Sri Lanka - Education and Training Sector : Strategy Review

Document of THE WORLD BANK FOR OFFICIAL USE ONLY CONFIDENTIAL L A3~ Report No. 12460 CE SRI LANKA EDUCATION AND TRAINING SECTOR STRATEGY REVIEW June 27, 1994 FILE COPY CONFIDENTIAL Country Department III Report No: 12460 CE Population and Human Resources Division Type: SEC South Asia Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not be disclosed without World Bank authorization. CURRENCY EQUIVALENT (December 1993) US$1.00 = SL Rs 50 SL Rs 1,000 = US$ 20.00 SL Rs 1 million = US$ 20,000 Fiscal year January-December ACRONYMS A/L Advanced Level examination AUC Affiliated university college EPD Education Publications Department HNDE Higher National Diploma of Engineering ICTAD Institute for Construction Training and Development MOECA Ministry of Education and Cultural Affairs MOHE Ministry of Higher Education and University Affairs NAITA National Apprenticeship and Industrial Training Authority NIE National Institute of Education O/L Ordinary Level examination TC Teachers' college TVEC Tertiary and Vocational Education Commission TVET Technical and vocational education and training UGC University Grants Commission SRI LANKA EDUCATION AND TRAINING SECTOR STRATEGY REVIEW Table of Contents Page No. EXECUTIVE SUMM ARY .................................................. 1 Background and Overall Strategy ........................................ C H A P T E R 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 STRATEGY REVIEW ............................................... 9 A . O verall Strategy ................................................. 9 B. General Education ................................................ 13 C. Higher Education andResearch ........................................ 20 D. Technical and Vocational Education and Traiing ............................ 23 E. Cost and Financing ............................................... 24 F. Recommendations andStrategy ........................................ 25 CH A PTER 2 ... .. ... ............... ..................... ..... .... ... .. . 30 GENERAL PRIMARY AND SECONDARY EDUCATION .............................. 30 A . The School System ............................................... 30 B. The Teaching Profession ............................................ 36 C. Teacher Training ................................................ 40 D . The Curriculum ................................................. 43 E. Textbooks and Other ReadingMaterials................................... 45 F. Exam inations ...... ..... .....................................** 48 G . Private Schooling ................................................ 52 H . Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 CH A PTER ...........................................................57 HIGHER EDUCATION AND RESEARCH IN SRI LANKA ............................. 57 A . O verview . ..... .. ......... ............. ........... .. ..... .. .. . 57 B. Institutions and Enrollments .......................................... 60 C. Planning and Finance .............................................. 62 D . M ain Issues .. ...... .. ... ..................... ....... ..... ... . .. 66 CH A PTER 4 ........................................................... 69 TECHNICAL AND VOCATIONAL EDUCATION AND TRAINING ....................... 69 A: Institutional Framework ............................................ 69 B. Training Providers ................................................ 70 C. The Cost of PublicTraining .......................................... 73 D . Issues . . . . . . . . . . . . . . . .. . .. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74 C H A PTER .. .. ... ..... ........ ....................... ..... ... .. .. .. ..76 i EDUCATION EXPENDITURE ANDFINANCE .................................... 76 CH A PTER 6 .... ... ........ .. .................. ... ..... ..... ... .. ... .. . 90 SECTOR STRATEGY FOR EDUCATION AND TRAINING ............................. 90 A. Primary and Secondary Education ...................................... 90 B. Private Education ................................................ 98 C . H igher Education ................................................ 98 D. Technical and Vocational Education and Training ........................... 101 Social Indicators DataSheet .................................................vi Table 1.1 Education Costs andFinancing ........................................14 Table 1.2 Education Statistics (Summary) ........................................15 Table 1.3 ExaminationResults ...............................................16 Table 1.4 University Statistics ...............................................20 Bibliography and References ................................................105 ANNEX 1: BACKGROUND A: Sri Lankan LaborM arket ...............................................108 Table 1-1. Labor Market Indicators, Selected Years ............................ 109 Table 1-2. Employment Distribution by Sector 1980/81 and 1990 ................... 111 Table 1-3. Indexes of Real Minimum Wages, Selected Industries and Occupations, 1985-90 ...........................................114 Table 1-4. Strike Activity, 1980-89 .....................................115 Table 1-5. Sex Ratios in Employment by Sector, 1980/81 and 1990 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117 B: Mathematics and Science Education; Teacher Training .............................. 119 Table 1-6. O/L and A/L Science Results,1991 ..............................119 ANNEXES 2: GENERAL PRIMARY AND SECONDARY EDUCATION A: Restructuring the SchoolSystem ...........................................126 B: Miscellaneous Tables and Figures Figure 2-1. The Structure of the Education System, 1991 ........................ 127 Table 2-1. Schools According to Medium of Instruction, 1989 ..................... 128 Table 2-2. Pupil Enrollment by School Year and Language of Instruction, 1989-91 .............................................129 Table 2-3. Schools by Enrollment Size, 1991 ............................... 130 Table 2-4. Schools by Type and Years Taught, Selected Years .................... 131 Table 2-5. Number of Government Schools and Pupils, Selected Years ............... 132 Table 2-6. Enrollment by Level of Education, 1985 and 1991 ..................... 133 Table 2-7. Pupil Intake in Government Schools by Gender, 1985 and 1991 ............. 133 Table 2-8. Enrollment Projections for General Education Level and With and Without Declines in Repetition Rates, Selected Years .................... 134 Table 2-9. Promotion, Repetition and Dropout Rates, 1991 ........................ 135 Table 2-10. Promotion, Repetition, and Dropout Rates by Gender, 1991 .............. 136 ii Figure 2-2. Career Ladder for Educational Personnel, 1991 . . . . . . . . . . . . . . . . . . . . . . 137 Table 2-11. Number of Pupils and Teachers and Pupil-Teachers Ratios by Level, 1985 and 1991 ....................................... 138 Table 2-12. Teachers' and Education Adtinistrative Service Salaries (1993) . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . ... . . . . . 139 Table 2-13. Teachers in Government Schools by Qualifications and Gender, 1989 ................................................140 Table 2-14. Teachers in Government Schools by Qualifications and Subject, 1989-91 ..............................................141 Table 2-15. Teachers by Education Levels, 1985-91 . . . . . . . . . . . . . . . . . . . . . . . . . . . 142 Table 2-16. Pre-Service and In-Service Teacher Training in Colleges of Education by Area of Subject Specialization and Gender, 1989-91 ................. 143 Table 2-17. Teacher TrainingProvision................................... 144 Table 2-18. Cost and Number of Free Books Sent to all Educational Divisions,1992 .........................................145 Table 2-19. Examples of Prices of Textbooks, Workbooks, and Teachers' Guides, 1991 .........................................146 Table 2-20. O/L Performance, 1991 ..................................... 147 Table 2-21. O/L Performance, 1992 ..................................... 149 Table 2-22. Candidate Performance at A/L by Language of Instruction,1992 .........................................150 C: Regional Comparisons of Participation in Secondary Education ......................... 151 ANNEX 3: HIGHER EDUCATION AND RESEARCH A: Miscellaneous Tables Table 3-1. Resource Allocations for Education and Training 1971 and 1989 ............ 152 Table 3-2. Number of Students Enrolled by University and Faculty, 1986/87-1990/91 ...........................................153 Table 3-3. Affiliated University Colleges .................................. 154 Table 3-4. Professional Institutions with Qualifying Equivalent Graduate Programs ........................................155 Table 3-5. Private Sector Higher Education Institutions .......... 155 Table 3-6. Allocation of the Government Grant Recurrent Expenditure, 1991 ............ 156 Table 3-7. University Recurrent Unit Costs for Undergraduate Students, 1986 and 1990 .................................. 157 Table 3-8. Recurrent Faculty Expenditure, 1987-89 ........................... 158 Table 3-9. Unit Allocations,1991 ...................................... 159 Table 3-10. A/L Marks of Candidates Admitted to and Rejected from University, 1988/89........................159 Table 3-11. Pass Rates for Selected Undergraduate Courses 1988/89 ................. 160 Table 3-12. Research Institutes not Affiliated with the Ministry of Education and Higher Education ............................... 161 B. The Elements of Successful Research .........................................162 ANNEX 4: TECHNICAL AND VOCATIONAL EDUCATION AND TRAINING Table 4-1. Enrollment in MainTVET .................................... 164 Table 4-2. Enrollment in Craft and Technician Programs in Public Institutions by Field of Specialization, 1991 ............................ 165 Table 4-3. Capital and Recurrent Costs for Public TVET iii Training, Selected Years . ..........................................166 ANNEX 5: EDUCATION EXPENDITURE AND FINANCE A: Miscellaneous Tables and Figures Table 5-1(a). Government General and Education Expenditure 1982-91 (Current Prices) ...........................................168 Table 5-1(b). Government General and Education Expenditure 1982-91 (Constant 1982Prices) ........................................168 Figure 5-1. Government Expenditure, 1982-91 .............................. 169 Figure 5-2. Education Expenditure, 1982-91 ................................ 169 Figure 5-3. Percentage of Government and Education Expenditure to G D P, 1982-91 ................................................170 Table 52(a). Public Investment for Education 1992-96 .......................... 171 Table 5-2(b). MOEHE Capital Budget by Project, 1992 ......................... 173 Table 5-3. Budget and Actual Education Expenditure, 1987-91 .................... 173 Figure 5-4. Structure of the Recurrent Budget for Education, 1992 .................. 174 Table 5-4. Central and provincial Education Budgets, 1991 and 1992 ................ 175 Table 5-5. MEOHE Budget by Program and Project, 1991 and 1992 ................. 176 Table 5-6. Recurrent Expenditure of the Provinces on General Education, 1990-92 .........................................178 Table 5-7. Recurrent Unit Costs by Provinces, 1991 ........................... 180 Table 5-8. Annual Increase in Teachers and Salaries, 1988-92 ..................... 180 Table 5-9. Cost Projections by Education Level with and W ithout Teacher increase, 1991-2000 ...................................181 Figure 5-5. Cost Projections for General Education Different Scenarios, 1991-2000 .......................................182 Table 5-10. Teacher Numbers and Annual Salaries by Education Level, 1985-92 ........183 Figure 5-6. Teacher Salaries, 1985-928 ....................................185 Table 5-11. Education Recurrent Expenditure, 1992 ........................... 185 Table 5-12. Recurrent Expenditure and Unit Costs by Education Level, 1991 and 992 ......................................186 Table 5-13. Number of Students in Government Schools 1985-92 ................... 187 Figure 5-7. Unit Cost by Education Level, 1991 and 1992 ....................... 189 Table 5-14. Education Expenditure as a Share of the Government Budget and of GDP and Unit Costs as a Share of per Capita GDP in Selected Asian C ountries . . . . . . . . . . . .. . . .. . . . . .. . .. . .. . . . . . . . . . . . . . . . . . . . . . . . . 190 Table 5-15. Recurrent Unit Cost by Type of School, 1991 ....................... 191 Table 5-16. Provincial per Capita Income and Selected Education Indicators,1991 ..........................................191 Table 5-17. Recurrent Expenditure on Higher Education, 1987-92 .................. 192 Table 5-18. Enrollment and Cost Estimates for Higher Education, 1991 ............... 192 Table 5-19. Higher Education Enrollment and Cost Projections, 1991-2000 ............. 193 Table 5-20. Enrollment Projections by Education Level, Base Run, 1991-2000 . ..... ..... ...... ......... ......... .. .. ..... ... .. .. .194 Table 5-21. Enrollment and Cost Projections by Education Level, 1991-2000 ................................................196 Table 5-22. Enrollment and Recurrent Cost Projections by Education Level, with Quality Improvement, 1991-2000 ........................ 197 Table 5-23. Recurrent Cost Projections for General Education with and without Efficiency Improvements, 1991-2000 ......................... 198 Table 5-24. Recurrent Cost Projections for General Education iv with and without Improving Teacher Utilization, 1991-2000 ...................... 199 Figure 5-8. Enrollment Projections by Level, 1991-2000 . . . . . . . . . . . . . . . . . . . . . . . . 200 Table 5-25. Recurrent Cost Projections for General Education with and without Improving Teacher Utilization, 1991-200 . . . . . . . . . . . . . . . . . . . . . . 201 B. MOEHE Budget Details Table 5-26. Education Cost by Level, 1991 and 1992 .......................... 202 Table 5-27. Estimated Budget of MOECA of Examinations and Publications Departments, 1991 and 1992 ................................. 203 Table 5-28. MOEHE Recurrent Budget by Type of Expenditure, 1992 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .204 Table 5-29. MOE Recurrent Budget by Type of Expenditure for MOEHE and Provinces, 1992......................................205 C. Teachers Employed ...................................................206 Figure 5-9. Age Profile of Teachers by Gender, 1991 .......................... 206 Figure 5-10. Teachers' Qualifications, 1988 and 1992 .......................... 208 Table 5-30. Teachers by Qualifications and Provinces, 1991 ...................... 209 This report was prepared by Paul Blay, team leader; Mohammed Allak, econonist (enrollment projections, costs and financing, and related issues); Linda Dove, senior general educator (primary and secondary education); Josephine Hykin, senmor higher education and science and technology specialist (university subsector); and Jan Segerstrom, senior technical educator (technical and vocational education and training subsector). Annex 1 sections were provided by Professor Betsy Balzano, a consultant financed by the Asian Development Bank (science education), and Terence Kelly, labor market consultant in the Ministry of Policy Planning, Sn Lanka (labor market description). The main nussion took place in September-October 1992. Department Director Paul Isenman, Economic Adviser Sadiq Ahmed, and Division Chiefs Roberto Cuca and Barbara Herz were the managers involved. Peer reviewers were Messrs A. Van Adams, Frank Farner, Donald Holsinger, and Wiliam Rees. The World Bank wishes to express its deep appreciation of the time and effort many people in Sn Lanka devoted to working with the team responsible for preparing this report, and to commenting on drafts. In particular we would like to thank many officials of the Ministry of Education and Higher Education and of the Ministry of Policy Planning and members and staff of the National Education Commission, the Tertiary and Vocational Education Commission, the University Grants Commission, the National Institute of Education, the Departments of Examinations and Educational Publications, and many schools, universities, and colleges in many parts of Sn Lanka. The information in the report largely comes from them, as do many of the report's most useful insights. Any mustakes are the responsibility of the World Bank/Asian Development Bank team. V SRI LANKA: SOCIAL INDICATORS YE AR 1960 1965 1970 1975 1980 1985 1990 1991 1992 Human Resources POPULATION -millions- 9.9 11.2 12.5 13.5 14.7 15.8 17.0 17.2 17.4 Population Female - % of Pop. - 47.8 48.2 48.0 48.4 49.0 49.4 49.7 49.7 49.8 Population Male -% of Pop.- 52.2 51.8 52.0 51.6 51.0 50.6 50.3 50.3 50.2 Urban Population -% of Pop.- 17.9 19.9 21.9 22.0 21.6 21.1 21.4 21.6 21.8 Population Growth Rate .. 2.5 2.1 1.6 1.8 1.5 1.4 1.1 1.1 Urban Pop. Growth Rate .. 4.5 4.0 1.7 1.5 1.0 1.7 2.1 2.0 Crude Birth Rate -per 1000 pop. - 35.5 33.2 29.4 27.8 28.4 24.3 20.2 19.6 19.0 Crude Death Rate -per 1000pop.- 9.1 8.2 7.5 8.5 6.2 6.2 5.8 5.8 5.7 Total Fertility Rate -birth per woman- 5.3 4.9 4.3 3.9 3.5 2.9 2.4 2.3 2.2 Life Erpectancyat Birth. Total -years- 62.3 63.9 64.7 66.0 68.1 69.8 71.1 71.4 71.6 Life Erpcctancyat Birth. Female -years- 62.1 64.5 65.6 67.5 70.0 71.9 73.3 73.6 73.9 Life Erpectancyat Birth. Male -years- 62.5 63.4 63.8 64.6 66.2 67.8 69.0 69.3 69.5 * of Married Female Using Contraception .. .. .. 33.0 .. .. Age DependencyRatio 0.8 0.8 0.8 0.8 0.7 0.6 0.6 0.6 0.6 LABOR FORCE -millions- 3.6 3.9 4.3 4.8 5.5 5.9 6.4 6.5 6.6 In Agriculture - % of Total- 56.6 56.0 55.3 54.3 53.4 .. In Industry -% of Total- 13.4 13.9 14.4 14.2 13.9 .. In Services -% of Total- 30.0 30.1 30.3 31.5 32.72.. Labor Participation Rate. Female -%- 18.6 18.6 18.1 18.6 20.2 19.9 19.6 19.7 19.8 Labor Participation Rate. Male -%- 51.7 50.9 50.2 50.5 52.8 52.8 53.2 53.4 53.6 Investment in Human Capital - Health Expenditure in Health -% of GDP- .. .. .. 2.2 2.3 1.7 Population with Access to Local H. Care - - .. .. .. .. .. .. Pop. per Physician 4493.0 5817.6 5903.8 5900.0 7171.8 5516.2 Pop. per Nurse .. 3219.1 .. .. .. 1288.4 Pop. per Hospital Bed 318.6.. 331.5 300.0 339.79.. Infant MortalityRate -per 1000live births- 69.4 62.6 53.2 43.8 34.4 24.8 19.4 18.5 17.6 Babies with Birthweight 2500+ grams - %- .. .. .. .. .. 72.0 Births Attended by Health Personnel - % - .. .. .. .. .. 87.0 Under 5Deaths per 1000 Lives .. .. .. .. .. NA 24.0 23.0 22.0 Under 5 lamunized. Against Diphteria - - .. .. .. .. .. 64.0 Under 5 Inmunized. Against Measles - - .. .. .. .. .. 18.0 Under 5 Malnourished - 9 - .. .. .. ..47.5. . . Maternal Mortality Rate -per 100,000 live births- .. .. .. .. 90.0 .. Pop. with Access to Fresh Water -%- .. .. 21.0 19.0 .. 40.0 60.0 Rural Pop. with Accessto Fresh Water -- .. .. 14.0 13.0 .. 29.0 80.0 Urban Pop. with Access to Fresh Water - % - .. .. 46.0 36.0 .. 82.0 55.0 Daily Calorie Intake .. 2171 2371 2127 2170 2549 Noe - uot avaaable Sau: Westd Bank Socal Indicaton vi EXECUTIVE SUMMARY Background and Overall Strategy 1. Sri Lanka's educational sector presents a paradox. On the one hand are its great successes: high levels of literacy and of school participation and the good general education provided by several excellent schools and higher education institutions. Educational achievement, for women as well as men, has contributed greatly to the country's remarkable health and demographic indicators, and to developing a relatively diversified economy. On the other hand many people with academic qualifications are unemployed, and employers complain that they cannot recruit people with appropriate education, training, or attitudes to work. These facts suggest that, apart from a few well-known, extremely good (mostly nationally administered) schools and a small number of high- quality public schools, the education system does not provide as good value as it could. The challenge now is to go beyond the impressive achievements to date: to transform the education system into one that will be more appropriate for the country's high aims for its people, and more supportive of economic liberalization and growth. 2. Girls participate in education equally with boys, and women participate freely in the labor force. However, unemployment of women is particularly high, and jobs held by women are typically lower paid. Sri Lanka could do much more to improve access to training and employment for women. Such efforts would boost economic productivity, contribute to further progress in health and education, and reinforce trends to even slower population growth. Macro-economic context 3. Sri Lanka is moving towards putting in place a set of macroeconomic policies that will encourage economic expansion and growth of employment in a variety of occupations. During the 1980s it started to modernize its economic policy framework, and in 1989 embarked on serious economic restructuring efforts. It reformed its earlier stop-go approach to economic management, adopting tighter financial policies; it started to rationalize and to privatize the public sector; improved trade policies; and created an environment in which private investment (including foreign and export-oriented private investment) could flourish. It also started to improve poverty programs. These changes have led to strong GDP growth of about 4 percent pa in recent years. With the East Asian NICs as its avowed model (although economic management policies have some way to go to reach that model) Sri Lanka has become the largest exporter of manufactured goods, per capita, of all low income countries. Sri Lanka is indeed unusual in having both a strongly growing export sector and low income levels, although social indicators are also typical of a higher income country. 4. Significant structural impediments remain to economic growth, and fiscal adjustment has been set back in recent years by expenditure control problems. However, if the Government follows the policies it has set itself for 1994-96, prospects for medium and longer term economic growth are good. To ensure a solid foundation for growth and development, the authorities have adopted a strategy which continues to emphasize prudent demand management and appropriate fiscal, monetary and exchange rate policies; the structural reform process will continue to foster the creation of an outwardly-oriented, competitive private sector, and a reduced role for the public sector. 5. Attaining the objectives will require further strengthening of the private sector's economic role, and greater domestic and foreign private investment. While agricultural performance can increase through diversification and efficiency gains, especially if fostered by policy changes to red::-.e distortions in factor and product markets, the necessary growth in production and employment can only be e...pected in the medium and longer terms from industry, especially from the formal industrial sector, and from its export-oriented sub-sector. The successful growth in recent years has largely been in labor-intensive export industry requiring a relatively low-skilled and low-wage work force, particularly in garments. Future employment growth is likely to come 2 in the near term from further investment in export oriented industry; in the longer term, however, to sustain this growth will require investment to diversify the industrial base. Both the type of product and the level of technology will need to evolve, requiring a more diverse, better educated labor force. 6. These developments will require Sri Lanka to widen the human resource base. As it expands activity beyond low-skill industry, it will need a well-educated labor force, and facilities for flexible training to meet diverse and evolving needs. It will therefore need to concentrate on improving the content, quality and teaching methods of general education, as described below, to give its labor force the educational background needed. Investment in quality general education will offer substantial economic and social returns. 7. The constraining rigidities of the current labor market regulations also need to be reduced. In particular the legislation constraining employers from firing workers discourages entrepreneurial initiative; the constraints are incidentally a disincentive to employers to undertake training. The disincentive effect of labor-market distortions is particularly inhibiting to firms that are not well-established in Sri Lanka, or which seek to make important changes in their production patterns. Issues and Strategy 8. Education and training strategies must meet the highly varied needs of a modern democracy with its high standards of social care; of a development effort oriented towards more efficient economic expansion particularly through technological industry, export processing and tourism; of the overseas employment market; and of traditional economic activities, including agriculture. Strategies must be compatible with the limited public resources currently available, although public spending on education could expand as the economy grows. High unemployment among educated people (Annex 1.A) is not a reason to cut the education system's capacity, but rather to improve its quality, relevance and content. The developing economy will need more rather than fewer well-educated people, but the kind of education needed will change. Thus Sri Lanka ought not only to maintain its high levels of literacy, but also to reinforce the positive value attached to education by improving the quality and relevance of the education children in fact receive. The following issues ought to be addressed as a priority: (a) Wider access to quality primary/secondary education. Improving education quality in ways that provide more equitable access is critical. Sri Lanka has plenty of schools, but the quality of education available to the poor (especially in rural areas) remains generally poor. Education content and methods need to be rethought to reduce rote learning and promote enquiring and adaptable minds capable of responding quickly to rapid technical change and to emerging economic opportunities. (School curricula should meet the needs of the majority who will not go beyond year XI.) Such an education strategy would reinforce macro-economic growth policies, ease discontent among the educated unemployed, and boost the earning capability of the poor. (b) Teachers in primary/secondary education: to achieve wider access to quality education, the teaching service needs strengthening in three ways: (i) More discipline in recruiting. At present teaching absorbs too many of the unemployed who are not equipped to teach effectively; if the teaching profession is diluted further, the quality of education may decline. (ii) Better teacher training (pre- and in-service options) to respond more effectively to priority needs. (iii) Establishment of a teaching service with revised employment conditions including appropriate qualifications for entry and increased salary, but with teachers agreeing to work in disadvantaged areas and to reduce absenteeism (for instance through less leave during term time); 3 (c) Public expenditure: Sri Lanka spends reasonable amounts in total on education and maintains a reasonable balance among different levels of education. But improving quality will require making the most of available resources to emphasize quality. Slower population growth gives a chance to change the pattern of expenditures to favor quality. Welfare payments related to education should also be examined so that schemes such as school meals and school uniforms, if continued, are targeted to those truly in need, thus enabling more resources to be used to improve quality. Reductions in repetition, particularly in the higher grades, would also free resources to be put to better use. With real economic growth and increases in state revenue, education expenditure should eventually grow somewhat; these increases, if matched by improvements in efficiency, can yield considerable gains in quality of education. (d) Education administration needs to be streamlined and decentralized, and Government needs to decide which administrative levels ought to carry which types of responsibility, whether for finance or for the management of the education system. Management training will be needed for administrators and for school principals. (e) English language instruction needs urgent attention, to improve command of written and spoken English for employment and for more effective education. (f) Private education ought to be encouraged at all levels. (g) Higher education ought to become more demand-driven. Today it remains too supply-driven, so that it produces too few graduates with the skills employers want. (h) Technical and vocational education and training need to be strengthened and rationalized, to respond better to labor market demand and to forge closer links between the training system and employers. Training now also tends to discriminate against women, which reinforces inequality among men and women in the labor market. Employment 9. Since 1960, unemployment among school graduates and the limited productivity of new entrants to the labor force have proven intractable economic and social problems. Recently unemployment has risen steeply: some 1 million people are unemployed, double the number unemployed in 1985, and mostly new entrants to the labor market. The economy has to grow rapidly and change structurally to absorb over 300,000 educated new entrants to the labor force every year. Of the unemployed, only 10 percent have not completed primary school, 45 percent have completed lower secondary schooling, while 30 percent have gone as far as year XI, and 15 percent have upper secondary education. While more girls than boys pass Advanced Level (A/L) examinations and more women than men are functionally literate, the jobs women hold are predominantly unskilled, and a larger proportion of women in the work force is unemployed (the disparity might relate to women's education and skills, since more women than men study arts subjects). The level of unemployment of educated women implies a tremendous waste of human resources. 10. There has been much academic controversy about the nature of unemployment in Sri Lanka: however, it seems that very little is voluntary. Because high-paying jobs are scarce, the private opportunity cost of schooling is low. Some pupils therefore remain in school rather than facing unemployment or low status jobs, and some school leavers may wait for higher status employment, seeing themselves as over educated for the jobs available. Moreover, employers are reluctant to employ university and secondary school graduates because of uncooperative attitudes to work, or because despite their years of education they may lack useful knowledge or skills. Training and education cannot create industrial employment; however, the nature of the education provided is crucial in establishing an environment more conducive to investment and to entrepreneurial activity, leading to increased employment. 4 11. The tendency for Government to recruit unemployed people, particularly graduates, in times of political tension, has an unfortunate effect on both the labor market and the education system. In turning the Government into employer of last resort, it is a disincentive for students to follow more demanding courses that might fit them for private sector employment, and it makes graduates unwilling to accept the requirements of such employment. Primary and Secondary Education 12. Education for most people ends at the latest by year XI. Sri Lanka has high participation in primary and lower secondary education, and aims to enroll most children in secondary education progressively up to year XI. Nonetheless, only a minority will go on to year XIII, and a small minority will reach university. Thus education in years I through XI must emphasize quality of learning for the majority who will not go beyond that level. Most important, the content of that education ought to be relevant to the real lives which people lead: subject content needs to reflect actual day-to-day experience, rather than having an academic bent to prepare for traditional university courses. Experience in other countries has shown that curricula adapted in this way can make a real difference to the learning experience and so to the benefits which the vast majority of people retain from education. 13. The main issues that the country's education system faces include (a) improving the quality and orientation of much of primary and secondary (and tertiary) education to increase educational achievement (particularly in mathematics, science, and languages), trainability and work attitudes, and citizenship values, with school curricula and teaching methods adapted to the needs of the 97 percent who will not go to university rather than the 3 percent who will; (b) strengthening teacher training, teaching methods, the content and availability of teaching materials, and the motivation and management of teachers; (c) ensuring equitable access to good quality primary and secondary education, both geographically and socially - there is a backlog of unmet needs, some schools lack basic facilities, and have untrained or absent teachers; (d) improving knowledge of English for pupils from most state schools, who are handicapped both in the labor market and in higher education; (e) the level of access to upper secondary and higher education, taking into account the lack of further education, training or employment opportunities for secondary school and university graduates; (f) stabilizing the administration structure of primary and secondary education which has changed so frequently that some responsibilities are uncertain and overlapping; (g) making greater use of cost recovery coupled with targeted subsidies for those who cannot pay; and (h) enlarging the role of the private sector. 14. These issues are long-standing and complex. Strategies can only be developed over time. The issues are linked: there is no reason to widen access to upper secondary education unless the quality of the pupil intake, the programs offered, and the pupil outcomes are good enough to justify the public and private costs, while growth in academic courses in upper secondary will be justified only when required to prepare for a growing tertiary education sector. 15. The current rapid reduction in the size of the age group due to falling fertility gives Sri Lanka a rare opportunity, available to few countries, to rethink policies and to redirect spending. Decision makers need to recognize the changing pattern of enrollments, and to readjust their policies accordingly. It will probably also lead eventually to an easing of unemployment. 16. The education system could benefit by introducing a system of objective assessment of educational attainment. As has happened in many other countries, industrialized and other, it is easy for a school system to become isolated, and not to appreciate the strengths and weaknesses of the teaching/learning it provides. This makes it difficult for policy makers to decide how much to invest in education and in what kind of activity. Higher Education 17. Higher education faces serious choices. It has low coverage (less than 3 percent of the age group) and is expanding fast. Will it continue in its present, supply-driven form, producing the same or even higher numbers of graduates who have few scientific or technological skills and who cannot speak an international language, so 5 that they add to the mass of unemployed seeking make-work government jobs? Or will it change to a demand- driven system, emphasizing education which produces graduates and diplomates with the knowledge, trainability and communication skills wanted now or in the future by employers in Sri Lanka and overseas? How will the expanded system be paid for? If it follows its present growth it would take 20 percent of sector spending by 2000 instead of the present, reasonable, 9 percent - the public ptiise cannot afford to pay for such an expansion, so other sources will have to be found, including more contributions from those who benefit. Expansion of the private sector would be one means of responding to demand. 18. Systems for planning, management and financing of higher education and research need reform. Both research and higher education suffer from compartmentalized decision making, and inflexible, inefficient, and unresponsive provision of resources. Sri Lanka needs a higher education funding institution (perhaps a reformed university grants commission) with a quality control system as an integral part of the process, to direct public funds to favor quality improvement and development of teaching and research institutions that can meet the country's needs. Universities need more autonomy. Language Policy 19. Language policy at all levels of education needs careful analysis. Teaching in a child's own language to start with has educational advantages, and the emphasis on national languages is important for cultural and social reasons. However, lack of an international language is widely seen to be a major barrier to access to employment and to higher education. National language education needs supplementing with a well-taught international language from late primary levels, at least for those whose education will go beyond lower secondary, or who will work in the internationally oriented environment of Sri Lanka's industrial economy. A major effort is needed to improve the teaching of English, the main international language in use in Sri Lanka. Public Expenditure 20. The public sector spends relatively little on education and training by international standards, about 3.5 percent of GDP and 8 percent of total public expenditure (see text table 1.1). More needs to be spent on primary and secondary education to address the issues raised above: how can this be paid for? Some economies can be made by a more efficient use of teaching resources (for example, raising the student-teacher ratio, reducing repetition of years XI and XHI), although present trends in teacher recruitment are in the opposite direction. Given the current fiscal situation, recurrent public education spending cannot at present realistically increase significantly in absolute terms. However, given continued real economic growth and as state revenues increase, in the medium term education expenditure can and should grow somewhat, matched by efficiency increases, to achieve the objectives of equity in access to quality education. The increase in the burden on the Government budget would be less if means can be found of increasing private education, and increased payments from the community and parents in one form or another. 21. Similarly, expansion of higher education, if it is of the right kind, needs to be paid for, and quality improvement in higher education will also require spending. Methods have to be found to raise revenues, including by a judicious use of private higher education and be addressing cost recovery issues, while ensuring that qualified poor students are not excluded from university by financial constraints. Growth in Enrollment 22. Expenditure is affected most of all by the size of the education system and the numbers employed. Secondary enrollment, already high, will and should grow, and universities (less than 3 percent of the age group) are expanding. Already most of the age group finish year VIII, some 80 percent enter year IX, and an increasing proportion go on to year XI, when students sit the O/L examination. However, only 20 percent enter upper secondary education, while only 20 percent of those with the requisite four passes in the A/L examination go to university. Despite the demographic changes that are reducing numbers in primary education, the numbers now coming through lower secondary would lead enrollment in upper secondary to grow. In addition, the social desire 6 for higher education will put pressure for further expansion on upper secondary and higher levels. What levels of participation in secondary and higher education are appropriate? As important as the absolute size of participation, in what type of education should growth occur? Sri Lanka needs to analyze these issues in depth, examining different strategies in terms of financial and social cost, and their benefits to the economy and to society. Then it can plan for rational growth that allows enough money for the education provided to be of appropriate standards and content. Recurrent Spending 23. Recurrent education spending is divided approximately into 38 percent *for primary, 52 percent secondary, and 9 percent university education: these are reasonable allocations, with the relatively high spending on secondary education and the low university proportion reflecting the comparatively high secondary participation and low university enrollment. Nonetheless, Sri Lanka could reallocate funds within the sector, through improved efficiency and increased private expenditure, and especially because the age group now in primary school is getting smaller (text table 1.2), a trend that will soon make itself felt in secondary education. The authorities thus have scope to free resources and use them for priority spending within the sector. Expensive subsidy schemes, such as school meal vouchers and free uniforms, which have universal coverage and cannot focus resources on the educational needs of disadvantaged children, cost about SL Rs 3.2 billion in 1993, 30 percent of the total recurrent education budget. These programs should be reconsidered, to target increased expenditure for those in greatest need, and to free resources for use to improve education quality. 24. The rapid growth of expenditures on salaries, despite the low individual salaries, is a major cost issue. Too many teachers have been recruited, too rapidly, and with inadequate training. This prevents the system from benefiting from the savings that demographic factors make possible; it will also lead to serious quality problems. If the teacher recruitment policies of the past few years continue, the salary bill for general education would double by the year 2000, swallowing up all funds for quality and improved individual salaries. The Ministry needs to establish priorities for dealing with current and emerging teacher shortages with existing teachers, and to develop policies to increase teachers' productivity. Indeed, the scope for benefiting from reduced primary school enrollment lies mainly in reducing teacher numbers, since pupil/teacher ratios are relatively low (even though there are not enough teachers in some areas in some subjects), and more than 70 percent of expenditure is for salaries. 25. Yet the low individual salaries would justify an increase in teachers' pay if a means of controlling overall expenditure could be found, and if accompanied by reduction in absenteeism and by better quality work. A desirable change may be the concept of a teaching service, separate from the rest of the public service, with improved pay and employment conditions, but with modifications such as abolition of the right to take leave during term time, and a requirement to serve in a remote area for a certain number of years. Better pay should be related to better productivity overall. If possible it would also be desirable to find ways to link individual rewards to merit. 26. All levels, from primary education through university, have scope to improve resource management and cost-effectiveness. As much as 20 percent of the schools' recurrent budget could be better used by, for example, reducing repetition, reducing teacher absenteeism, and by increasing student-teacher ratios to levels comparable with the best practices in neighboring countries. About 120,000 students repeat year XI to re-sit the O/L examination, of whom only about 30 percent will pass at the second attempt. If, say, 60,000 of the 120,000 had not been allowed to repeat that year, over 2,000 teachers could have been freed to teach other students, so improving quality for all. Public Investment in Education 27. Education investment on physical infrastructure has reasonable priorities, concentrating on improving buildings available to schools (especially primary and lower secondary) in disadvantaged areas. Greater emphasis is needed in future on investment in quality of education, rather than quantity. About 30 percent of the 7 investment program is funded by donors, including IDA (with the $49 million General Education Credit for education management and facilities for rural primary and lower secondary schools), ADB, Sweden and Germany. A project recently approved to be financed by ADB includes constructing and equipping secondary schools in areas where access is at present poor, a building, for the examinations department, and rehabilitating teacher training institutions. Government could usefully re-examine its proposals for investment in technical education, since some existing institutions are under-used and have inadequate programs. Private Education 28. The authorities need to review the role of the private sector in education and training. Development of private universities could provide both an alternative and a challenge to the public sector institutions, without detracting from their importance as the main provider of tertiary education. Legislation to make it easier for private schools to function could reduce pressure on the existing public and private sector schools, and provide more varied choice for students. In the training sector, Government already recognizes that the public sector cannot be sufficiently flexible to respond to all needs, and that there is no need for the state to try to do so: the role of private training providers should expand in coming years. 29. The legislation controlling the activities of the private sector in Sri Lankan education is unduly constraining. Reform needs to allow private schools greater freedom to operate and to expand, and to permit new schools to open without being required to meet impossible tests. If the legislation were to be simplified, the private sector could play a greater role in complementing the public sector in provision of quality education, taking pressure off the public sector. Care must be taken to ensure that any change by which the education policy placed greater emphasis on the contribution of the private sector does not lead to neglect of the public sector, so reducing equity of access to quality education for people from poorer areas or social groups. Technical and Vocational Education and Training (TVET) 30. The East Asian countries which have experienced rapid industrial growth have all had effective vocational training systems. They have close links between TVET systems and employers, who ensure that training responds to their needs and make heavy use of the facilities provided. In Sri Lanka, however, relationships between training and employment are not clear. Analysis does not indicate that people who have attended a TVET institution have better employment chances than those who have not; some employers say that they prefer to train people themselves. There are exceptions: for some employment good training is seen to be an asset; for example, the Institute for Construction Industry Training and Development (ICTAD) estimates that the construction industry training which it has supported have led to noticeable improvements in quality of industry skills. In general, the TVET sector could operate more efficiently than it now does. To meet the needs of the labor market, the Tertiary and Vocational Education Commission (TVEC) has the task of rationalizing the supply side of the system, and of ensuring that training courses respond to employment needs rather than continuing to present what the training institutions have traditionally taught. In addition it would be helpful to develop institutions which can stimulate the demand side of training. Government and the private sector together are in the process of establishing a skills development fund which would fund training for people who need that training for existing or identified employment. Donor Financing 31. If the government is ready to adopt policies and programs to address the issues described above, and recurrent financing mechanisms can be developed (such as improving efficiency and benefitting from parents' willingness to contribute to good quality education through increased roles for cost recovery and private education), donors should consider providing support in areas such as the following: (a) Quality improvement in primary and secondary education, including updating curricula, teacher training and teacher support services. 