In 2022, Sri Lanka’s government—both provincial and central—allocated only 1.5 percent of GDP on all levels (including primary, secondary, and tertiary levels). This placed Sri Lanka as the third-lowest country in the world in terms of government spending on education, with only Haiti and Laos spending a smaller share of their GDP.

Sri Lanka also has the lowest expenditure in South Asia.

What makes this underinvestment even more striking is the comparison to less developed countries that spent a greater portion of their GDP on education. For example, Sierra Leone allocates 8.8 percent, Mali 4 percent, and Uganda 2.6 percent. These comparisons emphasize the relative underfunding of Sri Lanka’s education sector.

The stark contrast between Sri Lanka and these countries raises important questions about the nation’s budget priorities and the potential long-term consequences for its development. Investing in education is integral for economic development, and human flourishing. Without significant improvements in funding, Sri Lanka may face challenges in achieving its future sustainable development goals, both in human capital and economic progress.

Note:  

The World Bank Database has provided data for 163 countries starting from 2020.

The bottom five list excludes countries with populations under 1 million. Monaco, the only country excluded, had 1.4% of its spending allocated to education.

Figures for Sri Lanka are extracted from the central bank's functional classification to include both central government and provincial council expenditure on education.

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].