Abstract:
Sri Lanka attained independence from Great Britain in 1948 and enshrined the right to
free education in the constituti on. Despite the ravages of 27years civil war between
1983 and 2009, Sri Lanka continuously maintains the highest literacy rate in South Asia
while the previous studies have shown a disparity between rural and urban sectors. Sri
Lanka has followed a mix of growth-oriented and welfare policies over the last three
decades. Amidst those policies average per capita income is increasing and many
people are in middle- and higher-income ranges than ever before (Gunatilaka, 2006).
Rural urban disparity has been one of the major concerns for the policy makers. The
extent of these disparities differs from country to country (Das and Pathak, 2012).
Education is an essential factor for both economic development and to eradicate
poverty. Economic devel opment in a country wouldn't be achievable without better
education performances. A universal education system in a country promotes not only
economic development but also the productivity, and increases per capita income. The
influence of an education system can be measured at the micro level of an individual
family; which assists to build up the nation. It builds the foundati on on which most of
the economic and social well-being of a citizen. Education is the key to increase
economic efficiency and social consi stency, by growth of the value and efficiency of
the labor force in order to upgrade poor from poverty. Education increases the overall
productivity and intell ectual flexibility of the labor force and ensures the
competitiveness of a country in the world market and also characterized by changing
technologies and production methods.