8 (b) The book subsector, including improving the physical quality of textbooks; the process for writing, designing, and distributing textbooks; and the availability of other books, including perhaps through library development. The private publishing sector's role needs to be emphasized. (c) Institutional development, especially of the decentralized administration and school administration. (d) Restructuring secondary education, including strengthening the examination system; restructuring the school system to separate elementary and secondary schools; and improving and rehabilitating school facilities, especially in disadvantaged areas. (e) Rehabilitation and reform of higher education, including institutional development of quality assurance and control mechanisms, curriculum review and revision linked to the economy's needs; improved teaching and learning methods, especially in practical work and science; assessment and examination procedures; and staff development. Expansion of nontraditional higher education, including the Open University, might also be included. (f) Technical and vocational education and training, including rationalizing the existing public sector training system; establishing a skills development fund to respond to employment needs; and developing systems for assessing training programs, for licensing and certification of courses, and for skills testing and examinations. CHAPTER 1 STRATEGY REVIEW A. Overall Strategy 1.1 Sri Lanka's educational sector presents a paradox. On the one hand are its great successes: high levels of literacy and of school participation and the good general education provided by several excellent schools and higher education institutions. Educational achievement has contributed greatly to the country's remarkable health and demographic indicators, and to developing a relatively diversified economy. On the other hand many people with academic qualifications are unemployed, and employers complain that they cannot recruit people with appropriate education, training, or attitudes to work: apart from the few well-known, extremely good (mostly nationally administered) schools, and a small number of high-quality public schools, the education system does not provide as good value as it could. The challenge now is to go beyond the high achievements to transform the education system into one appropriate for the country's high aims for its people. 1.2 Girls participate in education equally with boys, and women participate freely in the labor force, a considerable achievement in a society with strong traditional beliefs. Unemployment of women is however particularly high, and jobs held by women are typically lower paid: in access to training and employment for women, Sri Lanka still has far to go. Macro-economic context 1.3 Sri Lanka is moving towards putting in place a set of macroeconomic policies that will encourage economic exparision and growth of employment in a variety of occupations. During the 1980s it started to modernize its economic policy framework, and in 1989 embarked on serious economic restructuring efforts. It reformed its earlier stop-go approach to economic management, adopting tighter financial policies; it started to rationalize and to privatize the public sector; improved trade policies; and created an environment in which private investment (including foreign and export-oriented private investment) could flourish. It also started to improve poverty programs. These changes have led to strong economic growth (GDP growth of about 4 percent pa) in recent years. With the East Asian NICs as its avowed model (although its economic management policies have some way to go to reach that model) Sri Lanka has become the largest exporter of manufactured goods, per capita, of all low income countries. 1.4 Significant structural impediments remain, and fiscal adjustment has been set back in recent years by expenditure control problems. However, if the Government follows the policies it has set itself for 1994-96, prospects for medium and longer term economic growth are good. To ensure a solid foundation for growth and development, the authorities have adopted a strategy which continues to emphasize prudent demand management and appropriate fiscal, monetary and exchange rate policies; the structural reform process will continue to foster the creation of an outwardly-oriented, competitive private sector, and a reduced role for the public sector. Objectives for 1994-96 include real GDP growth of about 6 percent per annum, annual inflation reduced to 5.5 percent by 1996, an external current account deficit of 5.5 percent of GDP by 1996, and official reserves of about 5.5 months of imports. 1.5 Attaining these objectives will require a further strengthening of the private sector's economic role, and greater domestic and foreign private investment. While agricultural performance can increase through diversification and efficiency gains, especially if fostered by policy changes to reduce distortions in factor and product markets, the necessary growth in production and employment can only 10 be expected in the medium and longer terms from industry, especially from the formal industrial sector, and within that sector from the export-oriented sub-sector. The successful growth from which Sri Lanka has benefitted in recent years has largely been in labor-intensive export industry, requiring a relatively low-skilled and low-wage work force, particularly in the textile and garments sector. Future employment growth is likely to come in the near term from further investment in export oriented industry; in the longer term, however, to sustain this growth will require investment to diversify its industrial base beyond the present, relatively narrow type of activity. Both the type of product and the level of technology will need to evolve, requiring a more diverse, better educated, and more highly skilled labor force. 1.6 These developments will require it to widen the human resource base. Sri Lanka will need a well-educated labor force, facilities for flexible training to meet diverse and evolving needs. It will therefore need to concentrate on improving the content, quality and teaching methods of general education, as described below, to give its labor force the educational background needed. Investment in quality general education will offer substantial economic and social returns. Labor Market and Employment 1.7 The constraining rigidities of the current labor market regulations also need to be reduced. In particular the legislation constraining employers from firing workers discourages entrepreneurial initiative; it is incidentally a disincentive to employers to undertake training. The disincentive effect of labor-market distortions is particularly inhibiting to firms that are not well-established in Sri Lanka, or which seek to make important changes in their production patterns. 1.8 The tendency for Government to recruit unemployed people, particularly graduates, in times of political tension, has an unfortunate effect on both the labor market and the education system. In turning the Government into employer of last resort, it is a disincentive for students to follow more demanding courses that might fit them for private sector employment, and it makes graduates unwilling to accept the requirements of such employment. 1.9 Since 1960, unemployment among school graduates and the limited productivity of new entrants to the labor force have proven intractable economic and social problems. In the last decade unemployment has risen steeply, especially among the more educated (see Annex 1). Almost 1 million people are unemployed, most of them new entrants into the labor market, which is double the number unemployed in the mid-1980s. Of the unemployed, only 10 percent have not completed primary school, 45 percent have lower secondary schooling, while 30 percent have gone as far as year XI, and 15 percent have upper secondary education. A related problem is that while more girls than boys pass the Advanced Level (A/L) examinations and more women than men are functionally literate, the jobs women hold are predominantly unskilled, and a larger proportion of women in the work force is unemployed than of men. The level of unemployment of educated women implies a tremendous waste of human resources, although the disparity might relate to women's education and skill mix, given that more women than men tend to study arts subjects. 1.10 The economy has to grow and change structurally if it is to absorb over 300,000 educated new entrants into the labor force every year. Department of National Planning calculations suggest that annual GDP growth of 6.0 percent, with a total labor force growth of 2.0 percent and a 2.5 percent productivity increase, would permit absorption of the backlog of unemployed over about ten years, but this calculation assumes that a considerable proportion of school leavers, even those with secondary education, would work in agriculture and fisheries, which may not be realistic. 11 1.11 There has been much academic controversy as to whether, and to what extent, some of the unemployed have chosen to wait for white collar jobs father than to take low status jobs. Because high paying jobs are scarce, the private opportunity cost of schooling is low. Some pupils thus remain in school as long as possible rather than face unemployment or low status jobs, and some school leavers may wait for "proper" jobs, seeing themselves as over educated for the jobs available. Moreover, employers are reluctant to employ university and secondary school graduates because of uncooperative attitudes to work, or because despite their years of education they may lack useful knowledge or skills. Training and education cannot create industrial employment; however, the nature of the education provided is crucial in establishing an environment more conducive to investment and to entrepreneurial activity, leading to increased employment. Issues and Strategy 1.12 Education and training strategies must meet the highly varied needs of this modem democracy with its high standards of social care; of a development effort oriented towards more efficient economic expansion particularly through technological industry, export processing and tourism; of the overseas employment market; and of traditional economic activities, including agriculture. Strategies must account for the fact that technical change is happening so fast that education must form enquiring, adaptable minds rather than training people in fixed skills. Strategies must be compatible with the limited public resources currently available, although public spending on education at all levels could expand as the economy grows. High unemployment among educated people (Annex 1) is not a reason to cut the education system's capacity, but rather to improve its quality, relevance and content. The developing economy will need more rather than fewer well-educated people, but the kind of education needed will change. Thus Sri Lanka ought not only to maintain its high levels of literacy, but also to reinforce the positive value attached to education by improving the quality and relevance of the education children in fact receive. In particular education should promote enquiring, adaptable minds capable of responding quickly to fast technical change and emerging economic opportunity. Such an education strategy would reinforce macro-economic growth policies, ease discontent among the educated unemployed, and boost the earning capability of the poor. 1.13 Education for most people ends at the latest by year XI. Sri Lanka has extremely high participation in primary and lower secondary education, and aims to enroll most children in secondary education progressively up to year XI. Nonetheless, only a minority will go on to year XIII, and a small minority - currently less than 3 percent of the age group - will reach university. Thus education in years I through XI must emphasize quality of learning for the majority who will not go beyond that level. Most important, the content of that education ought to be relevant to the real lives which people lead: subject content needs to reflect actual day-to-day experience, rather than having an academic bent to prepare for traditional university courses. Experience in other countries has shown that curricula adapted in this way can make a real difference to the learning experience and so to the benefits which the vast majority of people retain from education. 1.14 The main issues that the country's education system faces include (a) improving the quality and orientation of much of primary, secondary and tertiary education in terms of educational achievement (particularly in mathematics, science, and languages), trainability and work attitudes, and citizenship values; (b) adapting school curricula and teaching methods to the needs of the 97 percent of the population who will not go to university rather than the 3 percent who will; (c) ensuring equitable access to good quality primary and secondary education, both geographically and socially - there is a backlog of unmet needs, some schools lack basic facilities, and have untrained or absent teachers; (d) improving 12 knowledge of English for pupils from most state schools, whose poor command of an international language handicaps them both in the labor market and in higher education; (e) the level of access to upper secondary and higher education, taking into account the lack of further education, training or employment opportunities for secondary school and university graduates; (f) stabilizing the administration structure of primary and secondary education which has changed so frequently that some responsibilities are uncertain and overlapping; and (g) enlarging the role of the private sector. 1.15 These issues are long-standing and complex and will need time to resolve. They are also linked: there is no reason to widen access to upper secondary and higher education unless the quality of the pupil intake, the programs offered, and the pupil outcomes are high enough to justify the public and private costs. The current rapid reduction in the size of the age group due to falling fertility gives Sri Lanka a rare opportunity, available to few countries, to rethink policies and to redirect spending. Public Expenditure 1.16 The public sector spends relatively little on education and training by international standards, about 2.5 percent of GDP and 8 percent of total public expenditure (see table 1.1). More needs to be spent on primary and secondary education to address the issues raised above: how can this be paid for? Some economies can be made by a more efficient use of teaching resources and a reduction in pupil repetition in years XI and XIII, which would mean the system could operate with fewer teachers (although there is at present rapid teacher recruitment). Given the current fiscal situation, recurrent public spending on education cannot realistically increase significantly now in absolute terms. However, in the medium term as state revenues increase, education expenditure needs to grow somewhat, if matched by efficiency increases, to achieve the objectives of equity in access to quality education. Expansion of higher education, if it is of the right kind, needs to be paid for, but not necessarily by the state: however, quality improvement in higher education will require spending. 1.17 Sri Lanka has an opportunity to reallocate funds within the sector, through improved efficiency and increased private expenditure, and especially because the age group now in primary school is getting smaller (table 1.2), a trend that will make itself felt in secondary education in years to come. The authorities thus have scope for taking steps to release resources that could be used for priority spending within the sector. Resources could also be obtained through improved efficiency and increased private expenditure. More money must be spent in many areas: there is a backlog of unmet needs, and some schools lack the most basic facilities. The authorities need to concentrate on redirecting resources to increase social and geographical equity; to improve quality at all levels; to improve science and language teaching, especially English as a second language; and eventually to increase the coverage of upper secondary and higher education. 1.18 Unfortunately, the authorities are not taking the opportunity to shift resources. The scope for benefiting from reduced primary school enrollment lies mainly in reducing teacher numbers, since pupil/teacher ratios are relatively low (even though there are insufficient teachers in some areas in some subjects), and more than 70 percent of expenditure is for salaries. However, rather than reducing employment, the government has been hiring many teachers, which will lead to both lasting recurrent cost increases and enduring problems with quality; the expansion also makes it more difficult to increase the level of individual teacher salaries, which is uiduly low. Rapid expansion is also taking place in higher education enrollment, without analysis of the cost and financing implications (table 1.4). The free school uniform program is adding to general education expenses without compensating benefits to educational quality. This report examines these issues in detail. 13 B. General Education 1.19 Until recently, Sri Lanka's school system, after 400 years of colonialism, was sharply dualistic. A small number of schools provided academic education in English for the future professional and administrative elite, while most of the relatively few children who attended school were in local- language elementary schools. In the last fifty years that small system has been progressively transformed to a large one with open access. Education is free from primary through university, although not compulsory after age 10. The state-financed school system provides school places at the primary level to practically the whole population, and places at the secondary and upper secondary levels are widely available. The language of instruction is the pupil's home language, and there is a common curriculum in the basic cycle. Textbooks are free at the primary and lower secondary levels, although not always fully available, and must be bought at relatively low prices for A/L. Three groups of schools receive public funds, providing schooling for years I though XIII (roughly ages 5-19): the provincially administered general system, the nationally administered "National Schools", and a small number of privately-run schools, mostly in urban areas. The Role of Schools 1.20 Sri Lanka needs to revise its teaching-learning processes. The role of schools in preparing the next generation and precisely what learners need to learn for the future are questions that challenge education systems worldwide. Learning processes are now as important as what is learnt, which quickly become obsolete in a fast-changing world. Modern education requires scientifically literate, culturally sensitive teachers and appropriate teaching methods. In an economy that emphasizes international relationships in tourism and industry, language skills, especially English, are vital. Equality of educational opportunity requires not merely access to schools, but access to the best service schools can offer in terms of inputs, processes and learning outcomes, compatible with the resources available. Schools can no longer only teach minimal levels of literacy, numeracy, and traditional school subjects; secondary schools must do more than promote memorization for examinations, and must try to reverse the negative work ethic and habits of which employers complain. Assessment and Educational Attainment 1.21 The education system could benefit by introducing a system of objective assessment of educational attainment. As has happened in many other countries, industrialized and other, it is easy for a school system to become isolated, and not to appreciate the strengths and weaknesses of the teaching/learning it provides. This makes it difficult for policy makers to decide how much to invest in education and in what kind of activity. 14 Table 1.1 SRI LANKA EDUCATION SYSTEM: COST AND FINANCING Percent Percent of Unit recurrent cost (percent of GDP Government of per capita GDP) spending Primary Secondary Higher Total spending on education Sri Lanka 1993 3.8 8.1 - - - in 1991 - - 7.7 10.9 85.0 1991-1993 average 3.2 7.6 - - - Other countries: Bangladesh 1.5 10.3 6.4 30.0 244.6 (1989-90) China 3.3 7.8 9.2 27.6 243.3 Korea 3.4 15.6 16.5 23.4 70.6 Malaysia 3.4 16.0 14.1 21.3 190.3 Nepal 6.0 9.6 9.0 13.5 249.0 Recurrent spending on education Percent Percent SL Rs mn Growth real of GDP recurrent (current) educn exp Gvt exp (% p.a.) Sri Lanka 1989 2.6 11.6 6,612 12.5 1990 2.7 11.9 8,529 5.2 1991 2.4 9.1 7,951 4.8 1992 2.7 11.7 10,533 18.9 1993 2.5 10.9 11,211 -4.7 Composition of recurrent education spending (1991) (percent of total recurrent education spending) By level: Primary Secondary Technical Universi- (yrs 1-5) (yrs 6-13) colleges ties 37.8 52.2 1.4 8.5 (percent of recurrent spending on general education) By type of spending: Salaries Supplies Books Repairs, Grants, Other maintnce social exp 69.9 0.5 2.2 0.2 25.0 3.2 Unit costs (recurrent education spending) in 1991 by level Primary Secondary Technical Universi- (yrs 1-5) (yrs 6-13) colleges ties Percent GDP/capita 8 11 31 85 US$ 40 55 217 455 Source: Ministry of Education World Bank Estimates 15 Table 1.2 SRI LANKA EDUCATION SYSTEM: BASIC STATISTICS 1989 1990 1991 1992 1993 1991 1992 1993 Government Schb ,s All Schools Number of student Total 4.06 4.11 4.14 4.16 4.17 4.26 4.29 4.3 (million) Years 1-5 2.09 2.08 2.08 2.02 N/A Years 6-11 1.78 1.85 1.87 1.95 - N/A Years 12-1 0.19 0.18 0.19 0.19 N/A N/A Percentage female Year 1 0.48 N/A 0.49 0.48 N/A Year 6 0.49 N/A 0.50 0.49 N/A Year 9 0.51 N/A 0.51 0.51 N/A Year 12 0 56 N/A 0.58 0.57 N/A N/A Number of schools Total 9,805 N/A 9,998 10,042 10,160 10,520 10,588 10,706 Type 3 4,430 N/A 4,430 N/A N/A Type 2 3,511 N/A 3,581 N/A N/A Type lc 1,372 N/A 1,510 N/A N/A Type la/lb 492 N/A 513 N/A N/A Number of teacher Total 146,974 178,333 170,735 175,813 186,973 177,231 182,756 194,039 (by Years taught - Years 1-5 58,235 71,458 66,980 N/A N/A Mission estimates) Years 6-11 74,278 91,885 88,675 N/A N/A Years 12-1 14,461 14,990 15,080 N/A N/A Sri Lanka Gross Enrollment Ratio by Gender and Education Level, 1985-1992 (percentage) (Government schools only) 1985 1990 1991 1992 M F T M F T M F T M F T Primary 109 106 108 110 107 109 109 106 107 107 104 105 Secondary Years 6-8 86 88 87 90 92 91 92 95 93 94 97 95 Years 9-ll 72 83 77 81 91 86 77 87 82 79 90 84 Total yrs 6-11 79 85 82 86 92 89 85 91 88 87 93 90 Years 12-13 17 24 20 24 33 28 24 34 29 23 33 28 Total yrs 6-13 64 70 67 71 78 75 71 78 74 72 79 76 Age Group Population (World Bank projections) 1985 1990 1995 2000 2005 Ages 5-9 1,804 1,940 1,730 1,601 1,583 Ages 10-14 1,716 1,793 1,925 1,716 1,588 Ages 15-19 1,631 1,627 1,775 1,908 1,702 Source: Ministry of Education World Bank Estimates 16 1.22 The widely accepted perception that quality of education is generally poor is difficult to document, since little assessment evidence is available. However, examination results (table 1.3) give an indication that all is not well. Table 1.3 Mean mark in Proportion scoring less 1991 Examination examination than less than 50% O/L Science 30 87 O/L Maths 21 92 A/L Physics 33 83 Chemistry 38 76 Botany 43 68 Zoology 38 82 Maths (Pure) 33 80 Maths (Applied) 40 77 Source: Department of Examinations 1.23 Quality enhancement requires improvements in inputs and in processes: in the physical environment (facilities, equipment and furniture, and consumable materials); in human inputs (teachers, administrators, and advisors); in the ways in which teaching, learning, and pupil assessment are conducted; and in the environment education administration provides. Socioeconomic Stratification 1.24 Because educational credentials are the criteria that determine job access, schools are paradoxically both the sole means of upward mobility for aspiring youth and the main instrument by which existing socioeconomic inequalities are maintained. Pressure on the few, prestigious schools is great, since parents perceive that only they consistently deliver a good education. They view other schools as second- or third-rate, a self-fulfilling prophecy that makes for great inequity in the quality of education available to children from different backgrounds. These perceptions were shared by the employers surveyed in the Study of Education-Employment Linkages (Marga Institute 1992), who attached great importance to the school attended when choosing candidates for employment. 1.25 The structure of the school system tends to perpetuate the differences. The educational outcome from the schools that teach from years I to XI (type 2), and from those that have classes I-XIII, but few science facilities (type 1C), seems to be worse than that of the generally better equipped type 1A and lB schools. Yet social and political pressure to increase secondary enrollment and to have upper secondary education available in all population centers is leading to the schools being "upgraded" to types 2 and 1C. The difference in quality between types of school is exacerbated by the growth of secondary classes in rural schools that are too small to provide a worthwhile education. 17 Language Policy 1.26 Language policy needs careful analysis. Teaching in a child's own language to start with has educational advantages, and the emphasis on national languages is important for cultural and social reasons. However, lack of an international language is widely seen to be a major barrier to access to employment and to higher education. National language education needs supplementing with a well- taught international language from late primary levels, at least for those whose education will go beyond lower secondary, or who will work in the internationally oriented environment of Sri Lanka's industrial economy. A major effort is needed to improve the teaching of English, the main international language in use in Sri Lanka. Particular emphasis also needs to be put on improving access to English teaching for those in disadvantaged schools, since they are currently placed at even more of a disadvantage by the poor quality of English language training available to them. The authorities could usefully examine whether to require a pass in English at 0 level for entry to year 12. The prohibition on teaching in English should be lifted. Teacher Recruitment and Employment 1.27 Teacher recruitment is having serious negative effects by lowering the average level of qualifications and experience, because large numbers of untrained and underqualified people are being brought into the system (although the most recent recruits are graduates). An attempt is being made to upgrade the newly recruited staff through distance learning, which is working well. However, the residential in-service training system would be overloaded if it were to try to give them more detailed training, as the newly recruited teachers become eligible for such training after two to four years experience. Careful attention is needed to planning the upgrading of teaching staff and to ensuring that in-service training is as cost-effective as possible. 1.28 The conditions by which teachers are employed, and the manner in which they are enforced, need modification. They allow teachers to be absent from their classes for up to 30 percent of the school year, they do not provide incentives or other methods of ensuring that teachers stay working in difficult areas, and there are inadequate incentives to stimulate excellence. Teachers who fail training courses are employed as if they had passed. Salaries are low: a starting teacher is at the level of an unskilled worker. Government is considering introducing a teaching service, which could be a useful method of improving teachers' employment conditions: however, in introducing such a change they must ensure that they address the other employment issues, for example negotiating that teachers would give up their right to take leave in exchange for the increased pay. Teacher Training Action Plan 1.29 In view of the vital need to improve the skills of teachers, the quality of education and the equity of access, a detailed review of in-service and pre-service teacher training policy and priorities is urgently needed. Not all teachers need the same kind of training, and the two-year courses in the teacher colleges may not be appropriate for everyone. Some subjects, for example, mathematics, English, and science, have higher priority than others. What level of resources should be spent on teacher training? Under the ongoing General Education Project financed by the International Development Association (credit 2072-CE), the government has undertaken to prepare a teacher training action plan. Such a plan needs to be based on a thorough review, to develop policy that can benefit from donor support, such as that which the Asian Development Bank is about to provide to upgrade the teacher colleges. 18 Subsidies 1.30 The social stratification of the school system is modified by schemes such as the competitive year V scholarship, given at the end of primary education, which allows a few poor high-flyers access to good schools and subsidizes them through upper secondary school. The Mahapola scholarship scheme provides grants to poor university students; there is also a subsidized university student loan scheme. These schemes are targeted. However, other schemes, such as school meal vouchers and free uniforms, although they aim at making access to education more equitable, have universal coverage, providing small sums to all children, and cannot focus resources on the educational needs of disadvantaged children. They are both costly and ineffective. Certificates 1.31 Because employers, both public and private, can choose from large numbers of job applicants, the certificates awarded for passing public examinations at the end of secondary and upper secondary school have become minimal requirements even for unskilled jobs. As more school leavers gain certificates and as youth unemployment grows, these passports to employment are devalued. 1.32 Despite the educational investments they have made, the ten- to fifteen-year-olds who quit before completing secondary school tend to be perceived by society as failures, destined to a lowly socioeconomic status. The many pupils who have acquired adequate knowledge for the work place by the age of sixteen need a means to demonstrate their educational achievement, without treating them as failures if they have not attained entry to upper secondary school. This is especially true since some evidence suggests that pass rates in public examinations are low partly because the examinations are too academic. Similarly, sixteen- to twenty-year-olds who complete lower, or even upper, secondary school, but who leave without passing Ordinary Level (O/L) and A/L examinations also have little to show despite having attended school for eleven or more years of their lives. As more children gain access to years IX-XI without a compensating increase in the availability of upper secondary and higher education, pressures on society increase as more pupils with O/L certificates are forced out of school, to join a growing, frustrated underclass: a different form of certificate system would be more equitable. Educational Change 1.33 The education system has been a focus of political debate and the subject of numerous, high- profile reforms. In the name of enhancing educational access, relevance, and quality, successive governments have restructured the school and examination system. Made with the best of intentions, these disruptive changes have prevented the adequate follow through of useful measures. The more protracted, difficult task of improving the quality of classroom teaching and learning has not been fully addressed in a sustained fashion. Quality enhancement has now become the most important issue: parents, employers, and the public are increasingly concerned that the schools are not delivering an effective service to young people in terms of readying them for productive employment or of imparting citizenship skills. Whether all those who run the system share this concern is less clear. Public Attitudes 1.34 With universal educational access, some attitudes have developed that hinder reform. Policy debate on change is extremely difficult. All would agree with the aim of quality improvement, but issues of affordability, revenue generation, and private sector involvement as possible means to this end are 19 controversial. The strongly held public view is that free education, from primary school through university, is a fundamental right of every citizen. In addition, dialogue about reducing the teaching force to free funds for higher priority use is difficult, even though the large number of nonessential, inappropriately qualified teachers is detrimental to teaching quality and is exceedingly costly.' To change these public sentiments requires an information program to prepare the public for essential, cost-effective reforms in the system. The efficiency improvements needed are substantial, but must also be within the political powers of government to achieve. Growth in Secondary Enrollment 1.35 Expenditure is affected most of all by the size of the education system and the numbers it employs. Secondary enrollment, already high, will and should grow, and universities (still only 2.5 percent of the age group) are expanding. Already most of the age group finish year VIII, some 80 percent enter year IX, and an increasing proportion go on to year XI, when students sit the O/L examination. However, only 20 percent of the age group enter upper secondary education, while only 3 percent of the age group - and only 20 percent of those with the requisite four passes in the A/L examination - go on to university (currently after a wait of an average 3.5 years, because the universities are overcrowded). Despite the demographic changes that are reducing numbers in primary education, the numbers now coming through lower secondary would lead enrollment in upper secondary to grow. But in addition, the social desire for increased higher education will put pressure for further expansion on upper secondary and higher levels. What levels of participation in secondary and higher education are appropriate? As important as the absolute size of participation, in what type of education should the growth occur? Sri Lanka needs to analyze these issues in depth, examining different growth strategies in terms of their financial and social costs, and their benefits to the economy and to society. Then it can plan for rational growth that allows enough money for the education provided to be of appropriate standards and content. School Development Boards 1.36 The government has recently introduced an important initiative to stimulate community participation in supporting schools by setting up school development boards. These boards, one for each school, are composed of parents, community representatives, and teachers. They manage school development funds, mostly raised from the community, to provide the schools with resources for minor maintenance and other expenditures that they are otherwise unable to meet. They could potentially also improve school performance by strengthening management. The National Education Commission 1.37 Given the issues facing education and training in Sri Lanka, the recent establishment of the National Education Commission is particularly appropriate. The commission's mandate is to examine all policy issues related to the education and training sectors. However, the commission does not have its own capacity for analyzing education statistics and management information. The Ministry of Education's Planning and Statistics Directorate (which already produces good education data) must 1 . Of course, the authorities may not see expenditure on teacher salanes as an alternative to spending elsewhere in the sector. Even if economies were to be made on teacher salary expenditures, the resources might not be available for spending on unproved education quality. What is sure is that the current recrnutment places a huge burden on the system. 20 develop its planning capacity to provide all those involved with the elements necessary for policy formulation. Support for education planning is available from the ongoing General Education Project. C. Higher Education and Research 1.38 For many years the universities have strongly resisted expansion, and have grown only gradually. The size of the general education system has, however, generated a demand for university places that has not been met. In addition to the large, unsatisfied demand, the participation rate (about 2.5 percent) is much lower than in comparable developing countries. Currently there is a backlog for entry to university because the system has been slow to catch up from its closure in 1987-89. School levers have to wait one or two years for a place. Table 1.4 University Enrolment Arts/ Engineering CommerceScience Medicine Other Total Universities (exclud- 1987 11,026 1,914 3,462 2,697 1,121 20,220 ing Open Univ) 1991 12,309 2,756 3,474 3,156 1,531 23,226 Open University 1991 - - - - - 12,000 (part time) Affiliated University Colleges 1991 - - - - - 1,364 Source: Ministry of Education/University Grants Commission 1.39 Planning within the higher education system takes place with little overall policy direction and has, therefore, until recently, been short term and protective of the status quo. No effective, formal mechanisms exist nationally or within the institutions for quality monitoring and assurance. Traditionally, the universities have been arts oriented, with inflexible curricula and course structures. Applied research and other contacts with the world of work have been minimal, and practical work in science subjects is inadequate. 1.40 A high proportion (72 percent) of employed graduates work in the public sector. However, students' expectations of a free education leading to public employment can no longer be satisfied and unemployment among graduates is high. The Sri Lankan university graduate comes from a narrow academic elite--less than 3 percent of the age group-and is accustomed to success. The change from being sought after to seeker is not easy to adapt to. For various reasons, including students' perception that the education they received would not lead them to a welcoming labor market, student and staff unrest has been serious and endemic: most universities were closed for two years as the "JVP" terrorist movement interacted with student movements. Research 1.41 Despite the shift toward an industrial base in the past decade, with industry now contributing about 50 percent of exports, industry remains technologically unsophisticated and narrowly based. The lack of technological, managerial, and entrepreneurial skills, together with inadequate training and 21 unfocussed research, contribute to the weakness of the industrial sector. Industry carries out little research, and government research and development centers have few links with their industries. The research centers that do exist lack modern equipment and adequate resources for maintenance. Financing 1.42 More than thirty ministries and departments, besides the Ministries of Education and Cultural Affairs (MECA) and Higher Education and University Affairs (MOHE), have budget allocations for education, training, research, and/or allied services. These allocations include funding for specialized teaching and training centers and research units outside the universities. There has been enormous growth in sector spending outside the main ministries, which raises important questions about the system's overall efficiency and fragmentation. It also explains, to some degree, the apparently low rate of national spending on higher education, which is classified under the MOHE. 1.43 About 9 percent of expenditure on education is for the higher education subsector. The subsector is about 95 percent state funded. It has some foreign aid, but negligible income from endowments and minimal cost recovery. At present all tuition in the regular universities at the undergraduate level is free for Sri Lankan students, regardless of parental income. Some fees are charged for postgraduate studies and overseas students, as well as for the Open University and for external courses at the regular universities, and to a limited degree for teacher training. 1.44 The universities' budget would grow by about 10 percent per year in real terms during 1991-2000 if current university expansion policies continue. If other means of generating resources cannot be found, the share of the universities in the total sector budget would grow from 9 percent to about 20 percent in 2000, without allowing for spending to improve quality. 1.45 Funding is crucial. There is little room for a major increase in public funding for universities, so other sources must be found. In any case, if the option to respond to employment needs is taken, a measure of. the system's responsiveness to demand would be the readiness of students to contribute to the costs of their education. Government needs to think carefully about increasing the role of cost recovery and private provision of higher education. 1.46 The management and financing systems have inhibited development of higher education and research activities, which have responded to ad hoc requests or funding provision, without coordination or consideration of long-term sustainability. Both research and higher education suffer from compartmentalized decision making, and inflexible, inefficient, and unresponsive provision of resources. Sri Lanka needs a higher education funding institution (perhaps a reformed university grants commission) with a quality control system as an integral part of the process, to direct public funds to favor quality improvement and development of teaching and research institutions that can meet the country's needs. Universities need more autonomy. 1.47 The subsector has been characterized by the absence of a national planning framework for higher education and research, and hence of a consistent overall strategy. The management and financing system has imposed a uniformity on higher education that has inhibited diversification. At the same time it has reacted to pressures without proper consideration of long-term sustainability. Research activities have developed in response to ad hoc requests or funding provision, without coordination. Both research and higher education suffer from compartmentalized decision making; excessive bureaucracy; and inflexible, inefficient, and unresponsive provision of resources. 22 Quality, Relevance and Efficiency 1.48 Despite its present difficulties, Sri Lankan higher education includes some centers that consistently produce high-level professional manpower and research. However, the university system has low internal efficiency. Pass rates at the end of the undergraduate cycle in different faculties range from 26 percent to about 80 percent, but average about 60 percent: given the highly selective nature of university entry, pass rates ought to be closer to 90 percent. The high failure rate is costly. Few people are aware of the need to reform the system. Higher education has had a traditional, strong academic emphasis, rather than being linked to the economy's needs. This, however, appears to be changing. In its draft plan for university education, the University Grants Commission (UGC) recognizes that optimizing the use of limited resources and meeting the needs of the economy and of society means that the major objectives of university education must be to meet social and manpower demands. Other encouraging indications of a move to a demand-driven subsector include the introduction of new types of vocationally-oriented establishments (the two-year affiliated university colleges - although they have not been operating smoothly and need a re-examination) and changes that allow arts students to follow employment-oriented studies. Options for the Future 1.49 Higher education faces a choice. Will it continue in its present, supply-driven form, producing the same or even higher numbers of graduates who have few scientific or technological skills and who cannot speak an international language, so that they add to the mass of unemployed seeking make-work government jobs? Or will it change to a demand-driven system, emphasizing the provision of education which produces graduates and diplomates with the knowledge, trainability and communication skills wanted by employers in Sri Lanka and overseas? 1.50 How fast should higher education grow, and in what direction? The choice has immense social, economic and political implications. One target mentioned is enrollment of about 8 percent of the age group, as in some south east Asian countries. This would represent a tripling of the subsector, far more than feasible in the near term or than can be afforded with public funding. * University enrollment is low: industrialization needs a critical mass of people with a good scientific and technological education, yet Sri Lankan industry at present employs few highly educated people. * Large numbers of qualified students cannot find higher education places, but the public sector cannot afford to spend much more on universities. * The temptation to enroll students in university to reduce unemployment must be avoided; increased enrollment in the wrong type of program would only increase graduate unemployment. * Over what period should the growth take place? Which programs should be developed? And most important, how would the enlarged system be paid for? Growth needs to be carefully designed to minimize public spending, to develop realistic funding sources, and to be matched by compensating savings within the subsector. 23 1.51 There are, however, real difficulties in achieving fundamental change in higher education. Little evidence exists that university authorities redognize the txtent of reform necessary, nor that change will receive the high-level political and public support it will need. Other countries have resolved the financing problem by expanding private universities or by charging for attendance at public universities. In Sri Lanka, however, public feeling against charging for university education is strong, and development of alternative funding sources will need strong leadership. The attempt to create a private medical school in the mid-1980s failed following strikes by staff and students. Nonetheless, two small private institutions linked to overseas universities are operating, the Open University charges for its courses, and public universities charge for external courses. D. Technical and Vocational Education and Training 1.52 The East Asian countries which have experienced rapid industrial growth have all had effective vocational training systems. They have close links between TVET systems and employers, who ensure that training responds to their needs and make heavy use of the facilities provided. In Sri Lanka, however, relationships between training and employment are not clear. Analysis does not indicate that people who have attended a technical and vocational education and training (TVET) institution have better employment chances than those who have not; some employers say that they prefer to train people themselves. There are exceptions, and for some employment good training is seen to be an asset; for example, the Institute for Construction Industry Training and Development (ICTAD) estimates that the construction industry training which it has supported have led to noticeable improvements in quality of industry skills. The TVET subsector is mainly an extension of the education sector rather than a system to prepare people for jobs2. In the past, the public sector absorbed most trainees. More recently, as industry has developed and the public sector has become too full, the TVET system has not adjusted to instill those skills industry and other employers require. The system has grown in an uncontrolled fashion because of a lack of policy and guidance that has fragmented the delivery of vocational training and technical education. About thirty ministries offer some kind of technical education or training: at least six provide pre-service courses to train skilled manpower for the economy, while the others mainly provide in-service training for their own staff. 