students currently studying overseas and is considering finding alternative solutions for providing access to quality higher education opportunities for young people. The interim budget proposed to establish branch campuses of foreign universities within Sri Lanka, although this plan is still at a very early stage.
Currently Sri Lanka is open for visitors. Visitors are permitted to travel to any part of the country using any mode of transport, and overseas countries including the UK have relaxed their previous travel advisories.
British Council Comments
Despite the socio-economic crisis, education remains a high priority for both the Sri Lankan government and its citizens. The importance the government places on education is clearly expressed through the interim budget, with funding provided in several areas to improve the country’s learning environment as well as a promise to increase education expenditure in next year’s budget.
Visa statistics from the second quarter of 2022 show a 174 per cent increase in UK student visas issued to main applicants from Sri Lanka compared to the same quarter a year ago, showing that students are still actively looking outwards as a response to the crisis. Similarly, the British Council is not aware of any significant problems surrounding students enrolled for UK qualifications through TNE programmes.
When announcing measures to facilitate the establishment of branch campuses as part of the budget speech on 30 August, the country’s President stated that these are “particularly focusing on Science, Technology, Engineering and Mathematics subjects as well as finance, information technology and medicine”. The government will “provide all facilities through the Board of Investment to establish such branch campuses” in line with relevant laws which will be amended when and where necessary. However, these branch campuses will take time to establish and are unlikely to have any effect on students studying overseas in the short term.
For any further questions you may reach to sajeewa Meepage through sajeewa.meepage@britishcouncil.org
For further reading please click on
Inflation
https://www.cbsl.gov.lk/en/news/inflation-in-september-2022-ccpi
Economic indicators
2022 Interim Budget highlights
https://www.treasury.gov.lk/web/budget-highlights-2022-archived/section/education
President’s Budget speech
https://www.parliament.lk/files/pdf/budget/2022/interim-budget-speech-2022-en.pdf
UK Travel Advisory