Exploring the Determinants of Demand for Private University Education in Sri Lanka

Abstract

Sri Lanka’s free education system from school to university constitutes about 2.00 percent of the total government expenditure. Annually on average 230,000 students qualify for university entrance but only about 42,000 students receive placement in 17 state universities in the country. Majority of students who do not get placement in state universities seek to enroll in private universities in Sri Lanka or abroad. Following the GCE A/L examination an increased wait time of about two years has been reported to enroll to the state universities. However, the private universities commence the degree programs with pending results. Hence, there is an increased trend for demand for private universities education in Sri Lanka. The main objective of this study is to identify the determinants of demand for private university education in Sri Lanka. The data is based on a survey conducted among students who are waiting for results after GCE A/L in January 2024. Logistic regression model is employed as an analytical technique. The findings shows that parents’ level of education and family income has significant positive impact on probability of enroll in private universities.