1.53 Awareness that the subsector is not playing an appropriate role has grown slowly. With few exceptions, courses remain unchanged for years, many instructors have not been trained and have limited industrial experience, equipment is often irrelevant and obsolete, and links with employers are weak. Public financing of the system is thinly spread, seriously affecting quality. 1.54 Recognizing that the training system needs reform, the government has established the Tertiary and Vocational Education Commission (TVEC) as an umbrella organization for all technical and vocational education. It is responsible for policy, strategy, and coordination including distributing financial resources, although it has yet to gear up for these tasks. The government has asked the World Bank to help transform the training sector to make it able to respond rapidly and flexibly to employers' manpower demands. This process would require full commitment from the government and from employers, who have little faith in most of the existing system. 1.55 The government still needs to tackle and solve a number of thorny issues, including the TVEC's coordination role and the fact that it reports to a ministry that itself provides training rather than 2. The TVET sector examined in this report excludes agriculture and related training, which is an important subsector in its own right. 24 to a neutral agency, the organization and management of a proposed skills development fund, the distribution of public financing for training in accordance with quality criteria, the rapid strengthening of selected training institutions to meet employers' needs, and the winding up of institutions that have no potential to meet the quality criteria in the foreseeable future. 1.56 A notable feature of the TVET system is the gender disparity in training. Women students tend to follow training courses in skills that are seen as traditionally female, a distortion that is reflected in the labor market. The TVEC needs to adapt its membership and programs to address all these issues. E. Cost and Financing 1.57 The shares of education expenditure in the government budget and in the GDP, 8 percent and 2.5 percent, respectively, are far from excessive when compared with other Asian countries or with similar developing countries. The ratios of unit cost to per capita GDP are well below those in other Asian countries: China, Bangladesh, and India have more than twice Sri Lanka's levels (primary - 8 percent, secondary - 11 percent, and higher education - 85 percent). 1.58 Because the structure of the Sri Lankan school system does not follow the classical division into primary, secondary, and higher education, determining the precise allocation of expenditure among levels of education is difficult. Mission estimates show recurrent expenditure on education (including on schemes such as mid-day meals) in 1991 and 1992 as divided approximately into 38 percent on primary education, 52 percent on secondary education, and 9 percent on university education. The high spending on secondary education reflects the comparatively high secondary participation; the low university proportion reflects the low university enrollment. 1.59 The major cost issues are the rapid growth of expenditures on teacher salaries, which are increasing unit costs in general education, and so preventing the system from benefiting from the savings that demographic factors make possible, the heavy expenditure on untargeted welfare schemes, and the rapid growth in university-level spending. Teacher Recruitment 1.60 If the teacher recruitment policies of the past few years were to continue, the 1992 salary bill for general education would double by the year 2000, and the overall sector budget would increase at an unsustainable rate of more than 6 percent per year. Teacher recruitment should be frozen for the time being, and then confined to the natural attrition level (2 percent per year), and within that to people with specific qualifications. Meanwhile, the MOECA needs to establish priorities for current and emerging shortages and to prepare detailed plans for meeting these shortages with existing teachers. This requires adopting policies that would increase teachers' productivity, such as reducing absenteeism, increasing the teaching load, and taking effective measures to redistribute surplus teachers to schools without teachers. Merit payment systems for teachers might help. Grants and Subsidies 1.61 General education student welfare programs, such as mid-day meals, scholarships, and transport subsidies, together with the new school uniform program, cost about SL Rs 3.2 billion in 1993, 30 percent of the total recurrent education budget. If these programs could be carefully targeted to 25 increase spending for those who need them most, and to free resources to spend on improving the quality of education. University Costs 1.62 Mission projections show that the university budget would grow by about 10 percent per year in real terms during 1991-2000 if current university expansion policies continue. This expansion would have considerable implications for the total sector budget if other means of generating resources could not be found: it would increase the share of the university budget in the total sector budget from 9 percent in 1991 to about 20 percent in 2000, without allowing for the increases that are probably needed to improve quality. Efficiency and Cost Review 1.63 All levels, from primary education through university, have considerable scope for measures to improve resource management and the system's cost-effectiveness. In general education, as much as 20 percent of the recurrent budget could be saved or better used by, for example, reducing repetition in years XI and XIII, and by increasing student-teacher ratios to levels comparable with the best practices in neighboring countries. About 120,000 students repeat year XI to re-sit the O/L examination, of whom only about 30 percent will pass at the second attempt. Many of those who fail the second time will probably have benefited little from their second year at this level. If, say, 60,000 of the 120,000 had not repeated that year, at least 2,000 teachers would have been freed to concentrate on younger students. 1.64 Similar savings can be made at the university level, although not to the extent needed to finance the proposed expansion. At this level, the authorities need to consider cost recovery measures to generate sufficient resources. F. Recommendations and Strategy 1.65 In developing sector strategy, Sri Lanka could concentrate on analyzing the following issues. In primary and general secondary education the priorities are the issues related to quality and relevance of education, and in particular equitable access to quality education. For higher education analysis needs to focus on institutional development to develop mechanisms which will shape the growth of the system towards priority goals and which will favor quality control; for vocational and technical education and training, the rationalization of the sector and a switch in emphasis from supply driven to demand oriented activities. Improved quality and relevance of education will make labor supply more attractive to investors, and facilitate the growth and diversification of the economy. The authorities will have to pay special attention to the nexus of issues related to cost recovery, charging for services, and private sector provision of education and training. Lists of detailed recommendations arising from this study are given in Chapter 6. Quality of General Education (a) Perhaps the highest priority is to improve the competence of the teaching force. The authorities are starting by preparing a teacher training action plan, that includes an intensive program to upgrade the quality of teachers, and rationalization of the various different and inconsistent programs at present available. The plan should cover the content and methods of training, the number of teachers upgraded, and the cost-effectiveness of the training 26 systems adopted. It would probably involve a reduction in the length of training and more flexible systems. Priority must be on upgrading of existing teachers and on introducing new teaching methods. (b) Introducing a system of regular, objective assessment of educational attainment. (c) Questions such as the content of the curriculum and the nature of teaching methods to ensure relevance to the country's needs, teacher administration, pedagogical support systems, teaching materials, and training of principals. (d) Analysis of how to upgrade all aspects of the book sector (textbooks, libraries, and supplementary reading materials) to respond to the needs of a highly literate society. (e) How to improve teaching of English in all levels, with a special emphasis on those in more disadvantaged areas, who are barred by lack of knowledge of English from good access to higher education or employment. To provide an incentive to improve English teaching, as availability of English teachers improves, the authorities could usefully examine whether to require a pass in English at 0 level for entry to year 12. Lifting the prohibition on teaching in English. (f) How to reform the examination system and curricula to link the content of examinations to the knowledge needed in daily life and employment. Equity of Access (g) Measures to improve equity in access to quality primary schools, including better allocation of resources; continuing the present investment in schools in disadvantaged areas, and special attention to the needs of schools in disadvantaged areas while working on quality improvement. (h) Equity and quality issues at the secondary and upper secondary levels, including consideration of a crash program to provide science education in all secondary schools, together with a decision not to upgrade schools in future to type IC, that is, without science A/L facilities. Administration of Education (i) Analysis of the management and administration of the general education system in the light of the decentralization reforms of 1990-92. Defining tasks for administrators at different levels, and preparing job descriptions, qualifications and training requirements. Strengthening the training of school principals. Cost and Financing (j) Analysis of education sector costs and financing mechanisms and the factors that affect them, such as demographic projections, enrollment trends and objectives, sector employment trends, and welfare expenditures. Strategy should have the objectives of allocating resources to quality improvement while controlling overall spending growth. 27 (k) The factors affecting growth in the demand for and supply of secondary, upper secondary, and higher education, leading to a strategy incorporating targets for capacity development at different levels. (1) Making more efficient use of resources in the general education subsector, especially by addressing the various problems relating to teacher employment and compensation and the efficiency of the school system. Private Schools (in) Updating the legislation governing private schools, placing all institutions on a comparable basis, and so maximizing the contribution that parents and others are prepared to make to education by removing the prohibition on opening nongovernment schools if they meet minimal standards. (n) Asking the National Education Commission to examine the role of tutories (examination cranmers) and to seek ways to discourage their expansion and to divert the resources spent on them to the public school system. University Education (o) Defining reforms at the university level to improve the quality, efficiency, and relevance of the existing system. In recognition of the relatively low level of university enrollment, planning increased capacity and output of higher education in line with the economy's needs will be important, partly through technological and other institutes offering nontraditional higher education. The authorities will have to find acceptable methods of paying for the expansion. (p) Establishing appropriate institutions to plan the university system and to finance it in a way that will improve quality and develop those parts of the postsecondary system that respond to priority needs. Expansion of the system should take account of the rate at which quality improvement in secondary education can be expected. Technical and Vocational Education and Training (q) Emphasizing links to employment in the TVET subsector and the responsiveness of training to employers' needs, making employers more involved in the management of training than at present, and focusing more on skill-upgrading than on initial training. A skills development fund is desirable in this context, perhaps financed eventually by a training levy. (r) Rationalizing public sector TVET to reduce the high costs of the present system and to make better use of existing facilities, and reforming the apprenticeship system, including giving employers control over recruitment. (s) Developing policies to reduce gender disparities in TVET. 28 (t) Developing criteria to assess the relative merits of TVET programs, and to underpin systems for licensing and certification of courses and trade examinations. Responsibility has to be assigned for determining and reviewing criteria and for establishing incentives. The Labor Market 1.66 The tendency for Government to recruit unemployed people, particularly graduates, in times of political tension, has an unfortunate effect on both the labor market and the education system. If Government could adopt strategies by which it was no longer the employer of last resort, this would have a beneficial effect on training, education and employment. 1.67 Sector strategies have to take account of the overall imbalance between labor supply and demand, recognizing that unemployment is increasingly concentrated among people with educational qualifications, while there are shortages of many types of skills (see annex A). The system needs to seek the most cost-effective means of matching output to labor market needs. It must also reduce the gender disparities in types of job held and related salary levels, and in unemployment. The number of recognized formal exit points from school to postschool training could be reviewed (to take account of the fact that many people still in fact leave school after grade VIII), and career guidance programs introduced or strengthened. Initiatives in schools could be supported by better mechanisms for collecting labor market information and channeling it to educational planners and training providers. Reforms to labor market systems, such as employment placement and exchange services, are needed, as is a review of the legislative framework of employer obligations and employee protection to remove system-induced disincentives to employment growth where these are not socially or economically justified. In particular the legislation constraining employers from firing workers needs to be reformed both to encourage entrepreneurial initiative and to stimulate hiring of trainees. Donor Financing 1.68 If the government is ready to adopt programs of policy reform in the relevant subsectors to address the issues described above, donors should consider the possibility of identifying a project or projects in support of such areas as the following: (a) Quality improvement in general education, including teacher training; institutional development, especially of the decentralized administration and school administration; and teacher support services. (b) The book subsector, including improving the physical quality of textbooks; the process for writing, designing, and distributing textbooks; and the availability of other books, including perhaps through library development. The private publishing sector's role needs to be emphasized. (c) Restructuring secondary education, including support for updating curricula and reforming the examination system; restructuring the school system to separate elementary and secondary schools; and improving and rehabilitating school facilities, especially in disadvantaged areas. (d) Rehabilitation and reform of higher education, including institutional development of quality assurance and control mechanisms, curriculum review and revision linked to the economy's 29 needs; improved teaching and learning methods, especially in practical work and science; assessment and examination procedures, and staff development. Expansion of nontraditional higher education, including the Open University, might also be included. (e) Technical and vocational education and training, including rationalizing the existing public sector training system; establishing a skills development fund to respond to employment needs; and developing systems for assessing training programs, for licensing and certification of courses, and for skills testing and examinations. 30 CHAPTER 2 GENERAL PRIMARY AND SECONDARY EDUCATION A. The School System Organization 2.1 Improving the quality and equity of education involves rationalizing and strengthening the system's planning and administration. Currently, a number of central government agencies under the Ministry of Education and Cultural Affairs (MOECA) are responsible for formulating general education policy and for aspects of administration. The National Institute of Education is technically autonomous. The Educational Services Ministry, which is part of the MOECA, includes the departments of Educational Publications and Examinations, and the National Library Services Board. The ministries of Planning; Finance; Higher Education and University Affairs (MOHE); Youth Affairs and Sports; and Reconstruction, Rehabilitation, and Social Welfare all have an interest in education policy, as do the various public service commissions. 2.2 Decentralization has been underway for several years. Since 1987 most of the administration of the education system (apart from the limited number of national schools) has been delegated to the Provincial Directorates of Education, which set and implement provincial policies within national guidelines. The provincial directors of education are accountable both to the provincial councils and to the MOECA a confusing duality. In 1992 many administrative functions that relate to the population at large were passed to 285 newly created divisions. Initially the education system will be administered from 200 of these 285 divisions. These divisions were to be grouped into fifty zones for education administration, with each division administering an average of fifty schools (although it appears that the structure is again under review). 2.3 Responsibilities are now shared imprecisely among five levels: the MOECA, provinces, zones, divisions, and schools (and the old districts, approximately three to a province, has not completely disappeared). The MOECA is currently deciding how to allocate functions among the different levels of the administrative structure. The International Development Association General Education credit is financing training in the new administrative procedures. Given the mixed history of administrative reforms, this latest attempt to set up a decentralized system responsive to the needs of the population must be implemented successfully. Further work is needed to define responsibilities, job descriptions, and administrative arrangements. A particularly important issue is to resolve how budgetary control will be implemented. Currently provinces are allotted a block grant for nonsalary expenditures, which means that the central government has little control over detailed expenditure. Provinces are apparently hiring staff without authorization from the central Civil Service Commission. It is not clear what spending decisions will be taken at which level in the new system, nor what mechanisms will exist for central control over public expenditure. Structure 2.4 The official structure of the school system has been changed frequently. Currently, the school years (grades) have a 5+3+3+2 structure, consisting of primary, lower secondary, secondary, and upper secondary (collegiate) levels (annex 2, section A and figure 2-1). Key transition and/or terminal examinations for pupils occur at years V (Bursary and Placement Examination), year XI (O/L), 31 and year XIII (A/L). The complete cycle comprises thirteen years, but many pupils stay in school fifteen or more years and leave in their early twenties. Coverage and Participation 2.5 In 1991, the country's 4.3 million pupils (4.2 million in the public sector) were served by over 10,700 schools, of which 10,160 are public sector, and 186,000 government-employed teachers. The private sector, levying tuition fees but partly subsidized, had fewer than forty schools, mainly in the western province. Some 500 private Buddhist schools (pirivenas) have 23,000 pupils and 6,500 teachers; about 700 state-assisted Muslim schools, following the secular curriculum, are classified as government schools. Coverage is extensive with one school every 3.5 square miles on average, although schools are not always located according to current population distribution. The MOECA needs to conduct school mapping and location planning exercises. 2.6 Sri Lanka is well on its way to achieving universal primary and lower secondary education. Gross participation rates are 103 percent for primary school and 71 percent for secondary school. More than 90 percent of the five to nine age group participate in primary education, nearly 86 percent of ten- to fourteen-year-olds participate in lower secondary education, and about 38 percent of fifteen- to seventeen-year-olds participate in secondary education (Marga Institute 1992, p. 9). The gross enrollment rates exceed the net mainly because of the presence of overage children caused by late entry or repetition. There are a few isolated pockets in poor rural and urban areas where primary enrollment is still not universal, and where dropout rates remain high, while participation may be below enrollment especially in these areas. The government recognizes the need for special efforts in poor areas, which are supported by UNICEF and Swedish aid. 2.7 In 1991, of total enrollment of 4.1 million, more than 2 million pupils were in primary education, 1 million in lower secondary, nearly 850,000 in secondary, and 186,000 in upper secondary. Eighty-one percent of pupils who complete primary school enter year VIII and more than 60 percent continue through year XI and O/L. In other words, about 80 percent of pupils who complete lower secondary, year VIII, can expect to continue and sit O/L at year XI; however, only 20 percent of those who complete year XI go on to year XII. Thus year XI is a major exit point, at which nearly half of the cohort leave the system. Put another way, of a cohort entering the system, some 25 percent leave at or before year V, some 15 percent at or before year VIII, a further 48 percent at or before year XI, 9 percent at or before year XIII, and about 3 percent go on to university. Language of Instruction 2.8 Schools are required to teach in one of the country's two main languages (annex 2, tables 2-1 and 2-2). About three-quarters of pupils study in Sinhala and one-quarter in Tamil, corresponding to the proportion of the population using these languages. In principle, Sinhala and Tamil language users must also be taught each others' language, but in practice teachers qualified in the nonmajority language are scarce. Over 80 percent of teachers teach in Sinhala. 2.9 English was abolished as the language of instruction more than a generation ago, but is greatly in demand in the labor market and for study in sciences. English is currently being reintroduced as a foreign language from year III, although there are too few trained teachers. Educators are currently debating whether year III is too early, especially since for some children it may be a third language. Because of the advantages of using English, elite schools already encourage the use of English in the 32 classroom. While the subject is controversial, Sri Lanka could benefit considerably from a crash program to improve English teaching. School Size and Types 2.10 The country's schools are typically small (annex 2, table 2-3) and the proportion of small, medium, and large schools has changed little in the last decade. Of the total number of schools, 23 percent are very small, with 100 pupils or fewer, while more than half had 101-500 pupils, 16 percent medium sized, with 501-1,000 pupils, and only 7 percent have more than 1,000 pupils. The few very large schools (more than 2,000 pupils) are located exclusively in urban areas. Sri Lankan policymakers appreciate that village schools are important symbols of community pride. Many small schools remain open on these grounds, despite their high unit costs, although very small schools are gradually being consolidated. It is questionable, however, whether schools with very small classes are an effective use of resources beyond the primary level. 2.11 A peculiarity of the Sri Lankan system is that of "upgradation" (annex 2, table 2-4). Schools tend to get "topped up" by adding more advanced classes as pupils are promoted. The result is that physical facilities are not uniformly configured for a particular stage of education but rather conform to local demand for access and language of instruction. The most prevalent trend is for primary schools to extend into lower secondary. Over a third of schools provide years I-XI and 16 percent provide all thirteen years. A few schools (382) start at the secondary level, mostly going right up to A/L. 2.12 Schools are classified according to the number of years and type of schooling they provide. Type 1AB schools provide for years VI-XIII or I-XIII, teaching to A/L with science; type IC provide for years VI-XIII or I-XIII, teaching to A/L with arts and commerce, but not science; type 2 schools have years I-XI or VI-XI; and type 3 schools have years I-V (annex 2, table 2-4). The majority of schools (4,380) are type 3. There are 3,581 type 2 schools; 1,510 type IC, and 513 type 1AB. The type 1AB schools are generally large. There has been a rapid evolution of schools from pure primary (I-V) to I- VIII to type 2 to type IC. Type IAB schools have also increased in numbers as science and other facilities have been added to type IC or type 2 schools. School Type and Pupil Achievement 2.13 A clear correlation is apparent between pupils' academic achievement and the type of school they attend. A study (Kariyawasam n.d.) carried out a sample national assessment in 1986 and 1992 based on minimum learning competencies of year IV and V pupils in mathematics and language. According to the study (p. 41): "In every district Categories 1A, and lB and the primary schools are the better." The study cites the results of the language and mathematics tests as disturbing, for example, performance was generally not up to standard, especially in type IC and type 2 schools; there is a marked disparity among schools, boys and girls, and districts; and the performance of IC, 2, and 3 schools warrants immediate remedial action. While some type lAB schools gave good results, they were inadequate in others. 2.14 The study makes the point that every school district has its unique features, and in most districts different school types exhibited marked disparities in performance. In addition, physical structure and organization as represented by the various school types (facilities, teaching, equipment and reading materials available, and so on) correlated strongly with pupil achievement. 33 2.15 The study's most worrisome findings were that the type 2, mixed primary-secondary, and type 1C, all-year nonscience schools, appeared to put primary pupils' learning most at risk. The precise nature of these risk factors needs to be further investigated (including in other core curriculum areas) before the country invests in further extending these schools. 2.16 Unfortunately, the study does not distinguish between the performance of all-year schools and those that begin only with secondary years in types 1AB, IC, and 2. A future follow-up needs to investigate the performance of separate secondary schools. The Education-Employment Linkages Study suggests that primary and secondary schools should be separate (except perhaps in a few remote and sparsely populated areas). Facilities 2.17 The average annual expenditure per pupil (SL Rs 0.98 to SL Rs 5.11) by the provincial administrations on the repair and maintenance of schools varies widely. Even expenditures in the higher range are a very small proportion of total provincial recurrent education budgets. Disparities also exist in the amount of money individual schools can raise from parents and the community and through the new school development boards. 2.18 The large schools well-endowed with laboratories, sports facilities, electricity, and water are predominantly year I-XIII city schools and the thirty-six national schools in district centers, which continue to be financed directly by the MOECA. However, overall many schools suffer from inadequate physical facilities, for example, classrooms lack walls, furniture, and simple materials, let alone science laboratories and equipment, and teachers and pupils have little access to drinking water and sanitation. These schools are generally in poorer communities, mostly rural. 2.19 The government has recently implemented or initiated several projects to upgrade inadequate facilities, equipment, and furniture; to reduce overcrowding; and to provide drinking water, sanitation, and science or multipurpose rooms. Centrally-funded capital expenditure programs for general education were estimated at SL Rs 720 million for 1991 and SL Rs 861 million for 1992. 2.20 In recent years an attempt was made to establish a system of clusters, by which a number of small schools would be grouped with a larger one, which was intended to provide support and guidance to teachers in the smaller schools. The experiment was not successful for a number of reasons the most important of which was that the principal of the larger school was normally appointed director of the cluster, and tended to direct resources to the central school rather than to the smaller ones. The need to provide support to smaller schools remains important, however, and further experiments could usefully be undertaken, designed taking recent experience into account. 2.21 The MOECA plans to provide at least one secondary school in each division with the full range of facilities to increase access to enriched secondary education in a better than average physical environment. These schools will include science laboratories, libraries, sports facilities, and hostels. The strategy is to provide centers of excellence and attract talented pupils from the division, as well as high- quality teachers, thereby preventing some of the brain drain to Colombo. Risks include that the centers of excellence will drain other local schools of resources, talent, and morale, further exacerbating disparities, or that resources in the centers of excellence will not be sustainable. A parallel change that is taking place is the gradual reclassification of schools from provincial administration to national schools. The budgetary and administrative implications of these changes should be re-examined. 34 2.22 One question that especially merits examination is the continued pressure to schools: adding lower secondary classes to primary (type 3) schools, adding O/L classes to lower secondary schools, and adding A/L classes to type 2 schools. A frequent outcome is that schools do not have the critical mass of qualified teachers or the facilities to perform adequately at the higher academic levels. 2.23 During the next decade, needs for schools will continue to change rapidly as the country moves toward retaining all pupils through year XI, and demographic shifts continue. The situation will need to be monitored continuously and efforts to reconfigure school types and size to meet emerging needs will need to be ongoing. School personnel and communities will need to be receptive to change, and accept the idea that schools may grow or be closed over time. Funding incentives are needed for local governments to pay as much attention to schools in disadvantaged communities as they do to urban schools in wealthier catchment areas. Local governments need to build up institutional capacity to monitor and recommend changes, and to launch information, education, and communication programs to win public support. Enrollment 2.24 Since 1947, enrollments have quadrupled (annex 2, table 2-5). From 1985 to 1991, enrollment grew from 3.6 million to 4.1 million, nearly 14 percent (annex 2, table 2-6). Upper secondary (the A/L years XII and XIII) has been the fastest growing level, with enrollments in year XII rising the most (by 36 percent), especially for girls (annex 2, table 2-7). This largely reflects enrollment increases lower down the system and pressures to pass larger numbers of qualified candidates into upper secondary school. However, given the declining birth rate, by the year 2000 the number of children starting year I will have fallen significantly. There will be 280,000 fewer pupils in primary school in the year 2000 than in 1991, and nearly 50,000 fewer in lower secondary (annex 2, table 2-8). In contrast, secondary and upper secondary enrollments are expected to increase. Internal Efficiency 2.25 Sri Lanka's internal efficiency in primary education, in terms of low repetition and drop-out rates, is a success story almost unrivaled in comparator developing countries, although the story is less impressive at secondary levels. According to a recent comprehensive study of wastage in primary education (Kularatna, Dharmadasa, and Dharmawardena 1990), the average number of years of schooling required to produce a primary graduate is about six, indicating a high internal efficiency at this level of education. The 1988 coefficient of efficiency was 91 for girls and 88 for boys. 2.26 Regional disparities in income, home circumstances, and educational provision consistently depressed the performance of disadvantaged provinces, districts, and individual schools. The main causes of wastage include family aspects, such as poverty, children helping with domestic work, a different home language from the language of instruction, and parental influence; pupil-related factors, such as academic difficulty, behavior problems, and poor peer or teacher relations; and school-related factors, such as poor school facilities and a lack of equipment. The study pointed to a need for curricula in language and mathematics that set attainable and relevant standards of achievement for pupils. 2.27 Sri Lanka's literacy and schooling tradition is so strong that schools hold onto almost all children during years I-III. Out of a cohort of 1,000, the number of pupils who reached the last year of primary school increased from 934 in 1980 to 954 in 1988, and those surviving the first year of the lower secondary cycle increased from 870 to 911. A follow-up study now needs to examine why there is a 10 35 percent dropout at the end of year VIII. Once pupils get beyond year VIII they tend to stay on until O/L. Irregular attendance is, however, a problem for pupils from poor families and in schools that have many unscheduled closings. This is not strictly dropout, but it can lead to repetition and permanent dropout. 2.28 The system encourages pupil promotion from year to year in the primary and lower secondary levels and repetition currently runs at a modest annual average of about 8 percent. The wastage study cited earlier found that repetition dropped from 719 to 385 pupil years from 1980 though 1988. No clear evidence exist on whether automatic promotion or repetition is better for eventual success in school. 2.29 Enrollments are artificially boosted in years X-XI because pupils stay in year X if they feel unprepared for the challenge of O/L, and because 35 percent of O/L candidates repeat the examination at least once. In 1991 there were 215,000 first-time pupils in year XI and about 118,000 repeaters. Repeaters have a much lower eventual chance of passing than first-time candidates. In 1992, only about 20 percent of year XI first-time pupils progressed to year XII. Only about 30 percent of a cohort eventually qualify for year XII. Because A/L serves similarly as a first hurdle for university admission, repetition is also high in year XIII, running at about 35 percent on average. 2.30 The precise magnitude of the repeater problem at O/L and A/L is debatable, but it is not small. Equity clearly demands that candidates who are on the margin of passing should have a second chance. However, providing school facilities for repeaters is costly, and a significant proportion of repeaters do not benefit from that second chance: only 20 to 30 percent pass on average. The opportunity cost of repetition for the pupil is very low, given current high unemployment rates and the lack of alternative postsecondary education and training opportunities. In recent years, the authorities have banned repeaters from staying in school to re-sit examinations more than once, and the examination fees for those who re-sit as private candidates have been raised considerably. Given the importance of O/L and A/L for a pupil's future, this ban is not popular. However, repetition is costly to society. A more equitable option might be to restrict the opportunity to repeat years XI and XIII to those who attain at least a reasonable level on their first attempt, and to devote the substantial resources that could thus be saved to providing more trained teachers or to increased spending on quality." 2.31 Annex 2, table 2-9, provides information on promotion, repetition, and dropout rates broken down by gender. The mission estimated that if 1991 repetition rates could be halved by the year 2000, there would be 500,000 fewer pupils in school: 119,000 fewer in upper secondary and 240,000 fewer in secondary. Enrollment and repeater data need to be analyzed further to provide reliable conclusions about the repeater issue. Such a study could also look at the private resources being channeled into 3. Excessive repetition leads to perception of failure, is not pedagogically helpful, and is costly. However, the risk of promoting pupils who cannot keep up is that they internalize failure and their achievement declines until they eventually drop out. One study (Ekanayeke and others 1989) suggested that for disadvantaged Sinhala-speaking pupils, this may happen for a significant number of potential dropouts. The pupils showed a progressive failure in meeting the nmmunum standards in language and mathematical skills through prnmary school. Moreover, failure in language correlated significantly with failure in mathematics. 4. For example, about 120,000 students repeat year XI to re-sit the O/L, of whom at most 30 percent will pass at the second attempt, that is more than 80,000 will not obtain a pass the second time. Probably many of these will have benefited little from their second year at this level. If, say, 60,000 of the 80,000 had not repeated that year, at least 2,000 teachers would have been freed to concentrate on providing better teaching to younger students. 36 tutories (examination crammers), and examine whether such funds could be more effectively used elsewhere. Time Spent learning 2.32 Research shows that the time spent in class is a major factor governing what children learn. Actual teaching time in Sri Lanka is reduced by extremely high teacher absenteeism, and the short school year (185 days). The quality of what is learnt is affected not only by the time spent on teaching and learning while in school, but by the number of years spent in school studying new material. Given that years V, XI, and XIII are devoted mainly to preparing for and taking examinations, the number of years pupils spend learning the curriculum is nearer to ten than thirteen. Since many will have repeated at least twice by year XIII, these students will have spent fifteen years in school for not much more than ten years of actual learning. B. The Teaching Profession 2.33 Teachers used to command high status and respect as the literate persons in the community or as religious leaders, but this status has eroded. They are now hardly perceived as members of a profession. Their reputation has suffered because of their lack of commitment, their absenteeism, and the recruitment of unqualified or untrained people. Even the many dedicated teachers are unfairly blamed when their schools cannot produce year V scholarship winners or high O/L and A/L results. Aware of these problems, the National Education Commission is currently reviewing policy to see what can be done to upgrade teaching as a profession. Kodituwakku and Abeyratne (1990) provide much useful background on the subject of teachers in Sri Lanka. 2.34 Primary teachers are class teachers, except for a few specialists in such subjects as English or religion. Most secondary teachers are subject specialists. Given the large number of subject specialisms in the curriculum, efficient use of subject specialist teachers, especially in the many small secondary schools, is difficult, and teachers are sometimes underutilized or teach very small classes. By contrast, because of the shortage of specialists in subjects such as mathematics, science, and English, classes are often doubled up or not held at all. Because enrollment in secondary levels will expand in the coming decade, while primary enrollment declines, a large number of recently recruited primary teachers is likely to end up teaching postprimary classes, for which they are not qualified. A major, detailed study of teacher utilization in schools of different types and in subject specialisms is needed as a basis for the teacher training action plan now being prepared. Pupil-Teacher Ratios 2.35 MOECA data indicate that 40 percent of the teaching force teaches at the primary level, 52 percent at the secondary level, and 8 percent at the upper secondary level. Average pupil-teacher ratios in 1991 were 1:24 overall: 31 at the primary level, 21 at the secondary level, and 12 at the upper secondary level (annex 2, table 2-11). The overall ratio has declined steadily from thirty-six since 1947 (annex 2, table 2-5), and is declining further as more teachers are recruited. These ratios are too generous by international standards and on grounds of affordability. 2.36 While the ratios are somewhat misleading given the wide range of school and class sizes and the imbalances in teacher supply across the country, they underline the potential for more efficient use of the limited resources available to the education system. Available data suggest that the teacher supply 37 has grown proportionately more than pupil enrollment at the secondary level and proportionately less than enrollment at the primary and upper secondary levels, a puzzling phenomenon because recent teacher recruitment has been higher for the primary level than for other levels. It may be, of course, that the estimated breakdown between primary and secondary is inaccurate. One possibility is that experienced primary teachers move up to the secondary level when there are shortages of secondary teachers. Unless such studies are made of actual teacher use, measures to upgrade teaching quality will not be centered on accurate training needs assessments. The Teaching Service 2.37 Teachers are a distinct category of public servant administered through the Education Services Committee of the Public Service Commission. A set of regulations, updated in 1990, sets out criteria, based mainly on class size and subject specialisms, by which teaching posts are allocated and filled. These guidelines are basically sound, but need to be reviewed given current fast-changing teacher recruitment rates and deployment patterns. A review of the conditions of teachers' employment is high on the National Education Commission's list of priorities. A desirable modification may be to introduce the concept of a teaching service, separate from the rest of the public service, with perhaps improved pay and employment conditions, but with modifications such as abolition of the right to take leave during term time, decentralization of employment, and a requirement to serve in a remote area for a certain number of years. 2.38 On appointment to a position, new recruits become assistant teachers. There is also the Principals' Service and the Sri Lanka Education Administrative Service (for directors, chief education officers and education officers) (annex 2, figure 2-2). Alongside other eligible officers, classroom teachers with the requisite qualifications and experience can sit competitive examinations for promotion to the Principals' Service and the Sri Lanka Education Administrative Service. Eligibility scores differ according to ethnicity. This affirmative action attempts to compensate for the shortage of Tamil-language teachers. 2.39 In general, career prospects are restricted, but are better in larger schools. Principals' positions are often filled on an acting basis. In 1987, the latest year for which data are available, 40 percent of principals' posts were filled in this way. The effects of this practice on school leadership, management, and quality need to be investigated. Salaries 2.40 The Sri Lankan authorities acknowledge that teachers' salary scales and allowances are uncompetitive (annex 2, table 2-12). For instance, the position of an English-language stenographer in a private firm in Colombo in 1992 was advertised at SL Rs 32,250 a year (excluding benefits valued at 13 percent of salary). A trained O/L or A/L teacher would earn SL Rs 34,800 at the top of the salary scale, excluding benefits. A hotel trainee with O/L receives SL Rs 3,000 per month, and can expect SL Rs 5,000 when eventually employed. Trainee teachers receive a stipend of only SL Rs 1,500 per semester, while graduate trainees get SL Rs 2,050 per month. 2.41 The main incentive for entering teaching is the expectation of security of tenure, benefits, and a pension if made permanent. The relatively short working day and school year are also attractions that allow many teachers to earn additional income elsewhere. The Teacher Attendance in Sri Lanka (NIE and MOECA 1991) study addressed many issues of career development in the teaching profession. 38 A follow-up study is now needed that would address the development of career and salary structures, personnel regulations, and supervision to ensure that teaching is not perceived as an easy, second occupation. Deployment 2.42 Until 1982, teachers joined a nationwide service that permitted their transfer to meet the needs of all parts of the country. In the early 1980s, 80 percent of teachers worked outside their home provinces, but most were reluctant to be assigned to remote areas. Such placements led to undue absenteeism and the loss of instructional time (see NIE and MOECA 1991 for a study of this problem and recommendations). Therefore, a policy was recently adopted to appoint teachers to their home districts. Currently, more than 60 percent work at least in their home provinces, if not their home districts. This policy needs to be monitored to see whether it helps reduce teacher turnover and attrition. 2.43 Teacher turnover was exacerbated in the 1970s and 1980s because some teachers were involved in the political unrest. In addition, well-qualified recruits, especially male graduates, often use teaching as a stepping stone to more attractive occupations. Finally, the early retirement program, launched in an uncontrolled manner in 1990, led to a sudden loss of more than 12,000 experienced teachers, a loss from which the system has yet to recover. 