The state universities in Sri Lanka absorb only about 20% of the secondary school leavers qualified for university admission. Yet many of the local graduates remain unemployed for several years. While the state sector does not offer adequate employment opportunities for them, private firms often do not absorb them due to their alleged unsuitability for private sector employment. Though greater public investments in general and higher education appear to be the way to improve quality of education and the employability of graduates, the governments tend to give priority to areas such as physical infrastructure and social services.
This paper examines the recent trends in enrolment in universities and unemployment among educated youth in the of the light data drawn for the national youth survey of Sri Lanka conducted under the direction of the data drawn from of the author in 2009. This paper also looks at recent investment patterns in education in order to examine the adequacy of public investment in the sector, persisting structural inequities and their implications for equity and social justice.