2.44 The education authorities encourage the feminization of the teaching force. In 1989, 62 percent of teachers were female, (annex 2, table 2-13) rising to 67 percent by 1991. Teaching is an acceptable occupation for women. Women teachers are thought to be conscientious and nondisruptive, and the policy helps mitigate rising female unemployment. However, the predominance of women also contributes to the low status of the teaching force, because they are generally more willing than men to accept poorer pay and career prospects. Another problem is that women tend to converge on urban centers. Finally, due to the recent heavy recruitment of women teachers, there is an age imbalance between male and female teachers, which exacerbates the salary differences. Close to half of all female teachers work in the western, central, and southern provinces. Women teachers also far outnumber men in other urban centers. A comparative study of the causes and effects of imbalances in the gender ratio of the teaching force would be useful. The promotion prospects for female teachers, on which research has been conducted in other countries, would be an interesting aspect of the study. Recruitment 2.45 In recent years new recruitment has been massive. In 1989, on the direction of the president, the MOECA drew up a scheme to appoint 25,000 untrained nongraduate teachers, selected locally for local schools. The scheme's objectives included helping to remedy the shortage of teachers in remote areas and in specific subjects, giving people in outlying areas an equal opportunity to join the teaching profession, and improving overall teacher quality by providing compulsory training. Subsequently, 10,000 primary teachers were recruited or made permanent. In 1992, over 15,000 teachers were appointed (a net increase of 5,000), mostly with A/L in English, science, and technical and aesthetic subjects, including about 1,000 graduates, about 4,000 trainees in shortage subjects (2,300 O/L-qualified English and 1,500 A/L Science and Mathematics), and about 850 teachers in agriculture, technical subjects, health science, and sports. There was a further net increase of over 11,000 more teachers appointed in 1993. Tracer studies of the careers of these new teachers and trainees are needed, with a focus on whether trained primary teachers move up to the secondary level; or whether graduates remain in the profession; and on the contribution of the trained science, mathematics, and English teachers to 39 raising educational quality. This study could be combined with the proposed study on teacher utilization. The findings and conclusions would help develop a teacher recruitment policy based on objective needs. 2.46 Untrained new recruits on a small stipend save full salary costs until they are appointed to a permanent position after two to four years of training. The use of trainees as a source of cheap labor and the appointment guarantee policy need careful scrutiny to determine whether they serve the development of a high-quality teaching profession. Teacher Numbers 2.47 During 1989-93 the total number of teachers rose from less than 150,000 to nearly 187,000. The number of certificated teachers rose by 26 percent. There was a small decline (7 percent) in the number of trained teachers and in those with higher qualifications. There is no doubt that to meet community aspirations and to provide access to schools with years I-XIII and for all classes for the country's 35,000 villages is a major problem for policymakers. However, given the projected decline in the pupil population, which is already occurring at the primary level, the rise in teacher numbers appears unwarranted. The numbers recruited far exceed the government's own guidelines which are themselves too generous. Since the majority of teachers are still young, the salary burden will increase over the years. However, the preservation of communities is an important national imperative that cannot be neglected, and one to which schools contribute. Further study is needed to examine how future teacher redeployment and upgrading could reduce new recruitment to a minimum, while preserving the objective of equitable access. Teacher recruitment should be immediately frozen until the authorities work out a detailed policy. 2.48 Mission estimates (which allowed for realistic enrollment projections and reasonable increases in average pupil-teacher ratios), indicated that overall teacher requirements could decline by more than 25 percent by the year 2000, or an absolute decline of more than 40,000. If pupil-teacher ratios were improved, savings would be somewhat smaller than this in practice, because requirements need to take account not only of average pupil-teacher ratios, but also of class sizes for subject specialisms, classroom capacity, and rigidities in teacher deployment to attain the optimum match between teacher qualifications and requirements in particular locations. Teachers' Qualifications 2.49 The government is concerned that the levels of education and training of the teaching force are less than optimal (annex 2, table 2.14) and have been made far worse by the recent heavy recruitment of non-trained generalists. Already in 1991, although 45 percent of teachers were trained with non- graduate educational qualifications, 23 percent had degrees (some of whom also were trained as teachers), 27 percent had only O/L or A/L but no teacher training. A handful had a university teaching diploma. Of the 76,000 trained nongraduate teachers, half were primary specialists. There were fewer than 10,000 in each of the core categories, English, science, and mathematics and fewer than 1,500 teaching social studies, a subject with an important citizenship building function. Of the 40,000 graduate teachers, 80 percent were qualified as specialists in arts or performance arts, 10 percent in science or mathematics, and 7 percent in commerce. Just 192 science and mathematics teachers had a university teaching diploma. 2.50 The minimum educational qualification for teachers was recently raised from O/L to A/L, although O/L holders are still being appointed. Policymakers recognize that O/L holders are not 40 adequately educated to teach even at the primary level, given the breadth of the curriculum: it is probably more difficult to teach basic subjects well at a simple level to young learners than it is to lecture to university students. They should certainly not be assigned to secondary level teaching without considerable in-service training related to subject matter and continued professional support. The minimum qualification for effective teaching at the primary and lower secondary levels is a good A/L pass. However, the problem with this is that A/L is so specialized that current A/L holders cannot cope with primary teaching, which requires adequate knowledge across all the subjects taught. Therefore, supplementary training is also required for A/L holders. The nature of the training required needs careful analysis. 2.51 For teaching at O/L and A/L, post-A/L or graduate-level education in the specialist subjects is desirable. A number of rapidly developing countries, such as Malaysia and Indonesia, where quality improvement is a priority, have implemented policies requiring such qualifications. The post-A/L or graduate studies should train teachers in both subject specialization and pedagogical methods. 2.52 Policymakers have been considering raising the minimum educational qualification for all teachers to degree level. The anticipated outcome is to raise the quality of teaching. The short-term objectives are to provide wider employment opportunities for graduates and upward professional mobility for existing nongraduate teachers through in-service degree programs. At this point in the country's development, raising the educational qualifications of teachers at the primary and lower secondary levels to graduate level may not be desirable or affordable. Given that a graduate teacher is paid 50 percent more than a certificated teacher, the cost implications would be large, for little real benefit. While a post- A/L teacher education policy would certainly be optimal in the long run, it would need to be targeted to those areas where the payoff in quality would be highest, and would have to be designed within the limits of affordability and sustainability. The feasibility of these policy proposals needs careful scrutiny. Finally and crucially important, the investment and recurrent costs of developing and maintaining upgraded qualifications for new teachers and/or upgrading the current teaching force need to be calculated. C. Teacher Training 2.53 Annex 2, table 2-16, sets out current provisions for teacher training. In the 1960s teachers were appointed and subsequently trained on an in-service basis in teacher training colleges. Due to the rapid expansion of the teaching force (from 170,000 in 1991 to close to 200,000 in 1994), and the earlier replacement of retired, experienced teachers by new recruits, there is a huge backlog of teachers who have no training at all and need in-service upgrading in subject matter and pedagogy. Over 90 percent of recent recruits are untrained. The authorities have tried to reduce this backlog, but the frequent recruitment of large batches of new teachers has made it difficult to catch up. 2.54 Sixteen Teachers' Colleges (TCs) provide in-service training for untrained nongraduates and un-certificated teachers, two years full-time, with a third year of practical training (usually not supervised): they are however not well used, since recently they have been operating at a fraction of their capacity. For graduates, training is provided in the Institute of Distance Education, the National Institute of Education, the Open University, and the universities of Colombo, Peredeniya, and Jaffna. The TCs provide training for primary teachers, science and mathematics, handicrafts, aesthetics, home science, agriculture, religion, special education for the secondary level, and English for both the primary and secondary levels. The TCs are administered and supervised by the MOECA's Division for Teacher Training, which appears to be under resourced. The TCs are dilapidated and underutilized, but a reform program is currently being developed. Some provinces have independent teacher upgrading programs. 41 2.55 The other main system for upgrading teachers is through distance education. The Ministry operates a major program for distance education supported by Swedish aid, which operates successfully. 2.56 There used to be no provision for pre-service training of teachers with O/L and A/L or of graduate teachers. Since 1988 ten colleges of education have been established that specialize in primary education and in science and mathematics, English for the primary and secondary levels, and physical education for the secondary level. A policy of selecting teacher candidates from among those with three A/L passes and providing them with two years of full-time, residential, pre-service training in the colleges of education plus a third year of supervised practical teaching has been adopted. The plan is that students will serve for one to three years in a disadvantaged area prior to being given permanent positions in their home districts. 2.57 A recent study (Nielsen and Tatto 1990) investigated the effectiveness of the three teacher training delivery systems (note, however, that some of its conclusions have been questioned and that events have overtaken some of its findings). The main conclusion was that the priority Sri Lanka is giving to training teachers is appropriate, and that teacher training is positively related to pupils' achievement. In terms of subject knowledge and knowledge of pedagogy (but not teaching skills), college of education and distance education teachers performed better than TC teachers. The distance education programs appeared to provide good opportunities for teachers to use self-study and for group interaction, and to apply their new knowledge in the classroom. They were more effective in terms of particular subjects than the TCs (where the curriculum seems somewhat irrelevant for experienced teachers) and the colleges of education (which are very new). For new teachers the risk is that they will be trained in recycled content and in methods no longer helpful in today's classrooms, and will develop negative attitudes when faced with the harsh realities of the average classroom teaching environment. 2.58 The study's results suggest that campus and college teacher training programs should adopt the self-study group work approach that is used in distance education. The authorities should monitor the effectiveness of the college of education programs and initiate tracer studies of the teachers trained. The cost of residential programs is high and the authorities should keep their cost-effectiveness under review. A review of the TCs is needed to establish whether or not these campus-based programs are worth developing or should be phased out. If they are to be retained, an updated and realistic policy is needed on institutional alternatives to train the backlog of experienced but untrained teachers, and the TC curriculum urgently needs revision. 2.59 Perhaps surprisingly given its critical importance for quality improvement, the teacher training system at the time of the study cited above was one of the few areas in the education system where there has been some cost recovery or cost sharing. At the time of the study distance education trainees bore a high proportion of direct and indirect program costs (including private opportunity costs). The college of education trainees paid no tuition and received a stipend, but a large part was paid back as a facilities fee; however, TC trainees paid a small facilities fee, no tuition fees, and received their salaries while in training. 2.60 Continuing education and professional training was limited in the past. When the National Institute of Education was set up in 1983 it took over continuing education and professional training, and now conducts a variety of programs in a new facility near Colombo; however, its outreach capacity is limited. Teacher resource centers provide services to all teachers in an area, who can use them at their own initiative. They offer one-day or weekend training courses and provide a place for teachers to meet their colleagues. Under the current decentralization policy, provinces and zones will share responsibility 42 with the National Institute of Education for maintaining and enhancing teachers' professionalism. A recent proposal to develop a newsletter for teachers has much potential and needs to be followed-up. The MOECA has made plans to coordinate and develop continuing education and professional training, but a more detailed national strategy based on proper analysis is urgently needed. Governance and Management of Teacher Training 2.61 The government has recognized that enhanced education quality depends on the quality of the teachers, and has initiated a number of training programs to improve their professionalism. The country is fortunate in having a variety of delivery systems and approaches that can be tailored to meet different training needs, and it needs to exploit this diversity. A national drive to produce high-quality teachers is a major priority, and given the number of teachers recently recruited who lack the appropriate experience and educational background, the emphasis must be on in-service training for many years to come. Many of the elements of a strengthened teacher training system already exist. However, the size and nature of the problems in teacher training are daunting, and the teacher training institutions clearly do not yet have sufficient capacity to undertake all the necessary development work to enhance the quality of their products. Careful analysis is needed to determine the optimal length of in-service training given the numbers who need training, the costs of training, the reduced marginal benefit from training after the initial months, and the limited capacity of the training system. 2.62 In addition, the management of the various delivery systems is dispersed and uncoordinated and the entities responsible appear overstretched by supervisory and administrative responsibilities. The situation calls for thorough institutional appraisal. The universities play only a minor role in training teachers, yet their leadership could help introduce state-of-the-art subject matter into teacher training. There is also potential for the new affiliated university colleges to participate. The new provincial managements, charged with in-service responsibilities, have not yet had time to set up effective training, and many districts that most need such efforts do not have the capacity and technical personnel needed. 2.63 In sum, teacher training lacks a fully authoritative coordinating body that could pull together the various initiatives into a comprehensive, long-term strategy for teacher training and professional development. There is a strong risk that the current, costly efforts to upgrade large numbers of untrained teachers over a very short period will provide formal certification, but will not make teachers more effective. In addition, if the policy of recruiting and appointing teachers locally is to work efficiently, a nationwide institutional survey is needed to help policymakers decide how to match the location of teacher training institutions with current and future needs for teachers. Teacher Training Personnel and Curricula 2.64 Teacher training can only be as good as the trainers. Unfortunately, no comprehensive profile of teacher trainers exists that could form the basis for a needs assessment. Some leading teacher trainers are abreast of the most up-to-date training methods and can act as change agents, but many do not enjoy sufficient opportunities for professional development and lack exposure to best practice elsewhere. 2.65 Some teacher training curricula are well designed, but others should be revised on the basis training needs assessments. There is a lack of classroom application of teaching practice in school contexts other than the "model" school situation. More assessment of teachers during training and of their practical skills is needed, so that trainees can receive appropriate remedial help, and minimum 43 competency standards can be established. Teacher training materials in Sinhala and Tamil and equipment for practical subjects are in short supply. There should be equipment for video feedback to trainees, a powerful training technique. Teacher Training Action Plan 2.66 In view of the number of untrained teachers, the importance attached to teacher upgrading, the Asian Development Bank's commitment to finance major investments in upgrading the TCs (and the fact that the TCs are grossly under-utilized), as well as the priority being given to improving the quality of education and the equity of access to good education, a detailed review of teacher training policy and priorities is needed. What kinds of training and/or upgrading do different types of teachers need? Do some subjects, for example, mathematics, English, and science, need to be given higher priority than others? How much should be spent on teacher training? Under the General Education Project, the government has undertaken to prepare a teacher training action plan. A thorough review is urgently needed in order to develop such a plan, which would be- a basis for developing policy that can benefit from donor support in years to come. D. The Curriculum 2.67 The lower primary curriculum (years I-III) is formulated on a theme rather than a subject basis, scheduled flexibly over a week lasting twenty-two and a half hours. In upper primary beginning science is a separate subject. The school week lasts twenty-seven hours at the secondary level (forty periods of forty minutes), but some subjects are taught in an interdisciplinary manner, for example, social studies and history. Teaching for the O/L examination dominates the curriculum from year IX on, and subjects not relevant for progression to A/L receive little attention. There is a lack of continuity between O/L and the revised A/L, and a large leap in competency is needed between O/L and A/L, for which many pupils are ill-prepared. The O/L mathematics syllabus in particular may be too complex for students from schools who do not have specialist teachers, which dooms such students to unnecessary failure. For A/L, students may select subjects from a wide choice of options within science, arts, and commerce streams. Pupils choose four subjects within a stream. Practical work was abolished at A/L twenty years ago because of the difficulty of examining it. Curriculum Implementation 2.68 The many school system restructurings over the years have frustrated attempts at curricular reform. Also, new curricula have sometimes been introduced too hastily in response to political agenda, with the result that innovations were not field tested, guidelines on how to implement them were not readily available, and teachers were not retrained. This is not to downplay the efforts of curriculum developers to update and sequence subject matter and to substitute process skills for mere memorization of facts. Nevertheless, little has been implemented at the classroom level. 2.69 Involving classroom teachers in the process of integrating new material so that it is effectively taught and learnt is the most problematic issue in enhancing educational quality in most schools. All teachers, not just a select few, must be full partners in developing and testing new curricula. School staff need to work together to implement curricular innovations. All districts should hold frequent workshops on writing curricula, preparing implementation handbooks, and using new teaching-learning materials. 44 Curriculum Development 2.70 Curriculum developers have several programs under way to continue updating subject matter, but these efforts suffer from the absence of an overall strategic plan for developing educational programs. Various innovations in curricula are developed at any one time at various levels and in various subjects. This cautious approach, which contrasts with the radical upheavals of the past, has merit. However, its disadvantage is that it spreads expertise thinly. Moreover, the challenges of revamping curricula and winning consensus for them are enormous, and the pool of key curriculum experts is possibly too shallow to enable curriculum development across all school levels and subjects to meet what should be urgent deadlines for revision. 2.71 Efforts are under way to link the lower secondary curriculum more closely to the primary curriculum, and to specialize in single subjects only in year IX. This continuity is intended to reduce the backwash effect of the O/L examination on lower secondary students, thereby encouraging teachers and learners to widen their repertoire of cognitive practices beyond mere memorization. For the curriculum for years I-VIII to be a continuous progression, the syllabus of the year V examination needs review to ensure that it discourages the memorization trap. 2.72 Vocational relevance has long been a policy imperative in general education. This is reflected in the new life skills curriculum at the lower secondary level, and in the huge number--fifty- three--of technical subject options available from year IX that lead to the Junior Technical Certificate. However, despite much experimentation with practical, pre-vocational, and technical curricula, secondary education has remained theoretical and lacking in practical relevance and application. In addition, many schools cannot offer more than one option. Studies have shown that schools have not helped school leavers to develop practical skills, realistic job expectations, or a work ethic. In view of the difficulties, the vocational training content of general education should be kept to a minimum, while at the same time ensuring that all students learn some practical skills. Curriculum Overload 2.73 The coverage of the curriculum is broader than in the past, and in some areas, educators acknowledge, it is beyond the capacity of both teachers and learners. Several factors help swell the number of subjects taught and their coverage. Some are the inevitable consequence of a policy whereby the school system is used as a tool for social integration into a pluralistic society, which requires emphasis on languages and religions, and ensuring that social studies, history, and aesthetic subjects cover topics relevant to the country's many cultures. The growth of knowledge in science and of social concerns have expanded science education, which now includes health and the environment. In addition, especially those pupils expected to enter modem sector jobs require an international perspective, together with foreign languages. Together with the number of subjects, there is always a tendency to add more and more to the content of curricula for individual subjects. Curriculum streamlining is necessary, but requires much leadership and consensus building. Learning and Teaching Time 2.74 Because of the problems in covering the core curriculum, especially but not only at the secondary level, education authorities are discussing how to increase the time spent on core curriculum activities. In some schools supervision is lax, and teachers probably do not work for the full forty periods, requiring strengthened supervision and increased incentives for teachers. More generally, one 45 option is to lengthen the school year from its relatively short 180 days. Another is to reassign some time from selected curricular areas, for example, technical options and creative, aesthetic, and physical education, leaving them to be implemented in a structured co-curriculum implemented outside regular school hours. 2.75 Another ameliorative action would be for curriculum planners to cut out repetitive and redundant material. They might also provide more guidelines on homework assignments. If pupils are assured of having the basic textbooks and pencils and workbooks, homework is a possibility even for the poorest pupils. Principals could set space aside at school for pupils who cannot easily do homework at home. 2.76 These options are, of course, likely to face major constraints. One is that many teachers - poorly-paid - would be reluctant to forsake their other income-earning opportunities. Another is that curriculum areas that are not examined (co-curriculum) tend to be neglected. If the school year were extended or some other options for increasing the amount of learning and teaching time were adopted, this would need to go hand-in-hand with additional technical support for teachers to help them use the extra time productively. This would require initiative from the divisional education offices and the teacher resource centers. Curriculum Assessment 2.77 Curriculum reforms need to be monitored and evaluated to permit modifications to curriculum guidelines, syllabuses, and teaching materials. The National Institute of Education is currently developing assessment techniques in various areas. To enhance its work in this field, a broader spectrum of teachers needs to be involved. Teachers' participation would not only help relieve the institute of the heavy burden of work involved, but would also provide feedback on the appropriateness of assessment instruments in different settings and help to interpret findings about gaps between what pupils are meant to learn and what they in fact learn. Such participation would also provide teachers with opportunities for professional development and enhance district-level capacity to develop realistic and relevant training in curriculum implementation. E. Textbooks and Other Reading Materials 2.78 The free textbook policy for grades I-XI has been one of the key features of universal access to primary and secondary education. The long experience and the technical expertise of the MOECA's Educational Publications Department (EPD), mandated in 1966 to administer the policy, have made the policy workable. The standard textbooks in Sinhala and Tamil for religion, language study, social studies, science, mathematics, commerce, and history are distributed to all schools for years I-XI. New titles are regularly developed. Spot checks show that most classrooms have textbooks, although not necessarily one per student. This is a considerable achievement in an area where many countries experience difficulties. Students in years XII and XIII must buy their textbooks, although at subsidized prices. 2.79 The MOECA buys textbooks for grades I-XI from the EPD and distributes them to schools on the basis of schools' estimates. In 1992 the cost was over SL Rs 413.5 million for 17.6 million books and more than 170 titles (annex 2, table 17). The books are distributed to regional subcenters and then to schools. The EPD pays for publishing, warehousing, transport, and distribution. The distribution effort can be considerable, from 1.7 million books in the Colombo area to 140,000 in the smallest region 46 in 1991. Textbooks are on free loan to pupils who are expected to return them at the end of the school year except for year I pupils and the books provided to years IX-XI, which have to be replaced annually. The EPD runs a major enterprise, with more than 20 million reprints of 170 titles in 1991, and 190 titles in 1993. Print runs are from 4,000, to the year U English language reader at 500,000. Book life is estimated as three years. 2.80 Production costs have risen over the years, with the cost of paper, supplied by the government in bulk, forming 60 to 80 percent of the total cost. The annual EPD budget is some SL Rs 200 million, excluding administration. As one would expect, the cost of books per pupil rises for successive grades from about SL Rs 20 for a year I package to nearly SL Rs 400 for a year X Muslim Tamil package. The price of some workbooks (not reusable) is higher than that of the corresponding textbook (annex 2, table 2-19). In general, Sinhala texts at every level have lower unit costs than Tamil, presumably reflecting the shorter print runs needed for Tamil texts. Science, mathematics and English are expensive, even at the primary level. Quality and Quantity of Books 2.81 Educators indicate that most approved standard texts follow the curriculum quite closely, and that texts are gradually updated as the curriculum changes. Teachers' guides are supplied for some subjects and years. Some teachers complain that the books supply only basic subject matter and not sufficient material to reinforce their teaching. Even for the year 5 examination, and certainly for O/L and A/L, pupils prefer to buy crammers that contain model answers to past examination questions. Supplementary reading material necessary to reinforce the reading habit is available for sale in book stores in urban centers, but the schools generally lack sufficient library and reference materials, which are vital for implementing creative, problem-solving curricula. 2.82 The EPD, in consultation with the National Institute of Education, selects authors from among university and college of education teachers and oversees a panel that approves texts for publication. Authorship is a highly valued and esteemed activity. There are suggestions that the pool of expertise in educational authorship should be widened, that more classroom teachers should be encouraged and trained to write texts and reading materials, and even that authorship should be subject to competitive tender. Certainly, the EPD is unhappy with constraints on the quality of subject matter and presentation caused by its inability to undertake adequate field testing of manuscripts or research and development, particularly in local languages. It also claims that prices for buying copyrights of foreign texts for translation, which particularly affects higher-level texts and general literature, are exorbitant. 2.83 The physical quality of texts is fairly high by regional standards, but Sri Lankan educators would like it to be even higher, with more durable binding, stronger covers, and more color and illustration. Others argue that even though attractiveness and readability could be enhanced, a three-year book life is adequate because subject matter soon becomes outdated. Debate continues about the positive effects that cheap desktop publishing could have on the development of more and better texts and reading materials. 2.84 The teacher resource centers and teacher training institutions are good locations for training teachers to develop teaching materials, thereby reinforcing their own understanding of the curriculum. 47 The Educational Publications Department 2.85 The EPD is responsible to a commissioner and an additional commissioner (technical). Its administrative expenditures are modest, estimated at SL Rs 4 million in 1992. Its prime function since 1980 has been to design and produce standard textbooks for use by all levels of education. It has wide responsibilities, including its oversight of the entire process of textbook development, production, and distribution. It commissions printing from the Government Press (40 percent), the State Printing Corporation (40 percent), and private printers (20 percent). The EPD is also responsible for the design, production, publication, and sale of standard textbooks for years XII and XIII and for higher education, usually buying the copyrights of approved textbooks and translating them into Sinhala and Tamil. 2.86 The EPD publishes and sells related educational books, such as dictionaries; produces and sells study aids and audiovisual equipment; and encourages the production of general reading materials. It deals with school library books, but not with mainstream libraries, which come under the Library Services Department. These additional activities tend to be undermined by the burden of administering the free textbook scheme and selling higher education books. The National Education Commission is currently developing ideas on how to encourage authorship and publication of a wide variety of general reading materials. 2.87 Careful thought needs to be given to the EPD's future role and whether, for example, it should be transformed into an autonomous body. In the early 1980s, during general discussions about the need to coordinate various agencies whose functions were related, serious consideration was given to placing the EPD under the National Institute of Education, as was done with the Curriculum Development Center, but this did not occur. Later, book production and distribution was to be taken over by the provincial councils, leaving the EPD the function of textbook approval. However, a presidential decree overrode this mandate on the grounds that most provincial councils lacked the capacity to print textbooks, severe diseconomies of scale would result, and the uniformity of approved subject matter would be put at risk. A recent study (Gamage, Beneragama, and Tillekaratne 1990) again recommended that textbook distribution be taken over by the provincial councils, although the government continues to think that lack of local capacity makes such a transfer too risky. 2.88 The EPD says it works under two main constraints. One is the lack of technical experts. Editors are officers of the Sri Lanka Education Administrative Service, and can only be promoted if they transfer out of the EPD. There is also a dearth of new entry-level experts. The second constraint is financial. The Treasury regards the EPD as a public enterprise. The EPD borrows funds from the' Treasury at the beginning of the fiscal year and returns them at the end. It earns income by selling books distributed for free to the MOECA and selling upper secondary and higher education books to the public. According to the EPD, this restricts its income-generating capacity because the annual funding does not permit the production of enough higher education books to meet demand, and the pricing formula of adding 50 percent to cost is inadequate. The EPD estimates that it could double its income from higher education book sales if these were priced closer to what the market would bear, say an average 75 percent markup (it notes that the private sector charges 300 percent markups). Taxation policy also affects book prices, and should be examined. 2.89 One option is for the EPD to become semi-autonomous, free to set its own prices, at least for higher education books. How the price of books bought by the MOECA would be fixed and what the budgetary impact on the MOECA would be would have to be examined. An alternative option would be to contract out the various aspects of textbook provision, especially printing and distribution, and 48 perhaps even authorship and publishing. This alternative is attractive because of the potential for increased quality, and for increased efficiency through competition and deregulation, but the private sector's capacity would have to be examined carefully before asking it to do too much. In any analysis, both the supply and demand sides need to be investigated in full, plus the regulatory and fiscal environment for the industry and import policies for book production equipment and supplies. A Book Policy Review? 2.90 There is no suggestion that the free textbook policy, which is universally seen to be effective, should be curtailed. However, current concerns with issues of educational quality and the increasing cost of supplying school inputs suggest that a wide ranging, detailed scrutiny of all aspects of book policy is timely. The brief outline of the current system above highlights some institutional and technical issues that a comprehensive internal review might include to ensure the development of textbook policies appropriate to contemporary conditions. Such a review might also examine the situation in other countries of the region that are facing the question of the most effective and efficient way to supply books in a tight fiscal situation. F. Examinations 2.91 Examinations have dominated Sri Lanka's education system for centuries. In recent times, examinations have served mainly as selection mechanisms to decide which pupils proceed to the next rung of the education ladder. The ultimate goals are entry to university and graduate status, which fewer than 2 percent of the age group attain. The first external examination is held at the end of year V and qualifies a few pupils to enter elite schools. However, O/L at year XI is the major hurdle, and determines who will study for A/L. The A/L, at year XIII, determines who qualifies for higher education. As job opportunities have diminished with slow economic growth, the importance of these examinations has increased, and will continue to increase during the next decade as the bulge in the secondary-age cohort progresses through the system. At the same time, qualification devaluation, whereby ever higher qualifications are required for entry to employment, is likely to continue. Year V Bursary and Placement Examination 2.92 The Examinations Department administers the year V examination as it does all external school examinations, as well as public service recruitment and promotion examinations. This examination, given at the end of the primary level in Sinhala or Tamil and mathematics, was introduced to enable the highest achieving pupils from low-income families (less than SL Rs 6,000 per year) at less advantaged schools to attend a prestigious school, usually away from home, to win a bursary, and so to have the opportunity to advance to university. Seven thousand bursaries are available annually, but not all are necessarily awarded. The annual bursary now amounts to SL Rs 2,400 for six years up to year XI, which is extended for two years if the pupil qualifies to take A/L at the first attempt, and is extended further and raised to SL Rs 3,000 a year for three to four years if the pupil qualifies to enter university at the first attempt. The number of places to be awarded is 25,000, 20,000 to Sinhala-speaking children and 5,000 to Tamil-speaking children. Success at the year V examination is not a predictor of later academic success. Recently candidate numbers have risen, from 168,000 in 1987 to 340,000 in 1992 In 1991 only 19,000 (9 percent) of candidates had a qualifying mark. However, just over 6,500 pupils were awarded bursaries (5,605 Sinhala and 897 Tamil), and in total 14,000 (5 percent) of candidates obtained places in good schools through the examination. The cutoff pass mark is adjusted according to 49 the district and ethnic group, with cutoff pass marks generally lower in Tamil areas than in Sinhala areas. 2.93 The year V examination has provided a useful channel of upward mobility for a minority of able children that would otherwise be unlikely to fulfill their potential. However, as the number of candidates has grown, the system has become overloaded, and the good schools have been accepting only one-third of eligible top-performing candidates within the ethnic quotas who do not receive bursaries. This has led to doubts about whether the scheme is still serving as affirmative action for the poor. Moreover, some critics do not like the examination pressure exerted on young children for such small odds of gaining a bursary, nor the fact that bursary holders often have to go to school away from home. The examination also drains some secondary schools of their best brains, making them less able to show good results at OIL. Some of the best schools are reluctant to find room at year VI because they also admit pupils from year I and enrollment pressures are great. 2.94 The National Education Commission and National Institute of Education are currently reviewing the examination. It may well become a mechanism for selecting pupils for the proposed secondary centers of excellence. If this is the case, the appraisal needs to ensure that the syllabus reinforces primary curriculum objectives rather than memorization skills, and that pupils are encouraged to remain in their own area rather than seeking admission to prestigious Colombo schools. The commission should also consider the advantages and disadvantages of making the examination locally administered, thereby building local capacities and relieving pressures on the Examinations Department. O/L General Certificate of Examination 2.95 The O/L and A/L examinations have been extensively studied (see, for example, Little 1992; Jayeweera 1989; Lancaster University 1992; University of Cambridge 1990). O/L at year XI is a high stakes examination, not only because it is the gateway to A/L and future employment, but also because in 1989 the government announced its determination to award the declining number of available public sector jobs based strictly on merit and ethnic quotas, not political recommendation, thus increasing the importance of academic credentials. The examination is administered under tight security to maintain its high credibility with parents, pupils, and teachers as a fair selection instrument. This has been an especially strenuous task for the Examinations Department in recent years because of the need to examine in both old and new syllabuses, plus disruptions to schedules caused by social unrest. More than 447,000 pupils sat the examination in 1991, of which more than 45 percent were first-time candidates, almost 21 percent were first-time repeaters, and 33 percent were private candidates. The Examinations Department conducts the examination in December through its 2,500 examination centers and 300 regional coordinating centers. Candidates are allowed one repetition in school. Examination fees for repeaters were abolished in 1993. Students can attempt further repetitions as private candidates. However, repeaters do not justify the time and resources spent in terms of better qualifying marks. 2.96 There are six compulsory, core subjects: home language, English, mathematics, history and social studies, science, and religion. In addition, there are nearly twenty technical specializations; six aesthetic subjects; and, until recently, Pali, Sanskrit, and Arabic. Altogether this amounts to some sixty different syllabuses in the three languages. Candidates offer up to eight subjects. English must be offered, but is not in principle a requirement for A/L eligibility, mainly because this would discriminate against candidates whose schools are short of English teachers. The National Institute of Education's subject committees review syllabuses to ensure alignment with curricula, but the authorities are well aware that much work needs to be done. 50 2.97 To qualify for A/L entry (matriculation) students require six O/L passes (thirty-five marks), including home language and mathematics, and including thiee credits (marks of fifty or over). A credit pass in O/L is counted as an ordinary pass for the London General Certificate of Education. This international comparability is as important today as in the past, especially given the increasing number of pupils who set their sights on entering higher education overseas. The quasi-legal, incorporated, private "international" schools established in recent years usually teach to overseas O/L and A/L examinations. 2.98 In 1991, just under 35,000 candidates who sat passed in all eight subjects (8 percent), nearly 90,000 (20 percent) passed in six or more subjects with three or more credits, and almost 68,000 (15 percent) qualified for A/L (annex 2, Table 2-20). Only those with the highest number of subject passes and highest marks in the six passes with three credits category are accepted for A/L. Nearly 50,000 (11 percent) failed to pass in even one subject. In English more than 70 percent failed, in mathematics about 50 percent, and in science the failure rate was close to 60 percent. Over the years scores in these three crucial subjects tend to be similarly poor. In general, pass marks are lower than acceptable and are a function of both poor preparation in schools and the enormous competition. 2.99 Girls have recently been outnumbering boys as candidates at both O/L and A/L, and have also outperformed boys in scores in both examinations, except in mathematics. The growth in the number of girls sitting examinations is probably caused by the poor job prospects for girls with few educational qualifications and parental pressure to stay in school. An analysis of why girls do better than boys would be useful. General Certificate of Education 2.100 A/L at the end of the year XIII is an even higher stakes examination than O/L for the minority of the age cohort who get that far. A general arts degree is a minimal requirement for entry-level public sector jobs. An A/L qualification with high enough marks allows students to take part in the centralized university entrance selection process. Even then, entry is not assured because of the system of district and ethnic quotas. In recent years the number of A/L candidates has risen from nearly 120,000 in 1986 to nearly 160,000 in 1991. In 1991, 45 percent of those who sat were first-time candidates, 28 percent were repeaters, and 27 percent were private candidates. (There were 101,000 students enrolled in year XIII.) 2.101 There are six tracks: biology, physics, agriculture, commerce, arts, and languages. Altogether more than fifty subjects are offered. Candidates generally offer four subjects in the same track, with the majority taking commerce and arts subjects. Many choose science because of its prestige even though they are not well prepared. Better career counseling would prevent much disappointment. English is not popular, probably because A/L is a literature examination. This has serious implications for the quality of intake to higher education, where English is necessary in some subjects. The Examinations Department holds examinations in August through its regional centers as for O/L. Fees are SL Rs 40 per subject. 2.102 To gain a matriculation certificate, candidates must get at least 35 (out of 100) in three A/L subjects (higher for science subjects) and at least 25 marks in the fourth. For individual A/L subjects, the pass mark is forty. To be eligible for university selection candidates must perform much better than this. 51 2.103 Data for 1991 indicate that 39 percent of candidates qualified for university entrance (annex 2, table 2-21). Nearly 72,000 candidates, or 48 percent passed an A/L examination. However, 58 percent of those who took the examinations passed in Sinhala, compared with 35 percent who used Tamil and just over 11 percent in the small English-language section. However, fewer than 32 percent qualified for university, close to 38 percent in Sinhala 25 percent in Tamil, and 4 percent in English. Nearly 19,000 (15 percent) of candidates failed in all subjects. 2.104 A/L competition is even more intense than O/L, with a candidate having less than one chance in three of qualifying for university. However, success in actually gaining entry to higher education has much worse odds. In 1991, over 47,000 pupils qualified for university entrance, when the entire student population of the universities was only 28,500, and there were only about 7,000 university places. 2.105 Even if the number of entry-level university places is now about 10,000, the chance of a qualifier gaining admission is less than one in five (and then only after a one- or two-year wait because of the backlog from when the universities were closed). In practice, the odds are much worse than this because the quota system for admission excludes many candidates with marks well in excess of the minimum. The projected 20 percent rise in secondary enrollments will worsen these odds further. If all twenty-five planned affiliated university colleges are set up and expand enrollment, this would help to ease the situation, although resources are not available for this purpose. These fledgling institutions will, in any case, have to prove themselves in terms of the objectives and quality of their programs and may struggle for several years to attain status and the respect of prospective students as they build capacity. As a means of more diversified access to postsecondary education, they need to succeed. Examination Reforms 2.106 Examinations have been the focus of more or less continual debate and change, but have proven resistant to major reform, largely because the system is embedded in Sri Lanka's cultural and economic structure. The public has quickly rejected some major structural changes before they had time to work. Changes such as introducing pre-vocational subjects and oral and listening skills in English have been unpopular and thrown out. Other technical reforms, such as continuous assessment, were dropped, largely because the public did not perceive them as fair and objective. 2.107 The Examinations Department has in the past borne the brunt of popular discontent with reform. It is, nevertheless, a highly professional body. Its senior staff are skilled and experienced, but mid-level technical staff need skills upgrading. The staff work in cramped and crowded conditions with too little modem computer equipment, but a project financed by the Asian Development Bank will enhance the physical environment. The Department needs to clear the huge backlog of certificates owed to past candidates, because these are their passports to jobs. The Department wishes to expand the range of its item banks to ensure examinations do not repeat items from year to year and encourage memorization only. It needs to collaborate with the National Institute of Education in the generation of syllabuses and evaluation of curricula. The authorities are considering decentralizing responsibility for some aspects of examination administration to the provincial level. However, such a change is likely to be implemented cautiously, given public attitudes. 2.108 Private tutories and sellers of examination crammers flourish because of examination domination. These establishments do not have to follow the official curriculum. Instead, they are (more or less) expert at coaching pupils in how to memorize model answers to previous examination papers and 52 to maximize the marks they can earn. If the item banks for the examinations were expanded so that repeat questions were rare, and if they validly tested an enhanced curriculum, tutories and authors of crammers would be forced into more valuable educational activities to stay in business. If they operated in areas where schools were scarce or overburdened they would then make a genuine contribution to equalizing access to good education. 2.109 The Marga Institute (1992) study proposed a new, radical restructuring of the school structure and examination system, partly to provide more terminal points, and partly to reduce examination pressure. One of these proposals is to revert to a three-tier system of basic and secondary education (5+3+5 or 5+4+4), with O/L after year VIII or IX. However, this might force many pupils out of school when they are not ready for skilled employment. 2.110 Examinations test better what students have already learned (or memorized) than they predict students' potential to perform well at the next level of the education system. There is a view, therefore, that a national education testing service should be established to launch curriculum-free, culture-free, aptitude tests for predictive purposes. However, opponents of this view point out that such tests are extremely difficult and costly to devise and maintain, requiring large data banks, much institutional capacity now lacking, and many skilled personnel currently in short supply. Moreover, experience shows that teachers and pupils cram and practice even for predictive tests. International experience, including cost, needs to be critically appraised to decide if such an initiative should go forward. Financing would need to be found and institutional capacity would need to be developed before tests are launched. This means a development period of several years. 2.111 Neither the examinations system nor the school system as a whole are responsible for resolving the lack of access to higher education and training and the problem of youth unemployment. Only increased economic productivity and growth can redress these ills. The public needs to be frequently reminded of this. G. Private Schooling 2.112 The role of the private and nongovernmental organization (NGO) sector in providing education in Sri Lanka is related to the country's ethnic, religious, and social structure. Official policy and the actual situation differ. Certain groups exert pressure to expand private general education because public schooling does not provide what they want; other groups, especially those better off, push for improvements in the privileged national public schools or the high-class provincial public schools; while yet other groups, essentially poorer, non-English-speaking Sinhalese, see the expansion of private education, to which they do not have access, as a threat to their children's chances of success. 2.113 Primary and secondary education was originally provided by a dual system of government and private, mainly religious, schools. From 1947 on, most of the private schools were absorbed into the state system. Schools were entitled to opt out of the general nationalization of schools, but could charge fees only if more than 75 percent of the parents agreed. As those schools that did not charge fees found it hard to meet their costs, in 1981 the government decided to provide teachers and some financial assistance to some of the private schools. 2.114 Legislation passed in 1960 mandated that only the state could run schools for ages five through fourteen. In theory new private schools can be approved if they can prove that they fill a need 53 that the state cannot meet; however, no new private schools have been licensed for this age group since the legislation. It is generally recognized that the legislation is out of date and needs to be revised. 2.115 Non-state education is divided into four main types: (a) the officially approved private and "approved/certified" schools, (b) the so-called international schools, (c) the "tutory" system, and (d) the NGO and private preschools. In addition, there are the Buddhist pirivena schools. Officially Licensed Private Schools 2.116 Sixty-three schools are classed as private and approved/certified, of which thirty-eight are non-assisted fee-levying schools and twenty-five are assisted non-fee-levying schools. They serve a total of 83,000 pupils. The non-fee-levying schools cover their costs using donations from parents and other sources, while the government pays the salaries of most of their teachers. The supplementary revenue they receive from their welfare associations can be substantial: some schools receive more than the government contribution to salaries, with contributions to a capital fund adding half as much again. (The public national and high class provincial schools probably receive similarly important contributions from parent associations; the government is attempting to increase parental contributions of this nature to all public schools.) 2.117 Of the thirty-nine officially approved private schools, half are in Colombo, most are run by Christian religious orders. Private schools tend to have better facilities than all but a few state schools, to have relatively high educational standards, and to have excellent pass rates at public examinations. They also pay more attention to pupils' command of English. The high unit enrollment (average 1,850 pupils) reflects the demand for their services, which substantially exceeds their capacity. Several religious groups would like to open new schools to respond to this demand, but have not been authorized to do so by the authorities. There seems to the outsider little educational reason why schools offering good education and able to tap resources that others cannot should not be allowed to expand to meet demand for their services. International Schools 2.118 In recent years there has been a growth of schools that cater to parents' desire to have their children educated in English. These institutions operate under company legislation rather than that governing education, or are completely unlicensed, and provide a variety of levels and quality of education. These schools do not conform to the law that requires private schools to have permission to operate, although the law does not provide punitive measures. Some fifty to sixty such institutions exist, with anywhere from 5,000 to 15,000 pupils. These schools generally teach to overseas examinations, usually British or Australian. The better ones have high pass rates and charge high fees. Little is known about the others. 2.119 Those who speak English have a great advantage in the job market. Some people accordingly see the international schools as a giving some children an unfair advantage, and are attempting to have them prohibited by law. A more logical solution would be to strengthen the English teaching in state schools, and to reform the law governing private schools to set minimum standards that the schools would have to meet, but otherwise leaving them substantial freedom. (In the health sector there has been a parallel development of private hospitals set up under the Companies Act.) 54 Tutories 2.120 The largest part of the nonstate system consists of private institutions responding to the pressure to obtain good grades at public examinations. This pressure is such that most children seek additional teaching from private sources when studying for O/L and All examinations. Even in primary school additional tutoring is common given the pressure to get into one of the better state schools and the availability of merit scholarships. Tutoring varies from teachers providing additional private classes out of school hours to their pupils, to large institutions giving lectures to classes of 200 or more pupils studying for O/L and All. Some children reputedly no longer attend regular schools, but are full-time tutory students. 2.121 The tutories have a number of pernicious effects. To start with, substantial resources that could have been tapped to improve public education are diverted to the tutories. The belief that supplemental tuition is necessary to pass an examination devalues what goes on in school, and contributes to the emphasis on rote memorization. In addition, the vested interests in the now substantial tutory industry are a force opposing education reform. Kindergarten and Preschool 2.122 Since there is no public education below the age of five, the law does not prohibit private and NGO provision at preschool levels. The result is a wide range of private and NGO preschool and kindergarten facilities. The most significant preschool development is through the Sarvodaya Movement, a national NGO that emphasizes preschool facilities (its Early Childhood Development Program) as an essential part of its strategies for village community development, leading to improving nutrition and maternal and child health. Sarvodaya has some 4,000 preschools, with an average enrollment of twenty to forty children aged two to five. Thus it may provide preschooling for as many as 10 to 20 percent of each cohort. Sarvodaya trains its teachers from among community volunteers, has funding from various national and international sources, and the quality of the education is probably good. Because public primary schools have almost universal coverage, Sarvodaya has not tried to provide schooling beyond the preschool age. 2.123 A number of private kindergartens may actually provide primary education beyond age five. No data are available, but the number of children involved is small compared with the public system. H. Issues 2.124 The main issues that Sri Lanka's general education system faces include (a) quality in terms of educational achievement, work attitudes, and citizenship values; (b) access to good quality primary and secondary education across geographical and social groups; and (c) the restricted access to upper secondary and higher education. These issues are long-standing and complex and will take many years to resolve. They are linked, because there is no reason to widen access to upper secondary and higher education unless the quality of the pupil intake, the programs offered, and the pupil outcomes are high enough to justify the costs. Quality 2.125 The focus of initiatives to improve educational quality should be pupils' learning outcomes in terms of cognitive skills and character. While the youngest children must be provided with good basic 55 language and mathematical skills to benefit from more advanced levels of education and the quality of primary education must continue to be improved, quality enhancement should focus on lower secondary and secondary education. This is because the country is moving toward universal education to year XI, and year XI graduates need to be equipped either to enter the work force or postsecondary training or to continue in years XII and XIII, which prepare them for higher education. Spending on critical quality items such as books, teacher training, and school supplies could be doubled without creating an excessive budgetary burden. It would represent a long term investment in quality enhancement. 2.126 An unacceptably large proportion of pupils (70 to 80 percent) leave school without gaining certificates at O/L, which would signify to employers that they have completed a broadly-based secondary program at acceptable levels of achievement. This means that after eleven years in school, only three out of ten sixteen- to seventeen-year-old school leavers gain the credentials needed for nonagricultural jobs. The remedies are (a) for pupils who reach year XI (eventually almost all) to be provided with a better quality education so that they can pass the examinations; (b) for the examination pass marks to be gradually raised, as educational quality is raised, so that the O/L certificates are credible with employers; and (c) for repetition in year XI and XIII to be reduced so that resources can be released to increase quality and access to quality education. Equality of Educational Opportunity 2.127 The stark differences between the country's elite schools and the rest must continue to be addressed if all children are to have equal opportunities to reach their educational potential. Entirely eliminating the very small, uneconomic schools is difficult as they serve a valuable social purpose, despite their generally poor quality, in serving otherwise disadvantaged communities. However, a determined thrust is needed to reduce the number of schools with secondary classes with very few pupils. The public needs to be made aware that such schools do not provide equal opportunities for secondary education for their children because of the restricted range of subjects offered, the poorer teaching, and the lack of peer stimulation. With decentralization, local authorities have the opportunity for participation by parents and communities in deciding how to consolidate the small schools and set up the centers of excellence. 2.128 Equally problematic is the status of the large, well-endowed schools, both public and private. They demonstrate what can be done given good human and physical inputs, but serve only a small segment of society. The forthcoming sector strategy should-provide guidelines on the measures that need to be taken to reduce inequities in resource allocation between schools, for instance, perhaps rich schools could "adopt" poorer ones. Leadership is required at the highest levels to mobilize reform efforts and to change the climate and values that countenance inequalities. Policies to remedy local inequities should be based on local needs assessments, public opinion, and broad-based consensus building. Remedial measures should be undertaken gradually and with careful monitoring. Access to Upper Secondary Education 2.129 Access to upper secondary education, which is intended to prepare pupils for higher education and advanced training, is too restricted to capitalize on the full potential of youth. Out of 100 entrants to year XI, only 5 or 6 continue on to A/L. Of A/L pupils about half attain a university qualifying mark of 180, but of these only about one in ten is subsequently accepted for and enters higher education. This is a waste of talent. 56 2.130 Since the system should ideally educate students to their full potential, a certain proportion should obtain an upper secondary education without going on to higher studies. However, the role of the education system is not to solve unemployment problems by keeping people in school if they are not learning anything useful. Too tight a restriction of secondary and higher enrollment is neither educationally sound nor politically viable. Wider access to A/L studies cannot, however, mean immediate and completely open access to higher education. Finally, wider A/L access needs to be planned in line with the planned growth of postsecondary education and training and appropriate employment opportunities, preferably at the provincial level. Private Education 2.131 The legislation governing private schools clearly needs to be updated. To maximize the contributions that parents and others are prepared to make to education, legislation should not prohibit those who wish to do so from opening self-supporting schools whose development and operating costs would not be a burden on the state. If private schools are to be allowed to operate freely, should government require such schools to have a licence before they can function? If so who should issue the licence, central or provincial governments? These are difficult questions. The state has an interest in ensuring that private schools meet certain minimum educational and health standards, which a licence might be thought to help ensure. On the other hand the state does not always manage to ensure that state schools meet such standards. A licensing system could be expensive, and could lead to rent-seeking activities. 2.132 Any change in the legislation will be contentious, and runs the risk of leading to more restrictions on private education rather than less. However, the demand for new schools supported entirely by private sources is not likely to be so great that a change in the legislation would change the relative numbers attending private and public schools. Any licensing scheme would have to define a school very carefully, for example, should tutories be covered? As concerns tutories, can the authorities discourage their expansion and divert the resources to the public school system? The mission understands that the National Education Commission will examine these issues in its upcoming work program. 57 CHAPTER 3 HIGHER EDUCATION AND RESEARCH IN SRI LANKA A. Overview 3.1 The relatively high standard of general education has generated a demand for places in universities that has not been matched by the gradual expansion of the last twenty years. Not only is there a large, unsatisfied demand from qualified students, but the national participation rate of about 2.5 percent is much lower than that of comparable developing countries. Planning within the higher education system takes place without overall policy and direction and has, therefore, been short term and protective of the status quo. No effective formal mechanisms exist, either nationally or within the institutions, for quality monitoring and assurance. Traditionally the universities have been arts oriented, with inflexible curricula and course structures. Applied research and other contacts with the world of work have been minimal. 3.2 A high proportion (72 percent) of employed graduates work in the public sector; however, the expectation of a free education and subsequent employment can no longer be satisfied. The coincidence of unplanned growth in university places with the country's economic decline means that unemployment rates among graduates are currently very high. The Sri Lankan university graduate comes from a highly selected academic elite--2 percent of the age group--and is accustomed to success. The change from being sought after to seeker is not easy to adapt to. For various reasons, including the students' perception that they were not being given an education that led graduates to a welcoming labor market, student and staff unrest has been serious and endemic: in 1987-89 most universities were closed when an extremist political party (JVP) interacted with student movements. 3.3 Despite Sri Lanka's shift toward an industrial base in the past decade, with industrial goods now constituting 50 percent of total exports, industry remains low-technology and narrowly based. The lack of technological, managerial, and entrepreneurial skills, together with inadequate training and unfocused research, contribute to the weakness of the industrial sector. Industry carries out little research and government research and development centers have few links with industry or overseas research. There is also a shortage of modem equipment, and resources for maintenance and repair are inadequate. 3.4 In addition to the Ministry of Education and Cultural Affairs (MOECA) and the Ministry of Higher Education and University Affairs (MOHE), budget allocations for education, training, research, and allied services are made to more than thirty ministries and departments. These allocations cover the funding of specialized teaching and training centers and research units outside the universities. In 1989 the total recurrent allocation to the other ministries and departments under these headings was more than 1.5 times greater than the allocation to the MOHE, and was almost sixty times greater than the corresponding 1971 figure (annex 3, table 3-1). This enormous growth in education, training, and research outside the main ministries raises important questions concerning the overall efficiency and fragmentation of the system. It also explains, to some degree, the apparently low rate of national spending on higher education. 3.5 Of the approximately 3.5 percent of GNP and 11 percent of current government allocated to education, about 12 percent is for higher education. The higher education subsector is predominantly (about 95 percent) state funded. It has obtained some foreign aid for equipment, but has negligible 58 income from endowments and achieves minimal cost recovery. At present all tuition in the regular universities at the undergraduate level is free for Sri Lankan students, regardless of parental income. Some fees are charged for postgraduate studies and overseas students, as well as for the Open University and for external courses at the regular universities. About half the students in higher education receive support from scholarships based on parental income. To receive the maximum grant of SL Rs 1000 per month under these mahapola scholarships, the student's family income (1992) must be less than SL Rs 5000 per month. In 1988/89 the cost of these scholarships reached SL Rs. 46.282 million. Many rural students would not be able to attend university without their help, although a recent University Grants Commission (UGC) survey of students found that only 8 percent were from the poor community, defined as those whose parents receive food stamps, even though food stamp recipients represent about 25 percent of the population. 3.6 The absence of a consistent national planning framework, and hence of an overall policy and strategy, have characterized higher education and research activities in Sri Lanka. The government's approach has imposed a uniformity on higher education that has inhibited diversification and responsiveness. At the same time, the government has reacted to immediate and urgent pressures without proper consideration of achievable and sustainable long-term solutions. There has been no overarching plan for research activities, which have developed without effective coordination in response to ad hoc requests or funding provision. It is not clear whether the policy and planning vacuum is the cause or the consequence of the present highly fragmented and disjointed provision, but both research and higher education are characterized by compartmentalized decision-making; excessive bureaucracy; and inflexible, inefficient, and unresponsive resource provision. 3.7 Despite its present difficulties, higher education in Sri Lanka includes centers of considerable strength that have consistently produced high-level professional manpower and research. There is, however, a keen awareness of the urgent need to reform and improve the system. Indicative of this are the recently commissioned reports on science and technology in development (Presidential Task Force on Science and Technology Development 1991) and on tertiary education (Somaratne et al; Marga Institute 1991) which reviewed the sector's performance and its relevance to national social and economic needs. Higher education in Sri Lanka has traditionally had a strong academic, rather than vocational, emphasis. However, this appears to be changing. For example, the formal aims of the 1988-92 corporate plan for university education (University Grants Commission) emphasized that the all-important end to university education was the pursuit of truth and that this must subordinate the need to prepare students for employment. By contrast, the revised version of these aims in the draft 1992-96 corporate plan recognizes that the optimization of limited resources for national development, as well as the needs of the economy and society, require that university education should, as its major objective, meet social and manpower demands. There are other encouraging indications of a move away from a subsector driven by supply pressures and by student and parental demand to one driven by national needs. Examples of this shift are the introduction of new types of vocationally-oriented higher education establishments, and recent changes to allow arts students to follow employment-directed studies. 3.8 The difficulties involved in achieving fundamental change in the objectives of higher education and in overcoming serious resistance to such changes must not be underestimated. Unfortunately there is no firm evidence in the existing attempts to modify the system that the university authorities recognize the extent to which revitalizing and reforming both organizations and attitudes will be necessary to achieve effective and durable improvement. Nor is there evidence of the essential consistent and determined political and public support at the highest level. Extensive discussion and 59 consensus building will be required to resolve these difficult issues successfully. This process has recently been started. 3.9 The basic question for higher education is the rate at which the subsector should grow. A number of conflicting factors affect this decision and are difficult to reconcile: * Unemployment remains high and unemployment of educated youth is a serious social problem. Thus it is probable that an increase in university enrollment would lead only to an increase in the number of unemployed graduates. Yet the proportion of youth in university is low by international standards; * Sri Lankan industry does not have an extensive demand for highly educated manpower. However, it is widely believed that for an industrial takeoff to occur similar to that in the newly Industrializing countries (which is the national objective), a country needs a critical mass of people with a good scientific and technological education. * There is a rapid growth in enrollment under way. Yet no thought seems to have been given to how that expansion will be funded in the medium and longer term. * In a country where social pressures have recently led to extreme violence, there is concern about pressure from the number of people with Ordinary Level (O/L) and Advanced Level (AIL) passes who want to obtain further academic qualifications. However, there is the danger that if higher education expands there would be large numbers of unemployed graduates or university dropouts, who would themselves create social pressures. 3.10 Growth in the higher education system has been strongly resisted for many years by those involved in the university world. However, it now appears that the education authorities would like to see the system develop until enrollment reaches about 8 percent of the age group, a figure comparable with the 7 percent enrollment in Malaysia and the 8 percent in Singapore. What has not been specified are such factors as the rate at which the growth should take place; the nature of the programs that should be developed; the emphasis in their presentation; and, most important of all, how the expansion, which more than doubles the size of the system, will be paid for. Program innovations that could be considered include new four-year undergraduate and graduate university courses; two-year diplomas; external, part- time degree or diploma programs in universities; and expansion of the Open University provision. 3.11 Compared with many countries, Sri Lanka spends rather small proportions of its GDP (0.3 percent) and of its total public expenditure (1.3 percent) on higher education. However, in a country running a fiscal deficit of 10 percent of GDP, and with the low proportion spent on education, the result is that it is not easy to find extra resources for higher education from the public purse, at least in the short term. Thus, any growth in the system needs to be carefully designed to minimize public spending, to develop realistic funding sources, and to be matched by compensating savings elsewhere. 3.12 Other countries have resolved this problem by expanding private universities or by charging for attendance at public universities. In Sri Lanka, however, there is a strong feeling against charging for university education. The attempt to create a private medical school in the mid-1980s failed, for a variety of reasons (not all connected with the fact that it was private), following strikes by medical personnel and students. The school was nationalized to become part of an existing university. 60 Nonetheless, there are signs that the opposition may not be insuperable. Two small, private profit- making institutions linked to overseas universities are operating, although at present there are no nonprofit making private universities. The Open University charges for its services, as do other public universities for external courses. Although fees are currently low, there is an intention to increase the level of cost recovery. B. Institutions and Enrollments 3.13 Sri Lanka's higher education sector comprises nine public universities (annex 3, table 3-2), including the Open University, that offer a wide range of mainly four-year undergraduate and postgraduate programs and nine specialist higher education institutes attached to the universities, five at the postgraduate level and four at the undergraduate level. During 1991/92, nine regionally-based affiliated university colleges (AUCs) were inaugurated (annex 3, table 3-3), that provide two-year vocationally-oriented courses. Plans to set up a further sixteen AUCs have now been delayed indefinitely. The public institutions teach in English, Sinhalese, and Tamil. Recently the Eastern University started to offer external degrees in a number of disciplines. 3.14 The private sector is currently insignificant in size. It consists of relatively small units that offer few higher-level technical and vocational programs and specialist programs provided by professional institutions (annex 3, table 3-4). Of the three private institutions created to provide undergraduate programs, only two still exist, the Institute of Technological Studies and the Informatic Institute of Computer Studies (annex 3, table 3-5). The third, the medical school mentioned earlier, has become, as a result of the increasingly violent unrest against it, part of the University of Kelaniya. Organizational Framework 3.15 The Universities Act of 1978 and subsequent ordinances provide a regulatory framework for the authorization of degree-awarding institutions. The Universities Amendment Act of 1985 strengthened the possibility of recognizing institutions to award degrees, but prohibited private institutions from using the term university in their title. The University Grants Commission (UGC), also created by the 1978 legislation, has an overarching role in relation to the universities, their AUCs, and the higher education institutes. Its mandate is to plan, coordinate, allocate funds, and oversee the academic health of the universities and of higher education. It receives annual reports from the establishments; produces data on students, staff numbers, graduates, and performance; and submits annual reports, including financial estimates, to the MOHE. Although the MOHE has direct responsibility for higher education, it has traditionally delegated its responsibility for the universities to the UGC. An additional secretary has been appointed to the UGC charged with the inauguration, staffing, curriculum development, and resource provision of the new AUCs. 3.16 The delivering institutions are responsible for maintaining their own academic health and quality assurance within the UGC framework. There is very little evidence of this responsibility being adequately fulfilled, or of the institutions being accountable for their performance. For a number of years each university has prepared its quinquennial corporate plan. Unfortunately the universities are operating in a vacuum because of the lack of overall policy and strategy for the development of the subsector. Development plans in long-established departments focus mainly on perpetuating existing practices and procedures, and favor traditional mono- or bi-disciplinary degree programs. The universities function through a series of internal committees (senate, academic and faculty boards). In practice there is no serious attempt to develop and implement consistent parameters and standards for measuring and 61 evaluating quality and performance. There are no formal quality monitoring and control systems in place, no formal procedures for student consultation, no transparent policies and plans for staff development, and little contact with the society and world of work that the university is intended to serve. 3.17 All these factors contribute to, and demonstrate, the inertia and resistance to change that appear to characterize most of the universities. In many respects the high level of student unrest probably reflects the recipients' dissatisfaction with the system's academically autocratic and unaccountable nature, and the resulting low quality and outdated provision, as much as with their concern about high levels of graduate unemployment. Recently the UGC has created two subcommittees, one to explore changes within the universities and the second to oversee the development of the AUCs. Affiliated University Colleges 3.18 The AUCs (annex 3, table 3-3) were set up in 1991 to provide two-year courses as an alternative channel for postsecondary education. They cover a range of vocationally-oriented disciplines that offer a high probability of employment. At present they are affiliated to universities, but are administratively independent. Their directors are members of the university senate, and their boards of management include academic staff from the university of affiliation, as well as local officials and employer representatives. The courses were created by a number of specialist committees reporting through the additional secretary to the UGC. However, the curricula and syllabuses had to be acceptable to the university of affiliation. While a transparent validation of these programs is important, the danger of requiring validation by a university is its lack of experience with nontraditional study programs. Also the university may not give proper weight to input by potential employers. When a committee comprising established academics and employer representatives has to agree a study program, the tendency is to defer to the education specialists in developing curricula. Some, but not all, the curricula studied by the mission were unduly academic, and not sufficiently oriented toward practical application of the knowledge imparted. An exception was that part of the Air Lanka internationally accredited training program that had been incorporated into the travel and tourism course. 3.19 The AUCs are to award a diploma at the end of the two-year course and a certificate at the end of the first year for those who successfully complete the program, but do not wish to continue. Further debate has centered on the possibility of the best of the AUC diplomates being eligible to apply for entrance to a university undergraduate program. There is a view that this would devalue the AUC qualification, as well as add to costs because of the increase in university student numbers and the additional two years to graduation. Since the courses have not yet produced their first diplomates, it is too early to comment on the outcome. When the AUCs are better established they may offer extramural courses to satisfy local needs and develop interactive links with the local community. 3.20 In view of the universities' weakness in planning and quality assurance and their resistance to change, it is difficult to understand how they can effectively be responsible for the AUCs. The latter should be developed with a national status. They should have a level of resourcing that would enable them to develop new courses, methods, policies, and strategies related to economic need and employability. This would also encourage the universities to accept the need for fundamental review and revision of their own priorities and procedures. 3.21 In the absence of a long-term strategy for the subsector, the establishment of the AUCs appears to have had little impact on the underlying problems facing higher education, in that they have not induced the traditional universities to change their ways. They have also proved difficult to set up. 62 The resistance to their inauguration by students and staff is an indication of the inertia of the system and its resistance to change, and the power of pressure groups in Sri Lankan society. 3.22 The AUCs have been established in existing, publicly-owned buildings, chosen for reasons of geographical equity rather than for their suitability as institutions of higher education, and to minimize the investment costs required to provide reasonable facilities. Even though the MOHE is responsible for the UGC and has oversight of the twenty-five technical colleges, none of the AUCs has been sited in any of the technical colleges, many of which are under utilized and well equipped. Staff and students of the technical colleges opposed using them for the AUCs because of potentially different conditions of service for staff and stipends for students. Enrollment 3.23 Recent data on enrollment and outputs need to be treated with care as many universities only reopened in January 1990 following prolonged student unrest, and have been taking extra students and accelerating their programs to cope with the backlog. Clearly, however, the high literacy and participation rates at the earlier levels of education have raised expectations and aspirations, and increased the number of qualified applicants for places in higher education. Unfortunately, despite the rapid expansion of recent years (total enrollments have nearly doubled since 1987), capacity has not kept pace with demand. In 1989 more than 25,000 qualified students applied for university entry, of whom only 9,300 (36 percent) could be admitted, of whom 44 percent were women (UGC 1989, p. ix). The total degree and postgraduate level enrollment in 1989/90 was about 38,000, including 12,000 part-time students in the Open University. A full-time university enrollment of 26,000 comprises only 2 percent of the relevant age group. The median of all developing nations is about 4 percent, and that for the economically advancing nations of Asia is closer to 8 percent. 3.24 The system's recent growth and development has been driven by official desires on the one hand to make access to higher education more equitable, so that those who are best able to benefit are given the opportunity to do so, and on the other hand to expand and strengthen university-level vocational education and training. Sri Lanka recognizes that investment in its human capital is essential for economic growth and for both national and individual development. No rule of thumb exists by which to assess what proportion of its youth a country should provide with a university level education. Almost certainly it would be to Sri Lanka's advantage to have greater participation in higher education, but precisely what that participation rate should be must depend mainly on the financial resources available. An increase in the number of students entering higher education will accelerate the need to produce a different type of graduate equipped to meet the country's economic needs and to develop graduate employment opportunities. The AUCs are an important component of this policy shift. C. Planning and Finance 3.25 The present higher education planning process at the national level responds primarily to a mix of pressures from the suppliers of university education and from student and parental demand, with little apparent attention paid to the knowledge, skills, and attitudes sought by employers outside the public sector. One result is the significant number of unemployed arts graduates. Data and information bases are available to assist national planning, but there does not appear to be a group charged with the task of planning the development of the system as a whole, despite the existence of a series of institutions concerned with the growth of education and the higher education subsector (the MOHE, the UGC, plus, for example, the National Education Commission, the Human Resources Development Council, and the 63 Committee of Vice-Chancellors). Government initiatives, such as the introduction of the AUCs and the creation of significant training outside the ediidation mitisties, appear to have been short term and reactive rather than proactive. 3.26 Preliminary studies of the regulatory framework indicate that the system has potential flexibility, including the potential to generate and use additional resources, although there are constraints to efficiency. More transparent and specified systems for resource allocation and for quality assessment and control are urgently needed, particularly with a view to improving relevance. Finance 3.27 The MOHE gives the UGC an annual block grant to cover about 95 percent of the recurrent and capital allocations to its higher education establishments. The remaining income comes from postgraduate and external student fees, interest, rents, and sales. Income from endowments and consultancy is not yet significant, although some departments and faculties are expanding their activities in these areas. Noteworthy among these are the Textile Technology Department at the University of Moratuwa, which provides many services for the textile export industry; and departments of the University of Kelaniya, which work closely with the distilleries industry, and of the University of Peradenyia, which work on archeology in support of tourism; the University of Colombo Computing Centre, has designed software for television. 3.28 Until recently the financial allocations to the universities (annex 3, tables 3-6 to 3- 8) were made primarily on a historical basis. However, current trends are to base allocations on unit costs (annex 3, table 3-9). The distribution of funds within the universities is also based on the previous year's allocation plus an increment for inflation and additional staff. Staff costs currently account for about 75 percent of university costs. Of the capital expenditure, most is spent on buildings, with very small allocations for teaching equipment and books. In addition to the grants for the universities and AUCs, the MOHE also allocates funds for several research centers, scholarships abroad, and student travel. 3.29 The costs of creating and maintaining a quality higher education system are significant in terms of both physical and human resources. The staff establishment appears satisfactory overall and compare favorably with international norms of 1:10 to 1:24 full-time equivalent staff to full-time equivalent students depending on the discipline, although the number of vacancies is high. One reason for the high vacancy level could be because in some science and technology disciplines staff can obtain higher salaries overseas or outside the sector. Another reason could be because the funding system encourages universities to bid for more staff than they need, and then to transfer unused funds to other recurrent expenses. Significant investment is required to increase library stock- and technical and scientific equipment, to ensure the maintenance of buildings and equipment, and to launch a major development program for academic and nonacademic staff. Without such a program the quality of the students' learning experience will decrease. Research Funding 3.30 Information on levels of research funding is not available in any consistent or comparable format. The absence of research to support teaching in the universities is apparent, for example, in the arts subjects, where reference books and bibliographies are available only in English even though many students cannot easily understand technical English, and study entirely in Sinhalese or Tamil. Research in science and technology suffers from a lack of access to current information and modern equipment. 64 The diverse and separate methods of funding many of the research centers makes it impossible to assess efficiency. Some valuable applied research, however, is clearly being undertaken in some state research institutes. This confirms the need to rationalize and consolidate the fragmented and varied provision and to provide the resources necessary to support existing areas of excellence and to strengthen links between the best of these centers and higher education. Access 3.31 Access to higher education is centrally controlled and based solely on performance in the Advanced Level examinations. The emphasis on examinations has a major, but not necessarily beneficial, influence on secondary education. The open, but inflexible, selection methods and the fierce competition for places not only reinforce and entrench the highly academic syllabuses at Advanced Level, at the expense of more vocationally- and socially-oriented studies and activities, but inhibit innovation in teaching and learning methods. Since 1974 a complex geographical and merit quota system has been part of the selection process. It is designed to achieve equity by giving priority to poor districts, which are given a preferential allocation of places, with choice within districts made on merit. The allocations have been changed frequently: at present 40 percent of students are admitted solely on merit, the remainder being selected from their districts of residence. The effects of the quota system have not been analyzed. Some students admitted with marks lower than the normal admission levels have done well, but most are at a disadvantage. However worthwhile such preferential treatment to poor areas may be for equity reasons, they make the universities' task more difficult, and increase the pressure for entry by merit in other areas. 3.32 Entry is based solely on the number of points gained at Advanced Level. A candidate for an undergraduate or AUC program has to obtain a minimum of 180 marks, passes in three subjects, and not less than 25 percent in the fourth. For the courses where competition is high, those selected have much higher marks. Annex 3, table 3-10, shows the marks of the candidates admitted and the highest marks at which candidates were rejected, either because they did not come in the top 40 percent for a place based solely on merit, or because their district allocation (based on population density) was filled by candidates who obtained higher marks. 3.33 No reliable analysis is available to relate access policy to student performance or to failure rates, wastage rates or graduate employment. Information on pass rates (annex 3 table 3-11) indicates that significant numbers of students who enrol do not pass their final examinations. In the sample shown in the table, the published pass rate for medicine ranges from 63 to 80 percent. In agriculture the pass rates of around 50 percent demonstrate enormous wastage, whereas arts graduates appear to fare better with an average 80 percent pass. Law, with a 42 percent pass rate at Colombo, and science, with a 26 percent pass rate at Ruhuna, are at the bottom of the list. 3.34 Given these pass rates, the real cost of producing a qualified graduate is much higher than the unit cost per student. They also indicate that an improvement in pass rates would significantly increase the internal efficiency of the system and improve the use of resources. An increase in pass rates would reduce repetition, and allow an increase in output without expanding capacity. For example, the UGC draft corporate plan for 1992-96 (part IV) proposes that more than 300 additional medical practitioners should be trained each year, a figure that may be higher than the country needs. However, if the overall pass rate in medicine improved, the increase in trained doctors could be achieved without increasing capacity. As an example of the current wastage in the system, of the 414 medical students 65 entering in 1985, 120 did not qualify, even though these students are likely to have been among the best at Advanced Level. Delivery 3.35 The system has some establishments that compete effectively at all levels. The general impression is, however, that teaching methods are tied to chalk and talk, and do not enable students to develop the verbal and written communication skills or to acquire the practical scientific experience essential for employment. In arts subjects texts in the language of study are sparse and students rely heavily on dictated notes. Many of the capital-intensive facilities were established with bilateral support, but without recurrent funding. Thus, in science and technology disciplines much of the equipment is not functioning and lacks spare parts, essential consumables are not available, maintenance programs are sporadic, and suitably trained technicians are rarely available. Students therefore have little opportunity to experience today's technology and discoveries. For those students whose English is poor, current debates and views in their disciplines are not accessible, yet no proper remedial programs are provided. Where remedial programs in English are provided, the texts studied may not relate to the students' main discipline. The result is that students are not exposed to the full range of subject matter in their fields of study. 3.36 In the past academic staff were promoted mainly on their research output, which mitigated against staff investing significant time in a broader range of delivery methods. Even with minimal resources it is frequently possible to move away from the chalk and talk system. An encouraging development is that the criteria for academic staff promotion are being changed to include innovation and development in teaching methods. The introduction of relevant experience into more undergraduate programs (engineering, accountancy and finance, and rural medical practice) is also a positive initiative. Research 3.37 The organization of research in Sri Lanka is typical of that in many countries. It is distributed into three broad areas: higher education (universities); research centers (for example, standards and meteorology) that serve industry, commerce, agriculture, and natural resource-based sectors; and specialized national research and development centers. The first and last of these are funded by the government, while the second receives both private and government funding. Traditionally, research was concentrated in the universities and centers serving the main crops and natural resources. However, the emphasis has shifted with the rate and impact of technological change, the cost of research, and the changing nature and priorities of the universities. There are, however, many research-based institutes outside the higher education sector (annex 3, table 3-12). The mission of those research centers currently under the Ministry of Industries, Science, and Technology is the subject of a presidential task force whose report has been accepted. Follow-up action is expected to be finalized by the end of 1993. As a result, the missions of some research institutions are likely to be revised to satisfy current government development objectives. 3.38 The level of research activity in the universities is extremely low as a result of the shortage of funds and other resources, and of the rapid enrollment growth of recent years. There have been no concerted efforts to forge collaborative links between the universities and research units outside the sector. As a result university research is rarely targeted or externally funded. Some state-financed centers are underequipped and lack funds for consumable items and for the maintenance and repair of equipment. There has been significant investment in staff, facilities, and equipment in these institutes, 66 but they and their activities appear to be uncoordinated and fragmented, with few efforts to avoid duplication or to share scarce resources. D. Main Issues 3.39 Any reform and development of the higher education sector in Sri Lanka will require fundamental changes in methods and attitudes at all levels, and must address the basic issues of access, efficiency, quality, and above all, relevance. Other important and related issues are the availability of nongovernment finance for higher education and the role and nature of research. Proposals for effective and lasting change must therefore include an overall system of governance that will provide a clear, unambiguous statement of priorities and targets at national level; coordinate the main constituents of the system and integrate them with the society and economy they serve; translate national planning into institutional policies and strategies; create funding and reward mechanisms related to performance to direct and drive the system; increase emphasis on quality control, staff development, and consultations with students and employers; and introduce incentive schemes to improve the system's delivery in selected areas. Policy and Strategy 3.40 As already discussed, Sri Lanka has no overriding body to formulate long-term policy and strategy for higher education, although the National Education Commission is an important new advisory body. Instead policymaking and implementation have devolved, by default, to committees and establishments that have had neither the remit nor the membership to enable them to take a sufficiently broad or authoritative view. The policy vacuum has also adversely affected the roles and contributions of the variety of working parties that have been set up to study specific, usually highly focused, aspects of higher education. The lack of a consistent, high-level, policymaking framework for the sector is the main cause of the implementation gap between the identification and definition of problems on the one hand, and the formulation and implementation of successful solutions on the other. 3.41 There are obvious advantages in adapting existing structures and mechanisms, particularly when there is widespread awareness of the major weaknesses and a willingness and capacity to effect radical change. However, attempts to achieve the necessary radical reform run the risk of being frustrated by those institutions and personnel who have a vested interest in perpetuating current practices. A resolute and sustained commitment at the highest political level and a clear, unambiguous statement of objectives, and targets for the sector are prerequisites for overcoming these difficulties. A further need within the policy-making framework is to provide an operational infrastructure that will interpret policy and monitor performance for the whole sector, and that can relate effectively to other levels of education, to industry, and to other higher education institutions. This, in turn, will require data and open, transparent mechanisms for evaluation, quality assurance, and funding by performance and incentives. Access 3.42 Access to higher education in Sri Lanka has been determined by such factors as the need to expand provision rapidly while skewing it away from arts subjects toward science and technology, to provide social equity through regional quotas, and to maintain quality. Some higher education authorities have cited a target participation rate of 8 percent which, would imply having more than 100,000 students in the sector. At present the full- time student population comprises 26,000 students in universities and 2,500 in the AUCs (rising to 5,000 with the second year's intake in 1993). There are 12,000 Open 67 University students enrolled for a range of courses of different duration, typically not fulltime. There are also a few hundred students following professional undergraduate equivalent programs in other establishments. Thus an increase to an 8 percent participation rate could only be realized by substantial increases in the resources available, and by achieving a considerable increase in efficiency. Such an increase would take many years to achieve. Although it might eventually be realistic considering the number of qualified entrants not admitted to higher education and the development objectives that Sri Lanka has set itself, the authorities must study carefully how fast the system should grow in the meantime. The rate of expansion has significant implications for costs, financing methods and cost recovery, as well as for staffing, investment, the employment of graduates and so on. 3.43 At present students in the final years of secondary education follow an in-depth study of a limited number of subjects in preparation for the Advanced Level examination, which is intended mainly for selection to university. The suitability of this approach needs to be reviewed in the light of the overall educational needs of young people in a developing country. The content of the upper secondary course should also be reviewed in terms of the needs of future graduates from an expanded system of higher education, who will not find work in government, but in commerce and industry. In addition, the establishment of a common, broader university first year should be investigated, including compensating studies and an emphasis on study skills. A more efficient and appropriate transition between the secondary and tertiary levels should not involve additional study time; it should be based on a fundamental reappraisal and integration of practices and curricula at both levels. The participation and collaboration of staff from both sectors would be required to ensure practical and sustainable changes of the necessary magnitude. Any attempt to improve equity by introducing further regional or social group quotas would also require special steps to maintain standards. Efficiency 3.44 Improving efficiency in the use of all government resources allocated to higher education and research is a key issue in their future development. Additional state funding is not likely to be available, yet the pressure to expand access and to improve quality and relevance will persist. The first step toward a more efficient system is to set objectives and targets driven by national policy and strategy for all activities in the system. They should apply to all establishments and research units and their staff and should be accompanied by declared methods of assessing efficiency and apportioning accountability. The total package of research activities needs to be reviewed and rationalized with the aim of avoiding duplication, improving collaboration, encouraging the joint use of scarce resources, and fostering links with overseas research centers. The review should pay particular attention to forging close links between higher education, research centers, and the needs of the economy. To focus and direct these developments it will be necessary to collate a reliable and valid database and to devise appropriate efficiency indicators, such as unit costs, space utilization, ratios of staff costs to total costs, student pass and wastage rates, and some measure of research performance that can be applied realistically and consistently across the sector. Nongovernment Finance 3.45 An increase in efficiency alone cannot produce sufficient resources to sustain the necessary levels of growth and improvement. Some rearrangement of government budgetary allocations will help, but will not solve the problem. Nongovernment finance is the only other source of funding that can possibly provide significant and long-term additional revenue. Consideration must, therefore, be given to introducing user charges, encouraging private provision, and generating additional earned income. 68 These proposals would need to be developed and promulgated in a way that clearly demonstrated a commitment to enhanced access and employability and that protected by means of income-related scholarships and grants certain groups within the community. They could also reflect and sustain other areas of government policy for the sector. It would also be necessary to endow the existing higher education and research establishments with increased autonomy within the overall policy and strategy framework. Quality 3.46 Quality as applied to education is a multifaceted term. It may be applied to the nature of the provision, the resources available, and the standards of staff and delivery. Ultimately, however, quality in education is measured in terms of output, including the knowledge students have acquired and their capabilities: what they have learned and are able to contribute to their own and to society's general well-being. Institutional quality, by contrast, is measured in terms of the extent to which the performance of the system and its educational establishments matches their declared missions and objectives. In a system geared to the needs of a modern developing economy, and where resource limitations require priorities to be established, these objectives must emphasize work-related attributes that will be transferable and will be retained over a lifetime. In this context relevance becomes a major component of any assessment of quality. 3.47 Any measure of quality should include the following competencies: (a) the capacity for innovative thought and action so that knowledge and skills can be applied effectively and creatively to economic processes; (b) the confidence and ability to manage, or to work as a member of, a team, and with other specialists; and (c) the knowledge and confidence to choose among alternative courses of action when necessary and to draw reasoned conclusions from the information available. Previously the highly selective intellectually elitist system gave graduates access to careers as senior government officials or in higher education. With the expansion of the intake and the decline in the number of openings in these fields, different educational quality inputs are needed if universities are to lead to satisfying graduate employment. Research 3.48 To achieve proper integration of Sri Lanka's research capacity (annex 3, section B) and to generate a productive research community with clearly defined roles and responsibilities, several policy actions must be taken. The first is to set long-term and short-term objectives and targets for the system overall and for the institutions and personnel within it. A management structure is required that can ensure that research institutes and workers are accountable for the research they use. It should devise indicators and incentives to monitor and manage research performance. The policy should also set appropriate levels of resourcing based on open allocation methods. 69 CHAPTER 4 TECHNICAL AND VOCATIONAL EDUCATION AND TRAINING A: Institutional Framework 4.1 Public technical and vocational education and training (TVET) in Sri Lanka is characterized by the number of ministries involved and of institutions providing similar programs. As a result substantial duplication occurs, resources are thinly spread, expansion takes place without control, and links with industry are few. 4.2 To remedy this situation, the government recently established the Tertiary and Vocational Education Commission (TVEC) with wide powers and responsibilities for planning, advising on policy, and coordinating technical and vocational education in accordance with the Tertiary and Vocational Education Act.5 The TVEC is also responsible for determining the resources and facilities required; registering institutions; setting standards with respect to institutions, courses, staffing, facilities, and so on; and ensuring that training policy is implemented. The TVEC's mandate does not include the actual delivery of training. 4.3 In addition, the National Apprentice and Industrial Training Authority (NAITA) has replaced the former National Apprenticeship Board. NAITA's role is to plan, organize, and provide vocational training; to set standards; to conduct trade tests, and to advise the TVEC on vocational training. The respective roles of the NAITA and the TVEC regarding training policy should be clarified, especially whether it is desirable for NAITA to be responsible for vocational training as distinct from the TVEC's responsibility for vocational education, since education and training need to be a continuum if they are to lead to useful results. The government has asked the United Nations Development Programme and the International Labor Organization for technical assistance with respect to trade testing. 4.4 As required by the Tertiary and Vocational Training Act, the TVEC recently completed its first three-year development plan. However, as the plan was prepared without the TVEC having had a chance to evaluate the efficiency and quality of training or to analyze training needs or expenditures on training, it does not deal with policy and strategy issues. Instead, it makes forecasts and projections of training and placement of school leavers based on preliminary assumptions. Gender Disparity 4.5 The system's gender disparity is a discordant phenomenon. Women follow traditional women's courses, while men are found in those leading to traditionally male occupations. These disparities reflect and are reflected in the employment situation, where there are severe disparities in the nature of jobs occupied by women and men, as well as in levels of responsibility and wages. Enrollment patterns are reported to be changing slightly, but training managers generally do not recognize the importance of action to ensure that women are trained for a wider range of jobs. The TVEC, for example, does not have anyone specifically representing women's interests. 5. The term tertiary refers to postsecondary technical education and training provided by insututons that do not come under the Universities Act. 70 B. Training Providers 4.6 As already noted, a number of different ministries are involved in providing TVET. Their roles are described below. Ministry of Higher Education and University Affairs 4.7 While the general education system offers certain technical education courses as vocational subjects, the twenty-six technical colleges and four affiliated technical units run by the Ministry of Higher Education and University Affairs (MOHE) offer crafts, technician, professional, commercial, and business studies courses. This description is limited to the latter. The programs offered are at different levels and of different durations, and students may attend full time or part time (annex 4, table 4-1). 4.8 The technical colleges operate under the direction of the MOHE's Department of Technical Education, whose director reports to the secretary of higher education. Total enrollment in the colleges amounts to about 11,000 full-time students and 8,400 part timers, of which about 9,200 follow business studies programs,and the remaining 10,200 are enrolled in industrial and technical courses (annex 4, table 4-1). The dropout rate is high, averaging some 50 percent of students. 4.9 The technical college system employs about 750 technical teachers and instructors in several administrative grades. Placement in grades is based mainly based on academic achievement rather than on industrial and practical qualifications and experience. The system suffers from a severe shortage of qualified teachers, measured not only against the authorized complement of staff, but also the teaching load. Technical teachers with required industrial, pedagogical, and academic qualifications are rarely available. Consequently, facilities and state-of-the-art equipment provided to the system for newly introduced HNDE programs remain unused because of the absence of instructors. 4.10 Training designed to provide technical teachers to the technical colleges is not yet available in the National Technical Teachers Training Centre. This affects not only the technical colleges, but also most other TVET training providers, as the center is the only source of trained technical teachers and instructors. Not only are too few teachers trained, but the retention rate of technical teachers in the college system is low, and recruiting suitable trainers for the National Technical Teachers Training Centre is difficult because salaries are not competitive with those for comparable jobs in industry. 4.11 With respect to the curriculum and syllabuses, the content of many courses does not meet industry's requirements, for example, practical work tends to be so outdated that it lacks resemblance to modem industrial production activities. Consequently, even successful college graduates may have a hard time finding employment in industry. Workshop equipment is also outdated, except for some acquired under an Asian Development Bank project, some of which has not been installed. Ministry of Youth, Sports, and Culture 4.12 Through NAITA, the Ministry of Youth, Sports, and Culture is responsible for training technicians and workers through three formal training institutions and administering an apprenticeship training scheme for industry. 4.13 The formal training institutions--the Technician Training Institute, the Apprentice Training Institute, and the Automobile Engineering Training Institute--offer a variety of sandwich courses, ranging 71 from four-year technician training courses to two-year courses for skilled craftsmen and one- to two-year courses for automotive workers. All the institutes proVide industrial apprenticeship training in industry as part of their programs. Total enrollment is about 450 for the technician programs and 1,700 for the crafts programs, all full time (annex 4, table 4-1). 4.14 The three institutions possess a wealth of buildings and equipment, some rather modem, as in the case of the Automobile Engineering Training Institute and, to some extent in the Apprentice Training Institute, but the laboratory equipment in the Technician Training Institute is irrelevant and outdated. The NAITA points out, however, that most of the laboratory equipment used at the Technician Training Institute is still listed in the latest manufacturers' catalogs, and that it was recommended under the United Nations Development Programme/International Labor Organization technical assistance. All facilities are severely underutilized, and the Technician Training Institute is an example of extreme underutilization due to poor resource management. The NAITA points out that given that Technician Training Institute students spend a good deal of time in on-the-job training, the facilities are not as underutilized as may appear at first sight. The Technician Training Institute courses are a mixture of engineering theory, unsuitable for technicians, and of largely unsupervised practical work in industry. However, according to the NAITA, a United Nations Development Programme/International Labor Organization evaluation mission said that the standard of theoretical studies had improved, that the training was comprehensive and relevant, and that trainees were well supervised during the industrial training phase. The Automobile Engineering Training Institute needs to have closer links with the auto repair industry to set relevant priorities in the choices of programs. Instructors in all three institutions lack appropriate industrial experience, thereby hindering an efficient skills transfer process. 4.15 The apprenticeship program enrolls about 15,000 trainees, who are placed in industry in apprentice positions for six months to four years, depending on the complexity of the trade. This practical program is complemented by short theoretical courses in the technical colleges. About 130 inspectors follow up on the apprentices' progress. This number is insufficient to supervise the trainees appropriately. Most are left on their own, since the supervision capacity and commitment from industry itself is low. 4.16 The dropout rate is as high as 30 percent, and the retention rate of apprentices upon completion of the program is reportedly low, though the information is conflicting. Since apprentices have contracts with industry endorsed by the NAITA, tracing the number of apprentices being retained by industry would be fairly simple; however, this is not being done. As the apprentices are paid a government stipend of SL Rs 450 per month and there is no formal requirement for industry to contribute to the training costs nor to employ apprentices at the end of the program, there is a risk that the apprentices are used as cheap labor. Ministry of Labor and Vocational Training 4.17 The Ministry of Labor and Vocational Training offers supervisory and advanced skills training at the Foreman Training Institute in Colombo, which enrolls almost 300 trainees in three- to six- month courses (annex 4, table 4-1). The District Skills Training Centres, located outside the capital, offer courses in such fields as engineering and construction skills and automotive and machine crafts. These centers currently enroll about 2,500 trainees on a full-time basis for an average of twelve months. Mobile training centers offer shorter craft courses to about 4,300 full-time trainees, especially in carpentry, masonry, and dressmaking. 72 4.18 The Foreman Training Institute was originally established to train supervisors for industry, but after discovering that the large workshop area provided was not much use for training in-plant supervisors, the institute introduced advanced skills training. The institution's facilities are still underutilized. Its management is looking for ways to remedy this situation, presumably by introducing additional technical training programs. Most of the in-service trainees come from various government departments, but there has been no attempt to assess the quality of training by getting feedback from employers on changes in job performance after training. With respect to pre-service skills training, relatively large numbers of trainees have been entering the programs, but there is little evidence that the training offered responds to training needs or that the people trained are subsequently gainfully employed. Ministry of Policy and Plan Implementation 4.19 The Ministry of Policy and Plan Implementation offers vocational training to the construction sector through the Institute for Construction Training and Development (ICTAD). The institute coordinates the training, and relies on the MOHE institutes for theoretical instruction and on the NAITA for trade testing and evaluation. For the practical part of the programs trainees are placed with employers and supervised by ICTAD staff. This type of apprenticeship is financed partly by the employers and partly by the ICTAD, but employers are not obliged to retain the apprentices at the end of the training period. The ICTAD also conducts training for foremen and junior managers. At present about 2,000 ICTAD craft trainees are enrolled full-time in the technical colleges, 6,800 part-time trainees are on industrial practice, and another 800 or so trainees participate in short-term, part-time supervisory training (annex 4, table 4-1). 4.20 The quality of ICTAD training is limited by the capacity of the training institutions operated by its partners, the MOHE and the NAITA, particularly the lack of competence of instructors and trade testing staff. (The NAITA points out, however, that to date it has not received any complaints about the competence of its trade testing staff.) However, the ICTAD has done much to upgrade the training given. The ICTAD's mandate goes beyond training, and the institute coordinates technical manpower development, including training needs assessment, and is also active in setting standards and criteria for job and trade assessments. The ICTAD and its predecessor have been assisted by two World Bank- financed projects in construction management and training. Ministry of Handlooms and Textiles 4.21 The Ministry of Handlooms and Textiles has two institutes directly serving the textile industry, the Clothing Industry Training Institute and the National Textile Training Centre. The former offers training to machine operators at the craft level and to production managers and pattern makers at the technician level. For the short courses for machine operators, the annual throughput is about 11,200 trainees, while the technician-level courses, which generally require Advanced Level for entry, have an output of 120. All courses are pre-service as the garment industry shows little interest in releasing workers for in-service programs. Once trained, however, those completing the courses get jobs almost immediately, and graduates of the production management training in particular are in high demand. Some 35 percent of the institutes' instructors have been lost to industry during the last two years, which indicates that they possess much sought after industrial experience. The institute charges the trainees fees ranging from SL Rs 3,500 to SL Rs 5,000 for its short courses, which means that more than 60 percent of its recurrent costs are covered by fees. 73 4.22 The National Textile Training Centre not only provides training, but also testing and other consultant services to the textile industry. The center's board has an equal number of government and private sector representatives. Courses offered are at the technician level and require Advanced Level for entry. Currently one-year diploma courses with practical training are available in textile technology, textile chemistry, and textile testing, and the number of applicants far exceeds the forty-eight available places. The center also offers in-service, part-time courses and enrolls about 300 trainees from industry. Graduates are in high demand, and the center's entire output has so far been placed in industry. Instructors are well qualified and all have solid industrial experience, many from the Republic of Korea and Taiwan (China). The center charges fees ranging from SL Rs 3,000 to SL Rs 5,000 per course. Industry pays for in-service training. The center receives additional income from its consulting and testing services. 4.23 An interesting point is that the two public training institutions under the Ministry of Handlooms and Textiles are much more efficient than other centers and institutes described in this review. Apparently their close links with the rapidly growing textile industry induce them to offer programs that are relevant and in demand. Even though they charge fees rather than giving out stipends, there are many applicants who are encouraged by the good possibilities of employment in industry following their training. Other Ministries 4.24 More than twenty-five other ministries are involved in training in one form or another. Many of these focus on in-service and in-plant training for their own staff. The ministries of Rural Development, Cooperatives, Transport, Agriculture, and Post and Telecommunications have the largest training capacities. C. The Cost of Public Training 4.25 For the public TVET training, the total government annual recurrent cost is some SL Rs 420 million (annex 4, table 4-2). Information on capital costs is not always available, but appears to be relatively low except for the MOHE expenditures from an equipment-intensive technical education project financed by the Asian Development Bank. In most cases the salary component is high (about 80 percent of total recurrent costs for the MOHE) while the costs of consumable materials and maintenance are very low. The student grants component is almost SL Rs 100 million, constituting 25 percent of total recurrent costs. The breakdown of recurrent costs indicates that the system is inefficient, as skills training and technical education cannot be appropriately provided without adequate funds spent on consumable workshop materials and equipment maintenance. The high student grant component reveals a substantial subsidization of trainees. 4.26 Comparison of unit costs can be quite misleading unless similar courses and programs are compared. Across the board comparisons are meaningless given the substantial variations in teacher/student ratios and in the consumption of materials. In the technical colleges, which appear to have low internal and external efficiency, the average unit cost is also low, about SL Rs 5,000 per trainee year, while unit costs for a high-quality private course are about SL Rs 100,000. 4.27 In general, the total government financing of technical education and vocational training is spread too thinly, with too many institutions and ministries duplicating training programs, which by and large are not suitable for preparing trainees for employment. The need is for a training system driven 74 by employers' demand, giving increased financial support to efficient and relevant training, at the expense of outdated supply-driven institutions unable to adjust to the economy's needs. D. Issues 4.28 The main objective of any national technical education and vocational training system is to provide the economy with adequately skilled manpower in an efficient and effective manner. As a result of low awareness and unfavorable attitudes to what is perceived as manual work, many developing countries have yet to establish efficient manpower development systems that respond to demand from their labor markets. Sri Lanka is no exception, and if it aspires to join the group of newly industrializing countries in the not too distant future, comprehensive reform of the TVET system is an absolute necessity. 4.29 The current system of vocational education and training is wasteful and unresponsive to employers' needs because of the absence of a national policy, relevant strategies, and overall coordination. As a result, the provision of training is fragmented and characterized by inferior quality and widespread unemployment among graduates. Moreover, the lack of overall coordination of manpower development is demonstrated by weak linkages between education, training, and employment. Given the inadequacy of the government's system, one would have expected industry to take charge of its own training. Unfortunately, however, Sri Lanka's labor-intensive, low-technology industry does not see manpower development as a high priority, and hence the manpower development capability remains low. Manpower development is financed chiefly from the government budget, with negligible contributions from employers and beneficiaries. 4.30 The system has been slow to react to recent industrial developments and retains basically the same curricula and programs that in the past served primarily the public sector. Individual ministries decide on what programs to offer based on social demand rather industrial demand for specific skills. The trainees are mainly those who fail to enter university. The Ministry of Higher Education points out, however, that curricula for some of their training institutions were originally based on task analysis, using the American DACUM system. 4.31 The government is to some extent aware of these issues. It has set up the TVEC as the policymaker and coordinator of technical education and vocational training. Despite the TVEC's far- reaching powers and major responsibilities, it has yet to find its role and needs substantial strengthening to exercise its powers. Also, there is a risk that the ministries and agencies currently involved in training might resist being coordinated by the TVEC. 4.32 The lack of coordination and guidance and results in duplication in training provision, inadequate quality of trainee output, programs irrelevant to employers' needs, low capacity utilization, and poor administration of institutions. Many technical teachers have left for the Middle East, and many of those remaining are not well trained pedagogically and lack industrial experience. These shortcomings have led to unacceptably low internal efficiency within the system. 4.33 In terms of the necessary links between the training system and education on the one hand and employment on the other, the different elements of the system are inward-looking, attending more to their internal problems than to external links. While exceptions exist, the system is largely viewed by employers as irrelevant, and low-quality training programs do not help raise the level of the work force. 75 Also, when employers do provide feedback, it is little appreciated and seldom acted upon. Unemployment among graduates remains high, so the system has low external efficiency. Enterprise Training 4.34 The low awareness of the importance of training and manpower development in private industry means that meaningful enterprise-based training has not been established, and that most workers recruited to labor-intensive manufacturing industries are female secondary school dropouts, with no previous training. The need for supervisors and junior managers in the rapidly expanding garment industry is growing, but training capacity in this field is insufficient. 4.35 Under these circumstances, one would have expected that private sector training would develop. As yet, however, this does not seem to be happening, with two types of exception. Expensive computer training and high-level engineering and commercial courses at the diploma and degree levels are often run by institutions affiliated with foreign universities. Other private institutions also charge high fees for training offered in technical subjects to cater to unemployed people who seek training as a means to get a job in industry, but due to a lack of supervision, the training tends to be of low quality. 76 CHAPTER 5 EDUCATION EXPENDITURE AND FINANCE Enrollment and Expenditure Growth 5.1 Sri Lanka achieved its remarkable progress in education during the last three decades by policies of (a) free education from the primary through the tertiary level; (b) a generous, untargeted student welfare (midday meals, transport subsidies, scholarships); (c) heavy investment in school buildings giving an excellent infrastructure coverage; and (d) state assistance for much of the limited private school system. These policies have made education an almost exclusive government responsibility, where students are entitled to free education regardless of income level, and with little effective cost recovery. The long history of these policies has created strong resistance to any effort to change them to reduce the fiscal burden. 5.2 Enrollment expanded substantially through the 1960s and early 1970s due to population growth and increasing student coverage. Enrollment stabilized during the 1980s, as population growth slowed, and gross enrollment reached 100 percent for primary education and 60 percent for secondary education. As a result of the recent fertility decline, the number of births decreased by an average of 3 percent annually during 1983-1989; the number of students entering year I decreased by more than 1 percent (the lower rate reflects the continued increase in participation) during 1989-91, and is projected to continue to fall. 5.3 The education budget, both recurrent and capital, increased significantly during the buildup stage of the 1960s and continued increasing during the 1970s. During the 1980s, it continued to expand at a lower rate, but still averaged 4 percent annually in real terms. The education budget has been growing in parallel with the growth of overall government spending; its share in the government budget fluctuated between 8 and 10 percent from 1982 to 1991. The ratio of spending on education to GDP reached 3.2 percent in 1989; it subsequently fell, to 2.7 percent of GDP in 1991, but increased again to 3.2 percent in 1992 and 3.8 percent in 1993. In 1993, total education expenditure was SL Rs 14.1 billion (US$287 million), 8.1 percent of total government spending (annex 5, table 5-1, and figures 5-1 to 5-3). Future Growth in the Education Budget 5.4 The shares of education expenditure in the government budget and of the GDP are far from excessive when compared to other Asian countries, and indeed appear even lower when compared with other developing countries with similar income levels, although the ratio to the government budget is low partly because total government expenditure is a relatively high part of GDP (31 percent). Furthermore, unit costs as a percentage of per capita GDP. 8 percent for primary education, 11 percent for secondary education, and 85 percent for higher education, are below comparable ratios in some other Asian countries. 5.5 GDP grew by 4 percent per year in real terms during 1985-91. Thus, to maintain education expenditure as a constant proportion of GDP would more than enough to provide the projected 3 percent annual education budget growth required to provide quality improvements in general education and university expansion (annex 5, table 5-21). Thus, under these assumptions, and if teacher recruitment can be contained, the required growth in education expenditure could be sustainable without an increase in the education budget's share of GDP. Given the fiscal deficit and the government's agreement with 77 the IMF and the World Bank that it will restructure the public budget and improve the efficiency of expenditure, however, expecting total budgetary expenditure to increase as fast as GDP may be unrealistic. Achieving the objectives of the education sector might therefore require an increase in the proportion of public expenditure devoted to education. 5.6 The government managed to decrease the ratio of public expenditure to GDP from 34.5 percent in 1988 to 31.8 percent in 1991, and the ratio of the deficit to the GDP from 15.7 percent to 11.5 percent for the same two years. The government is committed to continuing with public expenditure reforms and further decreasing the ratios of fiscal expenditure and deficit to GDP to 27.4 percent and 6.4 percent, respectively, by 1995. Maintaining public spending on education during these reforms will be important, although undoubted pressure on the education budget will limit its growth. The MOECA would have a difficult task in justifying an increase in the education budget, especially when the number of students in general education is not expected to grow, and even to decline, in the coming years. Thus, the issues of resource utilization, cost reduction, and additional resource mobilization must become more important in the coming years if government is to finance the needed improvement in quality. A coherent strategy based on sector needs and priorities is essential. The Education Public Investment Program 5.7 The Ministry of Policy Planning and Implementation prepares 5-year public investment programs (PIP) for the education sector. Annex 5, table 5-2 shows the proposed allocations for 1992-96. The annual growth rate of the education PIP is 2.6 percent from 1992 to 1996; a reasonable figure given that the secondary and higher education systems are still growing and that quality upgrading of the primary and lower secondary levels is needed. This growth rate is below GDP growth forecasts, and so should be sustainable. The proportions of total education expenditure to GDP and to government spending remain low by international standards. Foreign assistance to education in the PIP is projected to remain about 25 to 30 percent of capital expenditure. 5.8 The PIP is difficult to interpret since much of the expenditure on general education may be hidden in the SL Rs 600 million allocation to the provincial councils. Comments on the other items follow: * The justification for new buildings for the national schools may be small, but the amount allocated (SL Rs 30 million in 1993) is also relatively small. The national schools are already relatively well off. There is a proposal to transfer some schools from the provinces to the national system. If so they will need a budgetary provision. * Further information is needed on what the Youth Commission component (SL Rs 400 million a year) includes. Some of the commission's recommendations may not be cost- effective. * The ongoing IDA and Swedish International Development Agency projects seem appropriately budgeted. * The teacher education item is relatively small (about SL Rs 50 million a year, but how it will be used will need careful scrutiny in the context of the ADB and IDA projects. The programs for training the mass of newly recruited teachers are inadequate, and funds for facilities and programs will be needed. Existing centers are underutilized, but possibly 78 inappropriate. Sri Lanka will undoubtedly have to put much more money into training teachers, but not necessarily into buildings. * Further discussion is needed about the justification of further investment in buildings for technical colleges, since the existing ones are underutilized and have inappropriate programs. Some of the planned expenditure shown, however, may represent ongoing ADB and German projects. Careful analysis will be needed in the context of the Vocational Training Sector Reform Project, which is being prepared for IDA financing. A major objective of this project will be rationalizing sector expenditure. The Tertiary Vocational Education Commission, which was set up for this purpose has a vital role in coordinating public expenditure in the subsector. * The Examinations Board will receive a new building, which it greatly needs, as part of the ADB project. This should be shown in the PIP for 1994-96. * A major expansion of the higher education is under way, and the PIP should provide more details. The University Grants Commission (UGC) heading includes a reasonable allocation for repair and maintenance of SL Rs 120 to SL Rs 175 million annually, but the construction of new buildings needs detailed examination and justification by the UGC. Two proposals that do not appear in the PIP are under study by the authorities: a technological university and a new medical school. Both need careful review as their justification is by no means evident. However, the recently established affiliated university colleges (AUCs) need some expansion in buildings and equipment, which does not seem to be reflected in the PIP. Capital Expenditure by Type 5.9 Capital expenditure in the 1992 budget (SL Rs 1.9 million) was mainly for construction and rehabilitation of buildings, acquisition of equipment and furniture, and capital grants to the provinces. More than half of the expenditure was for new, large buildings, for example, for the Library Services Board and for the National Institute of Education. Equipment and furniture, about 18 percent of total expenditure, was mostly for the newly constructed buildings. The capital expenditure channelled to the provinces for school buildings and other investment expenditure, SL Rs 500 million in 1992, represented 27 percent of total sector capital expenditure. It includes expenditure financed by donor agencies. Recurrent Expenditure 5.10 Unit costs have increased in recent years, as recurrent education expenditure has increased steadily in real terms. Recurrent spending increased at 3 percent per annum during 1985-91 in real terms, compared with a 2 percent annual growth in enrollment; 1992 saw a real 19 percent increase, and although spending fell in 1993, it was still 13 percent higher than in 1991. The expansion in recurrent costs was mainly due to the increase in the teacher salary bill for the increasing number of teachers recruited, and to student welfare programs, especially mid-day meals and the 1993 school uniforms program. By contrast, quality enhancement expenditures, such as those for school supplies and equipment, teacher training, school supervision, and administration, have gradually fallen. The overall spending figures mask major shifts in the recruitment of teaching and nonteaching personnel that are related more to political imperatives than to the needs of the education system. 79 5.11 Because the structure of the Sri Lankan school system does not follow the classical division into primary, secondary, and higher education, it is difficult to be precise about allocation of expenditures among the different levels of education. Mission estimates show that total recurrent expenditure by MOECA and by provincial administrations in 1991 and 1992 were divided approximately 38 percent for primary education, 52 percent for secondary education, and 9 percent for the university level. The high spending on secondary education reflects the high secondary participation rate. 5.12 Resource allocation vary widely between small and large schools and between rural and urban schools. Usually small and rural schools suffer from a lack of adequate expenditure on school facilities, equipment and teaching materials. The rapidly growing parental expenditures on private tuition and the demand for private education reflect the lack in quality. 5.13 An important initiative introduced by the government is that of school development boards. These boards are being set up for each school, and are an attempt to integrate schools into the community. The boards are composed of parents, community representatives, and teachers. They manage school development funds, which are raised from the community and provide the schools with resources for minor maintenance and other expenditures that they have otherwise been unable to meet. It is noteworthy that even this mild attempt to seek a contribution form the community met political opposition. Capital Expenditures 5.14 Capital expenditure on education declined substantially, 6.0 percent per annum in real terms, between 1985 and 1991, while total public capital expenditure fell at 3.5 percent per annum. The share of education in public capital expenditure has remained between about 3 and 5 percent. Since donors have financed much of capital spending on education in recent years, these figures are closely related to the phasing and implementation of donor financed operations. Actual spending has consistently been below budgeted levels. The difference increased over the period, and by 1991 the actual expenditure was only half the allocated amount. 5.15 A comparison of actual and budgeted expenditures for 1987 to 1991 (annex 5, table 5-3) shows that capital spending has consistently been below budgeted levels. The difference increased over the period, and by 1991 the actual expenditure was only half the allocated amount. By contrast, actual recurrent expenditures during the last five years was close to or exceeded the budgeted level: in 1990 the actual recurrent expenditure was 42 percent over the budget, following rapid additional teacher recruitment and introduction of the mid-day meal program. The Education Budget 5.16 Following the decentralization of administrative and financial procedures and the devolution of authority to the provinces in 1989, the MOECA's own budget represents only part of total public spending on education. The centrally-funded public expenditure program for education consists of the MOECA's budget, the block grants of the Ministry of Finance gives directly to the provinces, and certain welfare expenditures that are included in other budgets of other ministries. The 1992 total recurrent expenditure budget of SL Rs 11.2 billion consisted of SL Rs 5.1 billion in centrally-funded expenditure, and SL Rs 6.1 billion in block grants to the provinces. Annex 5, figure 5-4 shows the structure of the recurrent budget in 1992. 80 5.17 The centrally-funded expenditure includes (a) the MOECA's general administration, (b) examinations and textbook production, (c) expenditure oh the national schools at all levels of general education, (d) teacher education (both colleges of education and teacher colleges), (e) technical colleges, (f) the mid-day meal program, and g) allocations to the universities and the affiliated university colleges (AUCs) through the UGC. Furthermore, capital expenditure for all types and levels of education (including the provinces' share) is centrally funded. The block grants to the provincial councils cover the recurrent expenditure of general education (except of the national schools). The largest part of these expenditures covers the wages and salaries of teaching and non teaching staff. 5.18 The MOECA prepares its own recurrent and capital expenditure budgets following standard detailed formats. The recurrent budget estimate is usually based on previous years, whereas capital expenditures include details of approved and ongoing projects. The block grants are calculated on the basis of detailed expenditure estimates prepared by the provinces and reviewed by the MOECA. They are finalized by the finance commissions of the Ministry of Public Administration and Home Affairs and the Ministry of Finance. The MOECA's role in monitoring provincial expenditure is not clear although it is responsible for implementing education policies in the provinces, such as those related to school meals, textbooks, and curricula. It is the Ministry of Finance that monitors provincial expenditure (to the extent that it is monitored at all). 5.19 The intensity and speed at which the government has decentralized has created substantial difficulties for the education administration in the provinces, which makes control of expenditure extremely difficult. The process increased the responsibilities of the provincial councils and complicated the obligations of the provincial education administration: the provincial directors became responsible both to the provincial secretary and the minister of education, and to the central MOECA. The decentralization was also followed by a rapid expansion in the recruitment of nonteaching staff, frequently with minimum qualifications, and to an increase in the provinces' financial burden. Most provinces are still without sufficient equipment and facilities to cope with the pressure of additional administration work, and are far behind in providing the MOECA with required statistical information. In the rapidly evolving decentralized administrative environment, levels of decision-making on general education expenditure and arrangements for control of expenditure and arrangements for control of expenditure remain uncertain. Better financial decision-making and monitoring processes are needed to improve the use of public resources. Centrally-Funded Expenditure 5.20 Since decentralization in 1989, the MOECA has only published details of centrally-funded expenditure.on education. Details of provincial expenditure for 1990, 1991, 1992 were published by the provinces and gathered (although with many delays). The centrally-funded budget is divided into four categories: MOECA expenditure, contributions to the universities through the UGC, allocations to the Examinations Department, and allocations to the Education Publications Department. The total recurrent program allocation in 19992 was Rs 5.10 billion, of which Rs 3.85 billion was earmarked for MOECA expenditure, followed by the UGC (Rs 1.00 billion), and the Examinations Department (Rs 200 million). 5.21 The relatively small allocation for Education publications Department (Rs 4 million) represents that department's administrative costs. Allocations for textbook printing and publication, carried out under the auspices of the commissioner of education publications, were Rs 225 million (annex 5, table 5-4), financed by contributions from the textbook subsidy, and by purchases by secondary students and schools. 81 5.22 The MOECA's general and technical education expenditure (Rs 3.9 billion) is divided into four main programs: general administration (Rs 1.7 billion), general education (Rs 1.8 billion), teacher education (Rs 100 million), and technical colleges (Rs 200 million). Annex 5, table 5-5 sets out detailed expenditure for 1991 and 1992 using the budgetary classification used in Sri Lanka. It shows the following points: * Aside from the cost of MOECA staff and functioning, the main expenditure within the MOECA's general administration program (Rs 1.66 billion) is on student welfare services, such as the mid-day meal program. * Within the general education program, Rs 1.55 billion represents the salary (Rs 860 million) and other operating costs of national schools.' It is also includes grants and contributions (Rs 640 million) for the free textbook program and for student transport subsidies, and for some private schools, such as the Buddhist-sponsored pirivena schools (Rs 186 million). The same program also includes allocations for in-service teacher training (Rs 90 million). * The teacher education program (Rs 119 million) represents expenditure on pre-service training and incorporates the disbursement on the sixteen three-year teacher colleges and the eight two-year colleges of education. A large segment of that expenditure is budgeted for salaries (Rs 90 million); the second largest component is for transport, utilities, and communications expenses (Rs 23 million). The expenditure on teacher training programs is quite low. Allocations for in-service training were 2 percent and for pre-service training were 3 percent of the total MOECA recurrent budget in 1992. A very small proportion of teacher training expenditure is allocated for school supplies and requisites (1.2 percent) and for repairs and maintenance (1.1 percent). * The technical education ("higher education") program (Rs 202 million) relates to the twenty-five technical colleges sponsored by the MOECA. Salaries make up almost half of the technical college recurrent budget (Rs 92 million), followed by Rs 49 million for transport and communications. The budget contains a substantial provision for expenditure on supplies for the technical colleges (Rs 18 million), that is, 9 percent of the technical education allocation. Provincial Expenditure 5.23 The block grants (61 percent of general education recurrent spending) assigned to the provinces and administered by the provincial education departments cover the recurrent expenditure of general education schools (except the national schools and subsidized private schools) at all levels. Data on provincial expenditure for 1990 and 1991 and the estimates for 1992 collected for each of the eight provinces (annex 5, table 5-6), show total provincial education expenditure in nominal terms of Rs 5.3 6/The MOEHE is responsible for operating thirty-six national schools, throughout the country, with about 200,000 students. These long-established schools typically posses excellent facilities and good quality teachers, and produce good results. Competition for entry is intense. 82 billion in 1990, Rs 5.7 billion in 1991, and Rs 6.1 billion in 1992, representing decreases in real terms of about 6 percent per annum. 5.24 A large proportion (97 percent) of provincial expenditure is for the salaries of teaching and nonteaching staff. What is left of the budget is usually spent on transport, communications, and travel (2 percent), items such as teaching materials and operations and maintenance receive minimal shares, less than 1 percent (books being financed centrally). 5.25 The Rs 30 annual provincial expenditure per student on nonsalary items (excluding books, which are centrally financed) is low compared to salaries Rs 1,370 annex 5, table 5-7. There are wide discrepancies in expenditure patterns among provinces. For example, per student expenditure on instructional materials in Sabaragamuwa province is five times that in North East province, and spending on repairs and maintenance in North Central province is five times the level in North East province. 5.26 Average teachers' salaries in 1991 show wide variations among the provinces. The highest averages, found in the Western province (Rs 42,00), is double that for Uva province. Since teacher salaries are based on levels of education, training and experience, these discrepancies indicate the concentration of qualified, well trained, and experienced teachers in provinces with more attractive living conditions. C. Teacher Recruitment 5.27 The massive teacher recruitment since 1989 (about 50,000 new teachers), and the large numbers who retired in 1991 in response to a public administration reform program (about 12,000), have created major structural chances in the teaching staff. The sudden departure of experienced, trained teachers has resulted in severe shortages of subject teachers in secondary schools and of qualified teachers in primary schools. However, the substantial increase in the overall number of teachers was faster than the growth in enrollment, resulting in a steady decline in the already relatively low overall student/teacher ratio (annex 2, table 2-10). The student/teacher ratio in general education (primary and secondary) declined from 1:28 in 1988 to 1:24 in 1991 and 1:22 in 1993. 5.28 Most of the newly recruited teachers are young and untrained for the primary schools. Most were recruited as trainees, meaning they have to serve four years before being eligible to enter the teacher training colleges. As a result of these recruitment and training policies, the ratio of untrained to total teachers has doubled. The need to absorb the increasing numbers of untrained teaches when they become eligible for training will be a challenge to the teacher training colleges. Some political leaders have announced that the trainee teachers will be made permanent without waiting. 5.29 Despite the massive recruitment, shortages of general teachers still exist in remote and rural areas, as do shortages of teachers for years VI to XII and in subject areas such as English and sciences in both rural and urban areas. The young women who represented three-quarters of the newly recruited teachers may find it difficult to fill vacancies in remote areas. Discrepancies in the distribution of teachers among provinces are wide, and the highly populated urban provinces, (for example, Western and Southern provinces), still have substantial teacher surpluses. 83 The Cost Implications of Teacher Recruitment 5.30 Teacher recruitment has contributed to more than one-third of the increase in the salary bill during the past give years (annex 5, table 5-8). The trainee teachers will add more to the salary bill (Rs 355 million) as four years after their retirement date they become eligible to receive full teachers' salaries. If teacher recruitment could be confined to attrition, savings in salaries would reach over Rs 12 billion,,17 percent of 1992 salary costs. 5.31 If the teacher recruitment policies of the past few years were to continue, the 1992 salary bill for general education would double by the year 2000. Growth in the overall sector budget would increase to an unsustainable 6.4 percent per year (annex 5, table 5-9 and figure 5-5). In addition, continuing the recruitment of trainees with at the most secondary qualifications would have a substantial negative effect on the quality of teaching, and would accentuate the problem of training by further increasing the number of untrained teaches. Furthermore, the increasing number of teachers in the system, the declining number of primary students, and the stabilization of the number of secondary students would continue to decrease the already relatively low student teacher ratio. 5.32 Teacher recruitment should be frozen for the time being, while the government determines a redeployment policy. This policy should be based on an analysis of the numbers and qualifications of existing teachers, their current deployment, attrition rates, training capacity, and similar facts. The MOECA needs to establish priorities for current emerging shortages of specific qualifications; and to adopt policies that would increase teachers' productivity, such as reducing absenteeism, increasing the teaching load, and taking effective measures to redistribute teachers from surplus to shortage areas. Surplus teachers who cannot be redeployed should be transferred out of teaching or out of the public service using existing redundancy legislation. In the longer term, however, new employment policies for teachers are needed. 5.33 The education authorities need to put more emphasis on in-service teacher training. A coherent training plan is needed for the massive numbers of recently recruited trainees, especially n view of the bulge of trainee teachers who will shortly become eligible for in-service training. Training policies for newly recruited teachers may need to be revised, for example, by reducing the number of years trainees have to serve before becoming eligible for training, and reducing the length of training courses. Salary Growth 5.34 Expenditure on salaries for teaching and nonteaching staff in general education increased by 6 percent per year in real terms during 1985-92, but is proportion of total recurrent expenditure on general education declined from 76 percent to 71 percent during the same period, since expenditure on mid-day meals and transport subsidies increased rapidly. Expenditure on salaries had remained almost constant between 1985 and 1987, increased by about 12 percent per year during 1988-89, remained constant during 1990-91, and increased by 15 percent during 1991-92. 5.35 There were four major changes in salary expenditures between 1988 and 1992: (annex 5, table 5-10). * In 1988 the government introduced a new salary scale for civil servants, with an average increase of about 30 percent over the old scale, which raised the salary bill from Rs 2.7 billion to Rs 3.6 between 1987 and 1988, a real increase of 16 percent. 84 * The massive increase of 33,000 teachers during 1989-90 (including the 25,000 recruited as trainees in 1990) increased the salary bill from Rs 4.3 billion to Rs 5.0 billion. The increase in expenditure was at a lower rate (17 percent) than the increase in the number of teachers (23 percent), since most of the new recruits received low salaries. However, when they are classified as teachers, they will add Rs 240 million to the 1994 wage bill. * Expenditure on salaries increased slightly, from Rs 5.0 billion to Rs 5.5 billion, between 1990 and 1991 despite the decline in the numbers of teachers as a result of the massive retirement in 1991. The increase was mainly due to the 100 percent increase in cost of living and subsistence allowances for civil servants in 1991. * Salaries increased from Rs 5.5 billion to Rs 7.0 billion between 1991 and 1992, mostly as a result of recruiting an additional 15,000 teachers (12,000 as trainees) in 1992. By 1996 when the trainees become teachers, they will increase the salary bill by Rs 115 million. 5.36 The government introduced a new salary scale for civil servants on January 1, 1993, with an overall increase of about 30 percent. The new scale includes eight groups for teachers and three classes for principals and education administrators based on training, level, and education. These groups and classes comprise a wide range of salary sales, with salaries increasing progressively with length of service. The new scale still shows wide differences between the salaries of teachers and of comparable civil servants, for example, the average annual salary of teachers, Rs 41,000 is less than half the average salary of education administrators, Rs 88,000, and a university graduate recruited as a teacher gets Rs 2,050 per month compared to Rs 3,000 for a university chauffeur. Other Recurrent Expenditure 5.37 Total recurrent centrally funded and provincial expenditure of Rs 10 billion in the 1992 budget consisted mainly of two categories: salaries and wages (Rs 7.0 billion) and grants, contributions, and subsidies (Rs 2.6 billion) (annex 5, table 5-11). The category of grants, contributions, and subsidies consisted of student welfare programs, such as mid-day meals, scholarships, and transport subsidies. In 1993 a school uniform program was also introduced. Including the school uniform program, student welfare programs will cost about Rs 3.2 billion in 1993, 30 percent of total recurrent education budget. 5.38 The mid-day meal plan, one of the comprehensive safety new programs the government in 1989, is currently the most expensive student welfare program; expenditure reached Rs 1.5 billion in 1991. All primary and secondary students who attend school receive food stamps of Rs 3 per day if they bring a meal. 5.39 The government provided free cloth for school uniforms in January 1993 to all students in general education (years I to XHI) schools, in private schools where the MOECA pays teachers' salaries, and in religious schools such as the pirivenas, at an estimated cost of Rs 600 million. Since the cloth was imported, it added to the payments deficit as well as to the budget. School Maintenance and Repairs 5.40 Expenditure on school supplies and on repairs and maintenance are extremely low, representing 0.6 percent and 0.2 percent of the total budget. Annual expenditure per student for school 85 supplies (Rs 13) is negligible when compared to other nonsalary expenditure, such as transport and communications (Rs 46) and student welfare programs (Rs 605). The low priority given to school supplies and requisites means that in most schools teaching materials are lacking or in poor condition. 5.41 The almost negligible expenditure on repair and maintenance, which averages Rs 2000 per school, per year has left many school buildings, facilities, furniture, and equipment in inadequate condition, thereby affecting the quality of education. The government recognizes the inadequacy of maintenance expenditure, and the establishment of the school boards was partly promoted by the need to develop a source of local funds for repairs and maintenance. Maintenance is, of course, a provincial responsibility, so central government cannot control directly how much provinces spend on it. 5.42 Given that Sri Lanka has approximately 10,000 schools, and estimating an average of Rs 20,000 per school per year would be reasonable for repairs and maintenance, of which the school boards could provide half, a budgetary allocation for school maintenance of Rs 100 million, or 1 percent of the recurrent education budget, would not be out of line. To the extent that the school boards experiment works, the needs could eventually be somewhat reduced, but the capacity of poor communities to generate resources is not high. The (IDA)-financed General Education Project is financing the upgrading of elementary school buildings and the purchase of furniture. Some of the funds compensate for neglected maintenance. Recurrent Unit Costs 5.43 The MOECA budget classification includes primary and secondary education within the general education category. Mission members tried to disaggregate the recurrent expenditure of general education into the primary level (years I-V) and the secondary level (years VI-XIII) based on the distribution of teachers and students among these two levels. Expenditures related to teachers, such as salaries were distributed according to teacher ratios, and those related to students, such as grants, scholarships, and meals, were distributed according to student ratio (annex 5, table 5-12). 5.44 In 1991, general education (years I-XIII) had the overwhelming majority (98.5 percent) of the 4.2 million total students (annex 5, table 5-13) and 89 percent of total expenditure. Within general education, the number of students in the five years of primary school (2.08 million) was almost equal to the 2.05 million in the eight-year secondary school cycle. However, expenditure on secondary education was 38 percent more than that on primary. University education had 42,700 students (1 percent of total enrollment), and its share in total expenditure was 9 percent. Thus, as in most countries, unit costs increase progressively with the level of education. The unit cost of secondary education is almost double that of primary education, the unit cost of the technical colleges is three times that of secondary education, and the unit cost of university education is three times that of the technical colleges (annex 5, figure 5-6). 5.45 The unit cost differences are partly explained by the different levels of school facilities; the different requirements, laboratories, and teaching materials; and the number and qualifications of teachers, for example, the student/teacher ratio of 21 in secondary education compared to 31 in primary schools. 5.46 Unit costs as a percentage of per capital GDP are generally low compared to other Asian countries. Annex 5, table 5-14 shows that six out of nine representative Asian countries have higher ratios of primary education unit costs to per capital GDP, and eight of the nine have higher secondary 86 unit costs. The unit costs of university education related to per capita GDP in countries such as Bangladesh, China, India, and Nepal are more than double,those in Sri Lanka yet the Philippines and Thailand, both which have large private university systems, spend between a third and a half of the Sri Lankan level. Type of School 5.47 As noted in chapter 2, schools are classified according to type, rather than as primary or secondary. Expenditure information by level of school has not been available since decentralization in 1989. The mission tried (annex 5, table 5-15) to update the 1987 data on expenditure that were published in the ADB-financed study (Ed.CIL 1989), which gave the following estimates for 1991: * At the upper secondary level, the unit cost in type 1AB schools is more than twice the unit cost in type 1C schools with the difference due mostly to the costs of science teaching. , For all levels, unit costs increase progressively with school type, which is also related to school size, except that unit costs for primary classes in primary schools were higher than for primary classes in other types of school. The worst served were the primary students in types 2 and IC schools, which is consistent with the information on performance shown in Chapter 2. In other words, small schools, which represent almost half of Sri Lanka's schools, have smaller resource allocations per student than large schools. * The rural-urban discrepancies in resource allocation and between small and large schools constitute an important equity issue. Many rural and small urban schools are seriously deficient in essential facilities and equipment, such as toilets, drinking water, libraries, and laboratories. Two schools that the mission visited, a type IA national school in Colombo covering years I-XIII and a type 2 rural school covering years I-XI, are examples of extremes. The first school, with excellent buildings and facilities, spends 20 percent of its budget on nonsalary expenditure, such as building repairs, laboratory equipment, and library books; for the other school, salaries take up almost all expenditure, leaving nothing to upgrade its inadequate facilities. Provincial per Capita Income and Resource Allocations 5.48 The mission attempted to examine the relationship between resource allocations nd the economic level of the provinces. Estimates of provincial per capita income (annex 5, table 5-16) show no substantial discrepancies among provinces, although the highest per capita income (Western province) is about 50 percent more than the lowest (North Central province). However, the provinces exhibited wide differences in resource distribution. Generally, the poorer provinces had proportionally more unqualified teachers, greater shortages, and more low-paid teachers and spent less on instructional and teaching materials. Cost Implications of University Expansion 5.49 Annex 5, table 5-17 shows recurrent expenditure for higher education for 1987 to 1992. The expenditures include the MOECA allocations to the institutions through the UGC. Recurrent expenditure has been expanding in parallel to the expansion of the university system: during 1987-92 87 it increased in real terms by 60 percent. The period was not one of steady growth because of the closure of the universities during 1989 and 1990. Indeed, to some extent the level of expenditure in 1991 and 1992 was high because of the additional enrollment needed to catch up after the closure. Resources other than UGC allocations provided 32 percent of university income in 1991. They included student fees to the Open University and for external courses at regular universities, as well as earnings from research and other contracts. 5.50 Unit costs estimates for the regular universities, the Open University, the higher education institutes and the AUCs in 1991 show that as is to be expected, the cost per student for science-based studies (SL Rs 32,700) was more than twice that for students in arts-based courses (SL Rs 14,700). Wide discrepancies exist among the unit costs of the different science studies depending partly on the type of instructional equipment and teaching materials required. The various training institutes, most of which offer undergraduate and postgraduate science programs, have a unit cost of SL Rs 34,860, which is close to the unit cost in university science studies. The Open University has a relatively low (SL Rs 6,070) unit cost to the budget, since it derives significant resources from student fees. 5.51 The mission carried out cost and enrollment projections to assess the implications of the current expansion of the university system using current unit costs. The computer projections covered the period 1991-2000 and include two scenarios, both of which seem reasonable targets for the university authorities to aim at if they can find requisite funding (annex 5, table 18). The first scenario is based on the UGC's plans of slow growth for the regular and open universities (2 percent), rapid growth for the AUCs (35 percent), and no growth for the institutes. The second scenario is based on the same assumptions as the first, but in addition doubling enrollment in the regular universities, science-based programs. Mission members discussed the expansion of the university science disciplines with government representatives. This would be a way of increasing the number of science graduates and of limiting the number of arts graduates in accordance with labor market requirements, demonstrated by the large number of unemployed arts graduates. 5.52 The projections show that the university budget would need to grow by an average of 9.2 percent per year in real terms during 1991-2000 in the first scenario, and by 11.7 percent in the second scenario, compared to the 12 percent annual growth in 1987-92. The university recurrent budget would need to increase from SL Rs 853 million in 1991 to SL Rs 1.9 billion in 2000 under the first scenario and to SL Rs 2.3 billion under the second scenario. 5.53 The projections show that the university expansion policies the government is currently following would lead to substantial cost increases and have considerable implications for the education budget if other means of generating resources cannot be found. As a result of such growth, the share of the university budget in the total education budget would increase from 9 percent in 1991 to 18 percent in 2000 in the first scenario and to 21 percent in the second scenario. 5.54 Measures are needed to address the issues of resource management and the system's cost effectiveness. Such measures might include, for example, improving efficiency and reducing repetition and dropout rates. However unthinkable cost recovery may appear politically, it may be necessary if resources are to be found. 88 General Education Enrollment and Cost Projections 5.55 The mission prepared enrollment and recurrent cost projections for general education using the World Bank Education Simulation Model and data provided by the MOECA for the period 1991- 2000. The projections covered general education in detail at the primary and secondary levels, technical education (technical colleges) in aggregated form, and university education under the two growth scenarios. 5.56 The projections for general education consist of the base run and two scenarios. The base simulation assumes no changes in current policies, the first scenario simulates the cost implication of improving the system's internal efficiency by reducing repetition, and the second scenario simulates the cost implications of increasing student/teacher ratios to those in other Asian countries. Current unit cost estimates are used in the base run and the first scenario. 5.57 Enrollment projections (annex 5, tables 5-19 to 5-21) are based on (a) declining enrollments in year I of primary school following the decrease in the age cohort (indeed, the numbers in year I started to decline in 1989-90 and continued in 1990-91); and (b) 1991 promotion, repetition and dropout rates by year and sex, except where specifically modified, and transition rates between primary and secondary schools. Cost projections (annex 5, tables 5-21 to 5-23) are based on enrollment projections and estimated unit costs for the different types and levels of education. 5.58 The projections show the demographic trend effect on enrollment growth. During 1991- 2000, the total number of students in primary schools would decrease by 1.5 percent per year, and the numbers in secondary school would start to decrease after five years, falling during 1995-2000 by 1.2 percent per year (annex 5, table 5-19 and figure 5-7). 5.59 The declining student population at the primary and secondary levels could ease the pressure for continued growth in the general education budget if unit costs remained constant. Taking into account base projections of growth in technical and university education, the total sector budget would grow by about 1.3 percent per year during 1991-2000 (annex 5, table 5-20). 5.60 .A variant of the base simulation shows the effects on budget growth of expenditure on quality improvements in general education (annex 5, table 5-21). These assumptions are based on doubling the expenditure on quality-related components such as books, teacher training, and school supplies, so that nonsalary costs increase from 5 percent of unit costs in 1992 to 10 percent in 1995 and 15 percent in 2000. The results show that the general education budget would grow by 1.3 percent per year during 1991-2000, and the overall education budget by 3 percent per year. Potential Cost Savings 5.61 The internal efficiency of general education and the supply of teachers are among the potential areas for cost savings, but also represent the greatest risks of cost increases. Two scenarios were examined to assess the level of savings that could be achieved in general education by improving internal efficiency and increasing the relatively generous student/teacher ratio. 5.62 The first scenario shows that halving the current level of repetition in primary and secondary schools would decrease recurrent costs by 3 percent in 1995 and by 5 percent in 2000 (annex 5, table 5- 22). These cost reductions vary among the different levels of education according to repetition rates, 89 from 4 percent in primary schools by 2000 to 20 percent in years XII and XIII, where repetition of the final Advanced Level examination year is extremely high. 5.63 The second scenario is based on maximizing the use of current teaching resources by a gradual increase in the student/teacher ration to a level comparable to other Asian countries: from thirty- one for years XII-XIII. These relatively minor policy reforms would reduce teacher demand substantially (annex 5, table 5-24), and could reduce total costs by 18 percent by 2000 (annex 5, table 5-23). Once more, cost reduction is most significant for years XII and XIII, where more than one-third of expenditure could be cut if teachers were better used and the student/teacher ratio were increased to international levels. Cost Increases 5.64 Current policy trends are to continue recruiting teachers, which would therefore increase the salary component of unit costs. These increases are intended, in theory, to compensate for the difficulty of finding teachers to work in the rural areas, and to teach certain specialized subjects. In practice they appear to be mainly a palliative for unemployment, with no evident educational benefit. In any case, significant savings from the reduced enrollments in general education can only be achieved if the number of teachers is reduced in parallel; a politically difficult feat. 90 CHAPTER 6 SECTOR STRATEGY FOR EDUCATION AND TRAINING A. Primary and Secondary Education 6.1 Recent reform initiatives have been in the right direction to address the primary and secondary education issues discussed in this report. They include continuing to decentralize school management and accountability, gradually consolidating very small schools, upgrading teacher training and support, developing a teacher service, and modernizing the curriculum and examinations. The cumulative impact, however, is lessened because (a) an umbrella sector strategy to provide vision and precise targets is not yet in place; (b) many good plans are formulated at the top, but are not fully implemented at the school level because personnel need guidance and training; and (c) reform seems to happen only when funded through externally-aided projects, leading to piecemeal, stop-go policies that risk failure. What is needed, once a consensus is reached on the issues for the 1990s, is a costed, long- term strategy for the entire primary and secondary subsector, with feasible and measurable educational targets, supported by an affordable expenditure plan, the critical parts of which could be implemented without external support. Such a strategy should be linked to an objective system to assess educational attainment, so that the output of the system can be related to inputs, and so that managers and the public can understand the true status of Sri Lankan education. 6.2 The timing is excellent for the National Education Commission to develop a strategy within which the government can elaborate specific policy measures and a national master action plan. Provincial plans could then follow. If public expenditures on education overall are allowed to grow in real terms at the same rate as the GDP, this would be sufficient to attain significant improvements in the system: so long as teacher recruitment is contained. Recent declines in the birth rate and resulting primary enrollments will soon affect the secondary level, reducing expansionary pressures and giving the chance to release resources. The authorities are already addressing internal inefficiency by consolidating selected school facilities, and have identified other inefficiencies that could be remedied. These actions could provide education with'additional funds for improving quality and equality of opportunity. 6.3 A major difficulty in defining education strategy is the uncertain impact on sector quality, costs, and financing of the current rapid recruitment of teachers. The increased spending on education due to this recruitment will make it more difficult to achieve the economies feasible from the fall in the birth rate, and so more difficult to find the money needed to increase recurrent spending on quality of education. Proposed Targets 6.4 The crucial issue affecting the cost and quality of education is the scope and pace of growth in school participation at different levels for which the sector should plan. The mission suggests that the National Education Commission analyze which targets might be attainable, taking account of the budgetary resources available. Following this review, the authorities could launch a national strategy for primary and secondary education based on appropriate targets. 91 6.5 The authorities could explore the implications of a number of targets for increased efficiency in the use of resources. Key variables include the proportion of the age group who would sit the Ordinary Level (O/L) examination, a possible cutoff level of O/L and Advanced Level (A/L) marks that would determine whether students could repeat the'year, the proportion of those passing O/L who go on to year XII, and the proportion of those passing A/L who go on to university-level education. These variables have a substantial impact on the numbers in upper secondary and university-level education. For example, an increase in the proportion of those with O/L who enter year XII from one in five to one in three would lead to an approximate doubling of the numbers entering year XII, and so potentially to a doubling in candidates for higher education. 6.6 The mission suggested the following points as elements for a strategy for primary and secondary education: (a) All pupils should have the opportunity to receive an enhanced quality of secondary education up to O/L in a broad, general curriculum, with the assumption that by 2000 a substantial proportion of the age group would sit O/L. What should that proportion be? (b) Dropout rates should be reduced to a negligible level through year VIII and to half the present level in years IX-XI by improving the education provided, and by other policy measures to be developed to keep children in school, working with communities and non- government organizations as appropriate. (c) Efforts should continue to bring all children into elementary education in those pockets where some remain outside school. (d) Repetition in years I-X should be reduced to less than 5 percent, thereby freeing some capacity to absorb the increased proportion who continue (see [b] above). (e) O/L repetition should be reduced from 35 percent (40 percent for girls) to around 20 percent by 1996 and 15 percent by 2000, thereby making more efficient use of existing capacity and allowing increased net participation with the same capacity. (f) Progression from year XI to years XII-XIII should be gradually increased from one in five O/L qualifiers to levels to be determined. This progression is a key element in deciding strategy, since the numbers entering year XII have a major influence on the numbers eventually going on to university. (g) A/L repetition should be reduced from 37 percent to 20 percent by 1996 and to 15 percent by 2000. (h) Access to higher education should be gradually increased from one in ten A/L qualifiers to levels to be determined. (i) Recruitment into the teaching profession should be frozen to contain the growth in recurrent costs, while the structure of the profession is reviewed to decide on the areas where any future recruitment will be necessary. 92 6.7 The benefits of reaching appropriate targets would be improved pupil retention and progression, improved learning outcomes in terms of curriculum objectives reflected in pupil assessments and examinations, raised pass rates at O/L and A/L, and increased numbers of better prepared entrants to postsecondary education and training and the labor market. 6.8 When the authorities have agreed on targets for increased progression, they need to work out policies to attain them, and calculate the cost implications for both central and provincial expenditures. What follows is a brief outline of proposed priority areas for policy development. Policies to Enhance Quality 6.9 There are no blueprints for ensuring success in educational quality improvement. The central point is that coordinated action would be needed in four main areas: (a) in curriculum development so that teaching-learning processes develop continuously; (b) in teacher training and support; (c) in text and materials development to ensure that the intended curriculum is taught in classrooms; and (d) in examinations to align test items with curricula so that they measure the knowledge, skills, and values that the official curriculum intends to impart and that the economy and society need. These measures would work best if preceded or accompanied by a campaign of public education and dialogue. This process of consensus building would lead to variations between the provinces on the details of policy to accommodate different local needs. The ongoing school principals' training program could include discussion of the strategy and the crucial role of principals for its successful implementation. 6.10 One possible agenda, based on global experience, Sri Lanka's unique needs, and policies the government has already adopted is set out below: (a) Continue to review curricular objectives, content, and materials for their appropriateness to realistic levels of pupils' knowledge, skills, and values and to local relevance. Revise them to meet contemporary needs, paying particular attention to lower secondary and secondary core subjects (language, mathematics, science, social studies, and English) and the continuity between educational levels. (b) Shape curricula and examinations for primary and secondary education, and especially in years I through XI, to stress learning adapted to the majority who will not go on to university education, and to everyday life rather than to academic information. (c) Conduct a fresh review of the subject options offered at the secondary level and streamline them according to enrollments, specialist teachers, local relevance, and affordability. (d) Review and possibly lengthen the school year and/or school day and put in place strengthened programs for enrichment and remedial classes after school hours. (e) Make a major effort to improve the teaching of English at all levels, particularly for children from disadvantaged areas. (f) Set a date for when English language will be a compulsory subject for entry to A/L and accelerate English teacher training. 93 (g) Conduct a new district-level training needs assessment of local teachers and the level and subjects for which they are best suited to teach. (h) Strengthen the capacity to implement curricula through in-service teacher development, workshops, and locally-developed curriculum guidelines and materials. (i) Establish assessment standards for meeting curriculum objectives and strengthen the capacity to assess and disseminate curricular outcomes to give feedback to teachers for better curriculum implementation. This would be an integral part of curriculum development. (j) Decide, for each curriculum area and subject, whether teachers should be trained to teach at both the primary and lower secondary levels, or whether teachers for lower secondary should have training similar to those for secondary. This would be done based on the amount of continuity from level to level using the revised curriculum. (k) Strengthen the life skills curriculum and careers counseling system beginning in year IV or V, so that pupils understand earlier that they are responsible for their life choices and can make informed decisions about why and what they will study. (1) Review all aspects of book policy (quality, availability, management capacity, governmental and nongovernmental provision, affordability, and educational and production quality of books) as a basis for a master plan for upgrading service delivery. (m) Strengthen the institutional framework for decisions about provision of books and information services and for the management of book provision, including developing an appropriate level of autonomy for the Education Publications Department. (n) Conduct a needs assessment of gaps in supplementary reading, reference, and library materials in English, Sinhala, and Tamil for pupils, teachers, and teacher training participants and plan a program to develop local capacity to write and publish them. (o) Conduct a similar assessment and plan a program for simple science and technical subject kits. (p) Develop guidelines on minimum resource requirements for other teaching-learning aids and consumable supplies (pencils, visual display paper, paints, and so on), conduct regular reviews of schools' capacities to provide this minimum. (q) Have provincial authorities earmark budgets for classroom materials, possibly based on a class size formula and average family income per pupil per school, as well as on the central guidelines on minimum resource requirements. Teachers 6.11 Given the current uncertainties regarding needs for teachers, all recruitment of teachers needs to be frozen until the situation is better known and appropriate policies are developed. Policies for employing, deploying, and motivating teachers and upgrading the quality of their work might include the following areas: 94 (a) In setting up a teachers' service (which will give teachers better pay and conditions of service), the authorities should take advantage of the opportunity to review all aspects of the conditions of teachers' employment, for example introducing measures to make it easier to ensure that teachers work where they are needed, and to reduce absenteeism by removing teachers' right to take leave without notice during term time. (b) Develop promotion opportunities, a career structure, and incentives for teachers that motivate them to upgrade their knowledge and skills in shortage subjects, undertake further study to qualify in an additional (shortage) subject, and serve in disadvantaged schools for a fixed term. This should be a high priority. (c) Conduct a census of the teaching force to identify where people with different qualifications are currently working, and match this allocation with needs so as to identify surplus teachers; implement appropriate recommendations of the study on teacher absenteeism prepared by NIE in 1993. (d) Review and revise the current cadre formulas for calculating teacher requirements, adjusting the assumed 2 percent teacher attrition rate formula. Base this review inter alia on analysis of the causes and effects of imbalances in the gender ratio of the teaching force, and factors such as changes and revisions in the curriculum, as well as the desirability of higher pupil- teacher ratios and teacher-class ratios (especially for A/L and noncore subject areas in schools that do not have a critical mass of pupils in these classes). (e) Develop a plan to recruit teachers only in disciplines and geographical areas where there are shortages, at a rate of, for example, one recruitment for every two leaving the teaching force. (f) Establish a program where surplus teachers would be given a choice of being redeployed to areas of need, retrained if they have the basic qualifications to disciplines where teachers are in short supply, transferring to other public service posts where there are shortages, or being declared redundant under existing legislation. (g) Develop incentives for underqualified and underutilized teachers to be upgraded to meet needs, to retire early, or to teach part-time. (h) So that teacher needs can be met with better qualified people who may not be prepared to commit themselves to a full teaching career, develop fixed-term contract-teacher schemes, with incentives such as credits for further study or work experience, and short, intensive training programs for well-qualified A/L and university graduates. (i) Consider developing from the existing teaching force a larger pool of experienced, qualified, part-time, peripatetic teachers who could cover for teacher vacancies and extended absences; reconsider the practice of using trainee teachers to substitute long term in a teaching position, and provide additional professional support and mentoring to inexperienced teachers to maintain their motivation, morale, and productivity. 95 (j) Review the qualifications and experience of acting principals, identify teachers qualified for upgrading by merit, and appoint principals within a fixed period to be decided, such as two years. (k) Ensure that teachers in multilevel schools teach at the level for which they are qualified, and, in particular, ensure the lower years are not deprived of good teachers by teachers "moving up" with the age cohort. (1) Institutionalize a high-level, independent coordinating agency to recommend long-term teacher training strategies and priorities, and to assess teacher training institution capacity. This agency would define a teacher training action plan, including rationalization and development of teacher training institutions, taking into account the factors in this section of the recommendations. It would conduct a national drive to train high-quality teachers as a major priority, and to upgrade the quality of teacher training. (in) Since in-service training will be needed for many years to come, analyze the optimal length of courses, given the numbers and qualifications of those who need training, the costs of training, the reduced marginal benefit from training after the initial months, and the limited capacity of the training system. (n) Consider whether to establish minimum criteria that teacher training institutions must meet, such as enrollments, catchment area served, trainers' qualifications and teaching experience, facilities and links with schools; and whether to set up an independent accrediting/supervisory agency for teacher training institutions and/or particular courses. (o) Develop a profile of the training needs of teacher trainers in light of the revised curricula and develop a plan to provide professional development, including study programs in other countries and internships in schools. (p) Develop a long-term plan for pre-service and in-service training so that A/L in the relevant subjects may become the minimum qualification for entry to primary- and secondary-level teacher training with graduate status in relevant subjects for would-be A/L teachers. (q) Review and revise all other teacher training curricula to meet the current and future needs of participants and align them with the revised school curricula. (r) Phase out the sharp distinction between pre-service and in-service initial training and, instead, develop the current policy of various delivery modes for initial training, according to needs. The modes would combine campus-based training, supervised internship in schools, and self-study within, say, a five-year period from probationary recruitment. Examination Policy 6.12 The nature of examinations and the way they are conducted have a major influence on the education system. The mission made the following recommendations: 96 (a) Establish a national education testing service, thereby removing responsibilities for testing and examinations from the Examinations Department other than those linked directly to the school system. (b) Complete the appraisal of the year V Bursary and Placement Examination. (c) Link the content of all examinations more closely to the type of knowledge needed in daily life and employment. (d) Continue to modify the O/L and A/L test items to align them with curriculum objectives and content, to strengthen curriculum coverage, and to test item validity. (e) Continue to upgrade the technical quality of the examinations through research and development and training of item writers and markers. (f) Develop more user-friendly teachers' guides for examination coaching based on the revised curriculum, and train teachers in their use. Access to Quality Education 6.13 There are wide disparities in access to good education. The education policy-making and planning agencies should consider adopting the following strategy: (a) Carry out a new school mapping exercise based on projections of school-age population. Analyze the viability of schools according to the following factors: * The appropriate physical and teaching resources needed to offer, for primary schools, the minimum range of curriculum areas, and for secondary, the minimum number of subjects; * The enrollments required to meet reasonable standards for efficient use of space and teachers; * The availability of other viable schools nearby, including centers of excellence; * The potential for community support; * The willingness of local governments to provide supplementary recurrent educational funding/to schools in disadvantaged communities. * Continue school location planning to identify school facilities that should be enhanced and to phase out or consolidate those that are too small to be viable, at least at the secondary level. (b) Conduct follow-up research to investigate critical factors in school type, size, and organization that affect pupil achievement at the primary and secondary levels, with particular attention to types 2 and IC schools. Consider abolishing type IC schools by 97 providing all such schools that have adequate enrollment with science education and other facilities. (c) Direct the supply of books and learning materials first toward disadvantaged communities in every district. Apply the proposed new guidelines on minimum resource requirements for consumable teaching-learning inputs and provide supplementary funding for the poorest schools, defined according to criteria that include family incomes and school dropout rates. (d) Review the feasibility of developing a distance education enrichment program for remote and disadvantaged schools. It should be simple (print and radio), user-friendly and low- cost. Possibly use centers of excellence and other good schools during the school holidays for face-to-face study visits by pupils and professional support to teachers. Implement pilot schemes. (e) Gear teachers' new promotion and career structure and the incentives proposed above to encourage well-qualified teachers (including married couples together) to serve for fixed terms in disadvantaged schools. (f) Provide principals and teachers with opportunities and incentives for additional study and training. (g) Give priority to teacher enrichment programs in disadvantaged schools. (h) Provide accommodation and transport for teachers in disadvantaged communities. (i) Provide supplementary master teachers and supervisors and ensure they have adequate transport or transportation and subsistence allowances. (j) Ensure that the appraisal of the year V examination results in opening up places and bursaries to good secondary schools for the most disadvantaged but able pupils. (k) Target teachers and pupils in disadvantaged communities with supplementary coaching materials for curriculum-based examinations and tests and train teachers how to use them. (1) Strengthen English language teaching, especially at the secondary level. (m) Consider whether additional bursaries to encourage retention through O/L could be made available throughout lower secondary schools for late-developing but talented pupils from disadvantaged families who have not won a scholarship. This could be done through school-based continuous assessment rather than as an additional national examination. (n) Similarly consider bursaries for top O/L qualifiers from disadvantaged families who have not previously won a scholarship to be supported through A/L. 6.14 Attainment of targets could be ascertained through low-cost, sample-based, periodic national assessments of student progress in core subjects and/or in comparisons with other countries. 98 B. Private Education 6.15 The legislation governing private schools could usefully be updated to place all institutions on a comparable basis. Dropping the prohibition on opening nongovernment schools whose development and operating costs would not be a charge on the state and that meet minimal educational and health conditions might be desirable to maximize the contribution to education financing from parents and others. 6.16 The role of tutories needs to be examined, perhaps by the National Education Commission, to seek ways to discourage their expansion and to divert the resources now spent on them to the public school system. C. Higher Education 6.17 Higher education faces serious choices. It has low coverage (less than 3 percent of the age group) and is expanding fast. Will it continue in its present, supply-driven form, producing the same or even higher numbers of graduates who have few scientific or technological skills and who cannot speak an international language, so that they add to the mass of unemployed seeking make-work government jobs? Or will it change to a demand-driven system, emphasizing education which produces graduates and diplomates with the knowledge, trainability and communication skills wanted now or in the future by employers in Sri Lanka and overseas? How will the expanded system be paid for? If it follows its present growth it would take 20 percent of sector spending by 2000 instead of the present, reasonable, 9 percent - the public purse cannot afford to pay for such an expansion, so other sources will have to be found, including more contributions from those who benefit. Expansion of the private sector would be one means of responding to demand. 6.18 Higher education and research must become more efficient to make the best use of limited resources. The sectors must also become effective in meeting the real needs of society and the economy, which are changing rapidly and radically. Efficiency requires improved policy-making and management; effectiveness and responsiveness can only be achieved through delegated responsibility and accountability at all levels, guided by appropriate planning and funding mechanisms. A successful strategy for reform and improvement could be based on action in five main areas. 6.19 The first three actions concern the development of institutions for policy, for managing the system, and for delivery of education. (a) Establish a national planning and policy framework for the whole range of research and higher education activities in the form of an institution that would set long-term policy, priorities, and targets and would ensure that sector regulation is appropriate. (b) Put in place an operational framework: an agency to convert national policy into institutional plans, including objectives and priorities aimed at reform and improvement, and open and consistent methods of monitoring, measuring performance, and ensuring quality. (c) Make the universities and other higher education institutions autonomous and free to respond to market signals within the national framework of priorities. They need to be responsible and accountable for their efficiency and performance according to established 99 criteria. They would have to have the financial and academic freedom to manage their own affairs and be required to cooperate closely with industry and commerce. The other main actions concern funding: (d) Try to attract nongovernment funding by initiating selective cost recovery, establishing new private institutions, and encouraging state institutions to attract and retain private funding. (e) Attract investments to provide staff development for teaching, technical, and managerial staff; modern laboratory and teaching equipment; library books and facilities; support for industrial collaboration; and support for applied research. Options for Attaining Objectives 6.20 To ensure the proper coordination of all higher education and research activities, the overall policy-making body will require sponsorship at the highest level of government. In addition to a clear statement of commitment and intent, it must also have sufficient support, status, and credibility to ensure cooperation at the ministerial level and from the staff within the system. Its terms of reference should emphasize its policy-making and oversight role and specify to whom and how it will report. The membership would probably include representatives from government, education, research, industry, and commerce, with majority representation from the demand side. The group need not be large, nor need it meet very often. It should be able to set up working parties on specific topics and should be serviced by a high-quality, full-time secretariat. Two possible options for this crucial, top-level policy-making body are that it be a standing committee chaired by the prime minister or an interministerial committee. In either event, the chair of the University Grants Commission (UGC) should be a member of the body. Either the UGC or the Ministry of Higher Education (MOHE) could provide the secretariat. 6.21 To implement policy and to coordinate the autonomous teaching and research institutions, both research and higher education need an operational agency. It should work by assisting and encouraging the institutions and their staff to respond effectively and efficiently to stated needs. Such a body would have three main tasks: (a) It would be the main mechanism for allocating of government funds to the system, and so transform overall sector policy into action by the teaching and research institutions. It would draw up action plans that specify priorities and targets on access, growth, efficiency, and quality, while safeguarding the institutions' autonomy and responsiveness. (b) It would devise criteria and indicators that would serve both to evaluate the institutions' performance and to use as a basis for allocating their government funding. An important objective will be to introduce performance-based funding and, in the long term, to identify inefficient and nonproductive units so that resources can be redistributed to the best performers. (c) It would develop a valid and comparable database on institutional performance. 6.22 The present method of budgeting higher education and research reflects the system's dispersed and compartmentalized structure. Any attempt at rationalization, redistribution, and increased efficiency should therefore encompass the entire subsector, including the universities, the affiliated 100 university colleges (AUCs), and all the ministry-funded centers. In setting up an appropriate structure a choice needs to be made between having separate groups for research and for higher education, or a single group to deal with both areas. Separate groups would cater for the different priorities of their respective areas, but would have less opportunity to achieve overall collaboration and improvement. 6.23 Strategy analysis would also have to address the role of the UGC in the new operational framework. One option might be to revise the UGC's membership to give employees more representation; to expand its mandate to .cover research; and to develop the necessary criteria and indicators for both areas. 6.24 Some jurisdiction over priorities could remain with the different ministries, but overall coordination with standard methods of performance-based funding and quality assurance must be introduced. Autonomous Research and Education Establishments 6.25 Autonomous research and education establishments should be managed by boards of directors who are legally responsible and accountable for the establishments' financial, managerial, and academic well-being. Board members would be representatives of local industry, commerce, and other employers of the institution's output. Their terms of reference would reflect their prime mission of serving society rather than vested interests concerned with inhibiting change. Through the national infrastructure, the boards would be responsible for producing corporate plans and meeting specified objectives and targets, and would be required to demonstrate acceptable management practices, student facilities and welfare, and quality control mechanisms. 6.26 Within the autonomous institutions, responsibility and accountability would rest with subject- and institution-based executive groups. The formal, transparent procedures for policy-making, performance-based resource allocation, and quality control developed at the national level, would be replicated internally. Within the framework of national priorities and policy the institutions, through their governing bodies, would be free to attract and retain external funding. Financing 6.27 Increased cost recovery would be a valuable means of providing needed resources for the enlarged system. The most significant possible method of cost recovery is to charge tuition fees which could be explored. This sensitive political issue needs to be considered seriously by all concerned, not only because of the lack of alternatives, but also because it affords more equitable, simpler ways of improving access and protecting disadvantaged groups. Drawing a significant part of their income from student fees rather than direct state grants would be a major step for the universities and AUCs. This, coupled with greater institutional independence, would increase student growth; encourage efficiency, initiative, and growth; and automatically reward good performance. It would also allow institutions to introduce structured fee and support grant systems for special student groups and to reflect national priorities. Private investment in institutions of higher education is another option that should be encouraged. These issues merit national discussion to ensure that any changes made are accepted by those involved. 6.28 Considerable funding is required to improve the size and quality of the higher education subsector and the quality of research. The main need is for staff development in four main areas: (i) 101 subject areas, including updating and in new high technology; (ii) management and administration, particularly in the governance of the sector and institutional strengthening; (iii) pedagogy; and (iv) use, maintenance, and repair of equipment (mainly at the technician level). 6.29 Funds are also necessary for major upgrading of central facilities, libraries, and computer centers. While International Development Association (IDA) or other donor funding for developing higher education might be a possibility, it should only be made available after mechanisms are in place to ensure the proper use and distribution of funds. This is necessary not only to avoid duplication and waste, but also to give incentive and direction to a more coherent and coordinated provision of facilities. Conclusion 6.30 The evolution and provision of higher education has to date been led by supply pressures and student demand. Apart from a few notable exceptions, the subsector has taken little account of the skills and knowledge needed by the economy: the main thrust of student programs remains firmly rooted in traditional nonvocational courses. The main conclusion of this study is that a sensible reconciliation of the gap between qualified demand for places and the supply of appropriate employment opportunities can only be initiated by resolute commitment of political leaders; strategic policy decisions; an overall operational framework; and a realistic, coherent, sustainable phased program of implementation. D. Technical and Vocational Education and Training 6.31 For the technical and vocation education and training (TVET) system to be responsive to the economy's manpower needs both now and in the future, substantial reform is necessary, with the following objectives: (a) Developing a national TVET subsector policy in line with national development policy and focused on employment needs. (b) Implementing fully the Tertiary and Vocational Education Commission's (TVEC's) role as the apex authority, with both the private sector and the government represented, and with overall responsibility for implementing the national training policy. (c) Establishing strong and effective links between employment and technical education and training. (d) Setting up an appropriate mechanism for financing training in accordance with national policy while ensuring that training is driven by demand from employers to meet skills upgrading and employment needs, training outcomes in terms of employment and performance are strictly monitored, training is provided cost effectively and resources are fully and efficiently used, and the quality and relevance of training are substantially improved. (e) Increasing the resources devoted to training provided by enterprises to meet their training needs, particularly skills upgrading, accompanied by improved efficiency in the use of government resources for education and training. 102 (f) Expanding and upgrading training provided by enterprises and strengthening training resources and facilities in industry to upgrade management capabilities, enhance technological development to support industrialization objectives, and improve the work force's skills and productivity. (g) Increasing the autonomy of the public training institutions and the delegation of responsibility to those institutions with satisfactory arrangements for industry, the private sector, and the local community to participate effectively in their management. Criteria should be established for allocating resources and monitoring outcomes to ensure the institutions' accountability. Institutions' management capabilities will need to be considerably improved and appropriate management systems developed. (h) Establishing and using recognized standards of training and qualifications. The process of setting standards and developing tests should be guided by industry since it is the main user of standards for employment, promotion, wage setting, and so on. (i) Improve the collection, analysis, and use of labor market information. 6.32 To reform the system the mission recommends the following actions: (a) Develop the TVEC as the apex body responsible for determining and implementing national policy for technical education and vocational training. The TVEC should be reconstituted so that it is independent of any operational line ministry, and with its membership fully representative of private sector employers. It should be provided with adequate resources, including professional qualified and experienced staff. Its powers need to be strengthened: it would become responsible for advising the Treasury on the resources to be devoted to TVET and for determining the broad annual allocations of public funds to the training system, including the criteria to be adopted in that allocation. (b) Set up, probably as part of the TVEC, an effective system for analyzing, disseminating, and using labor market and training information. (c) Establish a human resource (skills) development fund that would ultimately become the main funding body for all technical education and training, including skills upgrading and retraining for priority occupations and for pre-employment training in accordance with priority employment needs. The fund should be independent of any line ministry and should be managed by a board with strong private sector/industrial representation. The fund should initially receive its income principally from government grants that would incorporate part of the existing budgetary allocations for training, and subsequently also receive contributions from the private sector. (d) Increase progressively the autonomy of training institutions and programs under the guidelines and policies established by the TVEC. (e) Prepare through the TVEC a plan for technical education and vocational training that would incorporate the following: 103 * Rationalization of the training system covering the structure of training; reorganization, including amalgamation or elimination of institutions to allow autonomy to be given progressively to those institutions that meet agreed criteria and to obtain maximum efficiency in the use of resources; and determination of resource needs, particularly for staff and staff development, and estimates of costs and financing sources. * Appropriate procedures and systems for preparing annual plans for enrollment, courses, outcome, and resource allocations, with long-term (at least three-year) rolling plans. * An effective mechanism for monitoring performance, particularly employment outcomes and benefits from upgrading skills. (f) Help the National Apprentice and Industrial Training Authority improve the efficiency, quality, and relevance of apprenticeship training, and the legislation and regulations relating to apprenticeship. (g) Establish a system for upgrading and expanding training provided by enterprises, including providing assistance to industry to identify training needs and to plan and implement training. (h) Encourage the expansion and upgrading of private technical education and vocational training. 6.33 The reform needs to be self-sustaining, financed in the medium term from the existing government allocation for technical education and vocational training and increased funding from the private sector. Improvements in quality and expansion would also be partially financed by savings in costs through rationalization and more efficient use of resources. The reforms would need to be implemented in stages, and would necessitate investments for institutional development, for establishing new systems, for upgrading some facilities, and for training staff. 6.34 To reform the system the government has requested IDA assistance. The TVEC is coordinating the preparation of a project with finance from a project preparation facility advance. An IDA credit might provide assistance for the following: (a) Developing the TVEC as the apex body by providing consultant services to set up systems, train staff, and improve physical facilities. (b) Establish the fund mentioned earlier by providing finance for training subprojects or training contracts for training that satisfies agreed criteria, consultant services to establish the management and technical support structure and to develop systems and criteria for collecting funds and allocating grants for training, staff training, physical facilities, and a contribution to initial operating expenditure. (c) Upgrading and expanding enterprise staff training by providing technical assistance to the trade federations, industrial associations, and chambers of commerce. The objective would be to help industry, on a sector basis, to identify priority constraints to improving productivity, including training needs, to improve training facilities and capabilities, to train trainers, and to implement priority training programs. 104 (d) Establishing a high-quality, efficient training system that is demand-driven by employment needs and whose out6omes are closely monitored. This will require upgrading facilities, training programs, and institutions' management capacity and staff training. (e) Helping the TVEC to establish an effective system of quality-based accreditation of public and private training institutions. (f) Improving the labor market information system and examining the effects of current labor legislation. 105 Bibliography and References ADB (Asian Development Bank). 1989. Education and Training in Sri Lanka. Manilla, Philippines. (Four volume sector study by Education Consultants India Limited) Alailima, P.J. 1991. "Education and Employment Linkages: The Macro Profile." Colombo: Department of National Planning. Amerasinghe, F. 1992. "Sri Lanka Country Paper". Paper presented at the International Labour Organization/Japan Workshop for Asia-Pacific Employers' Organizations in Sound Labor Relations Practices, Singapore, March 2-6. Baker, Victoria J. 1988. "The Blackboard in the Jungle: Formal Education in Disadvantaged Rural Areas: A Sri Lankan Case, Eburon Delft. Bowen, A. 1990. The Unemployed in Sri Lanka. Washington D.C: World Bank. Central Bank. Annual.Review of the Economy/Annual Report. Colombo. Cummings, W., Gunawardena, G.B. and Williams, James H. 1992. Implementation of Management Reforms: The Case of Sri Lanka Department of National Planning. 1992. Public Investment Programme, 1992. Colombo. De Soto, H. 1989. The Other Path. New York: Harper and Row. Dickens and Lang, IBRD, 1989. Analysis of the Nature of Unemployment in SL. Ekanayake, S.B. and Sedere, Mohottige, U. Disparity in Achievement: a Case Study of Sri Lanka, Research Division, National Institute of Education, Maharagama, 1989. Ernst and Whinney 1989. General Education Project, Management Component: Report in 12 volumes. Fallon, P.R., and R.E.B. Lucas. 1991. "The Impact of Changes in Job Security Regulations in India and Zimbabwe." The World Bank Economic Review 5(3):395-413. Gamage, Cyril, Beneragama, D.R.T. and Tillekaratne, G.K.A. Study of Organization and Cadre of the Department of Educational Publications, nd. 1990 Gunatilleke, G. Children in Sri Lanka, 1987. Marga Institute for UNICEF Gunawardena, G.B. 1987. Review of Research on Determinants of Effective School - Sri Lanka. Colombo, Sri Lanka: National Institute of Education. Human Resources Development Council, Study of Education-Employment Linkages: School Education with Emphasis on Secondary Grades, Segment 3, World Bank/IDA funded General Education Project 106 Jayanntha, D. 1992. Public Expenditure Review Paper. Kariyawasam, T. National Assessment of Education Progress in Language and Mathematics, nd. National Institute of Education, Maharagama. Kelegama, S. 1990. "Open Economic Policy and Its Impact on Domestic Industrialization in Sri Lanka" Upanathi (The Journal of the Sri Lanka Association of Economists) 5(1, 2):95-147. Kelly, T. 1992. A Strategy for Skills Development and Employment Policy in Sri Lanka Employment Series 11. Colombo: The Institute of Policy Studies. Kelly, T., and C. Culler. 1990. Skills Development Policy in Sri Lanka. Washington D.C: Creative Associates International. Kodituwakku, Godwin and (Mrs) Abeyratne, L.A. A Descriptive Profile of Teachers in Sri Lanka, Research Division, NIE, Maharagama, 1990. Kreuger, A.O. 1974. "The Political Economy of the Rent-Seeking Society," The American Economic Review LXIV:291-303. Kularatna, K.H., Dharmadasa, K.H. and Dharmawardena, H.M.K.C. "Wastage in Primary Education in Sri Lanka", Sri Lankan Journal of Educational Research, Vol. 1, No. 2, 1990. Marga Institute. 1992. Study of Education-Employment Linkages: Strategies for Linking Education and Training to the Labor Market: Findings and Recommendations. Funded by the World Bank/IDA General Education Project, executing agency Human Resources Development Council, Colombo. 9 volumes":- (i) Strategies for Linking Education and Training to the Labour market, Findings and Recommendations; (ii)Labor Force - Current Situation and Future Prospects; (iii) School Education with Emphasis on Secondary Grades. Includes analysis of employers' perceptions of what they look for in recruiting staff, of school management and related issues including experience with clusters and continuous assessment, experience with technical training and work-oriented elements in general education schools; (iv) Resource Allocation for Education. A sector cost and financing analysis; (v) Education: Private Sector Assessment; (vi) Training by Professional Organizations; (vii) Survey of School-Leavers (carried out in 1991 of 1500 people who left school in 1985 with grade 8 up to A level, showing socio- economic status, perceptions and attitudes of school leavers to school to job sought, activities since school, training sought etc); (viii) Technical and Vocational Training (ix) Tertiary Education Ministry of Policy Planning and Implementation. 1992. Public Investment 1992-96. Colombo, Sri Lanka. NIE (National Institute of Education). 1989. A Descriptive Profile of Schools in Sri Lanka. Colombo, Sri Lanka. Nielsen, H. Dean and Tatto, Maria Theresa with Djalil, Aria and Kularatne, N. The Cost-Effectiveness of Distance Education for Teacher Training, BRIDGES/NIE, 1990 107 Rodrigo, C. 1988. Employment, Wages and Income Distribution in Sri Lanka. Asian Employment Programme Working Papers. New Delhi: ARTEP/International Labour Organization. Rodrigo, C., and S. Deraniyagala. 1990. Employment and Occupational Diversification of Women Sri Lanka Case Study. New Delhi: ARTEP/International Labour Organization. Rouse, Cecilia Elena, 1990. A Study of the Poor in Sri Lanka Salagado, M.R.P. 1989. Report on Fiscal Aspects of the Public Sector Restructuring Project. Somaratne, G.P.V. et al. Tertiary Education, Marga Institute, Colombo, 1991 Tatto, Nielsen, Cummings, Kularatna, Dharmadasa 1991. Comparing the Effects and Costs of Different Approaches for Educating Primary School Teachers: the case of Sri Lanka, Harvard, BRIDGES Wijesundera, Subhashinie. 1991. Basic Statistics Relevant to Education. Magaragama: National Institute of Education, Department of Educational Management Development. University of Cambridge Local Examination Syndicate, 1990. Educational Assessment in Sri Lanka: A Report on the Education and Examination Systems in SL World Bank. 1989a. Educational Development in Asia: A Comparative Study Focusing of Cost and Financing. International Discussion Paper. Washington, D.C. . 1989b. "Staff Appraisal Report: General Education Project," vol. II. Washington, D.C. . 1992. Sri Lanka: Strengthened Adjustment for Growth and Poverty Reduction. Report No. 10079-CE. Washington D.C. 108 ANNEX 1 BACKGROUND A. Sri Lankan Labor Markets Terence Kelly Muinstry of Policy Planning Consultant The Policy Environment I. Sn Lankan labor markets have been moribund, with only intermittent respite, for the last two decades. This is shown by the rates of growth of output, employment, productivity, wages, and other indicators of labor slack.' Reasons for this poor performance are both macro- and microeconomc. Macroeconomic factors include slow growth in aggregate demand due to resource constraints on investments, adverse changes in the terms of trade, the crowding out of pnvate investment by public sector deficits until the mid-1980s, and penodic civil or ethnic unrest.2 Microeconomic factors include impediments to labor market efficiency stemming from imperfect product and factor markets, public sector interventions to correct those market imperfections, lack of information, and other constraints on labor flexibility. 2. This lengthy labor market malaise has a number of unportant consequences, the most sigmficant of which, from a labor market perspective, is the need to improve productivity and worker performance to accommodate higher technology, investment, and accelerated growth. Sn Lankan labor is relatively educated, but not particularly skilled. Workers have neither been exposed to the latest technology nor to the demanding standards of international competition. Panty with competitors will necessitate additional policy reforms and the working out of lags in market reactions to those reforms. The country is not quite perfectly poised, from the perspective of labor market operations, to make the transition from slow to faster econouc growth, even though the government has announced its intention to pursue an outwardly-oriented, rapid growth strategy. "The economic growth target for the penod 1992-1996 has been set at an average of 6 percent per annum... However, if per capita income is to be doubled in real terms, and unemployment is to be reduced to a socially acceptable level of about 5 percent by the end of this decade, a higher rate of growth of about 9 percent per annum will be necessary. A growth rate of this magnitude requires not only a much higher level of investment than the average 25 percent of GDP planned under the present programme, but also a marked improvement in overall efficiency in the use of investible resources" (Department of National Plannmg 1992, pp. 1, 2). Specifically, these targets imply an increase in investment as a percentage of GDP from 24 percent in 1990 to 30 percent by the year 2000, a 4.1 percent nse in the annual rate of growth of output per worker, and a 15.0 percent increase in the marginal efficiency of investment over the decade (Kelly 1992). 3. Sn Lanka's development strategy contains both growth and equity objectives. One way to pursue these objectives simultaneously is through policy reforms that will permit wages to nse while inducing reductions in unit labor costs through increases in productivity and worker performance. This implies reforms to the wage determination process, industrial relations, and labor codes and improvements in market signals and responses to permat the monitorng and adjustment of those reforms. Recent Trends in Labor Market Indicators 4. Table 1-1 presents data relating to a vanety of labor market indicators for the years 1980/81, 1985/86, and 1990? No consistent labor force or employment data are available for intervening years. To permit comparisons between the labor force and national accounts data, the latter, including the GDP deflator, were averaged over the reference years 1980/81 and 1985/86. There was a significant (12 percent) increase in the labor force during the 1980s due to demographic factors (the arnval at age of labor force participation of relatively large numbers from earlier birth cohorts) and to increasing participation rates (which also partly reflect these demographic developments). "Between 1980/81-1990, there was a remarkable increase in female participation rates by nearly one half, with rates almost doubling in the age group 20-34 and all age groups registenng significant increases. Consequently, the female labour force grew faster (5.4% per annum) than the male labour force (0.8% per annum)" (Alailima 1991, p. 14).4 Although the rate of labor force growth was slightly higher in the first half of the decade than in the 1. Labor slack is defined as the difference between actual and potential labor utilization. In addition to unemployment, labor slack reflects shortfalls in participation rates, hours of work, wages, and productivity, any of which may be affected by reductions in the demand for labor. 2. "In the five year period 1987-1991, economic growth averaged 3.5 percent per annum" (Department of National Planning 1992, p. 1). 3. Unless noted otherwise, the 1990 data are averages of four quarters. The first quarter covers the entire island, while the remaining three exclude the Northern and Eastern provinces. 4. Data for 1990 refer to the first quarter of the year, in contrast to the annual averages referenced elsewhere in the text. 109 second (6.7 percent versus 4.5 percent), the latter, spurred by large increases in participation rates, occurred when the rate of economic growth was decelerating, particularly during the JVP years 1987-89. The youth (15 to 29) share of the labor force declined from 43 percent in 1980/81 to 39 percent in 1990. 5. Employment growth decelerated during the 1980s, increasing 8.3 percent between 1980/81 and 1985/86, but only 2.8 percent for the remainder of the decade. This, coupled with the reduction in the rate of GDP growth, implied a slowdown in the rate of productivity growth, which increased 17 percent during the first half of the decade and only 13.3 percent during the second half. Employment rose relatively faster than labor force numbers between 1980/81 and 1985/86, so unemployment fell during this period. Thereafter, employment gains were relatively smaller than labor force growth, and the number of unemployed increased 15 percent from 1985/86 to 1990, with a significant (9.9 percent) rise in the unemployment rate during this period. Table 1-1. Labor Market Indicators, Selected Years Percentage change 1980/81-1985/86 1985/86-1990 Indicator 1980/81 1985/86 1990 Labor force size (thousands) 5,595 5,972 6,243 6.7 4 5 Participation rates' 46.5 47.5 52.2 2.2 9.9 Employment (thousands) 4,738 5,132 5,276 8.3 2.8 Unemployment (thousands) 857 840 966 2.0 15.0 Unemployment rate (%) 15.3 14.1 15.5 -7.8 9.9 Value addedb (thousands) 76,432 97,463 112,570 27.5 15.5 Productivityc (thousands) 16,132 18,833 21,337 16.7 13.3 Compensation per employed' 7,048 8,597 9,508 22.0 10.6 Unit labor cost, 0.4369 0.4565 0.4456 4.5 -2.4 Gross domestic capital formation per worker' 4,875 4,379 4,351 -10.2 -0.6 a. Noninstitunonal labor force as a percentage of population greater than ten years of age. b. Constant (1980/81) rupees, two-year average. c. Thousands of (constant) value added rupees per employed population. d. For 1980/81 and 1985/86, two-year average divided by two-year average deflator. e. Real value of compensation per employee per year divided by productivity. f. 1980/81 prices, Two-year average for 1980/81 and 1985/86. Excludes foreign investment. Source: Department of Census and Statistics, various labor force surveys, and national accounts. 6. Unemployment is a chronic problem in Sri Lanka. Since independence in 1948 it has never been recorded at less than 11 percent. It is largely a problem of young first job seekers: 37 percent of those between the ages of fifteen and twenty-four were reported as unemployed in the 1990 Labour Force Survey (annual average of quarterly data), and this age group accounted for nearly 60 percent of the unemployed. This cohort only compnsed 25 percent of the labour force, so the youth share of unemployment was 2.4 times as large as its share of the labor force. Moreover, only 63 percent of the fifteen- to twenty-nme-year-olds who reported working in 1990 were in paid employment, while 37 percent worked as own account or unpaid family workers. For all ages, the increase in unpaid family workers accounted for 85.9 percent of the total increase in employment between 1980/81 and 1990 (Department of Census and Statistics). 110 7. An important imphcation of high unemployment is that resources that could otherwise be available for savings and investment have to be spent on maintaining the unemployed. Data from the 1991 Quarterly Labour Force Survey indicate that 87 percent of the unemployed are supported by family transfers. If we take the figure of SL Rs 500 per month as an average maintenance allowance (this is 30 percent less than the eligibility standard for food stamps), note that 65 percent of the unemployed remain so for at least a year, and assume that the average duration for the remaining 35 percent unemployed is four months, then the total value of implicit transfers to the unemployed in 1990 amounted to SL Rs 4.6 billion, which is nearly equal to the total amount of domestic savings (SL Rs 5 billion) in that year. Duration of Unemployment 8. The average duration of unemployment in Sri Lanka is notably lengthy: nearly 65 percent of the unemployed in 1991 (first quarter) reported that they had been without work for more than twelve months. Using data from the 1985/86 Socio-Economic Survey, Bowen (1990) found that the majority of the unemployed had never held a job. The combination of high and lengthy unemployment among first job seekers suggests a generally low rate of labor turnover within the labor force. Once people find jobs, risk aversion in a high-unemploymentenvironment leads them to stay in those jobs. This reduces the availability of job openings for first job seekers. "Between 1981 and 1985, the elasticity of employment with respect to vanations in GDP in Sri Lanka was only slightly more than half that of Malaysia's... This likely reflects a relatively high cost of labour adjustment, due to severance provisions of labour codes, the high proportion of fixed costs in total labour costs, and low rates of labor mobility... Reduced flexibihty/turnover means a reduced number of job openings for first job seekers for any level of unemployment" (Kely 1992, p.2). Data from table 1-1 suggest that during the 1980s, the elasticity of employment with respect to GDP was only 0.24, that is, a 1 percent increase in GDP occasioned no more than a 0.24 percent increase in employment, on average. 9. Nor can this finding be attributed to a lack of variation in GDP: Sn Lanka has a highly volatile pattern of GDP. "For the period 1985- 1990 the coefficient of variation (year to year) for Sri Lanka's GDP was 36% higher than that for Thailand and 160% higher than that of Malaysia Over the period 1978-1990, Sri Lanka's coefficient of annual variation in GDP was 2.84 times that of Malaysia's" (Kelly 1992, p.2). Given the variation in the denominator and the lack of response in the numerator, the most likely conclusion is that labor flexibility is rather low in Sri Lanka. Underemployment 10. Underemployment can be measured in a number of ways. Like many developing countries, Sri Lanka uses an hours-based measure of underemployment. Aladina suggested that such a measure implies that "... underemployment in Sn Lanka was around 20% in the eighties since... about 20% [of those working] said they were available for more work in the [Central Bank] Consumer Finance Survey of 1981/82" (Alailuma 1991, p. 19). Bowen, however, argued that such a definition of underemployment is not very useful, as ".. over 30% of the people who claimed to have worked 50 hours or more in the [1985/86 Socio-Econonuc] survey week also claimed to be available for more work" (Bowen 1990, p. 10). 11. Bowen seems to have overlooked the wage component of underemployment.? If people already working fifty hours or more a week claim to be available for more work, thus might be explained by the fact that wages are so low that more work is required to lift them and their families from poverty. A 1990 World Bank study indicated that poverty in Sri Lanka is not so much the result of unemployment as it is of low wages. "The poor are for the most part the 'workmg poor'... (i) the poor engage themselves in activities of low marginal productivity but are classified as 'employed' according to survey definitions of employment, and (ii) labor productivity and real earnings seem to have been declining [between 1978/79 and 1986/87] bringing more of the 'employed' into the ranks of the poor" (World Bank 1990, p. 18). According to this source, only 7 percent of families designated as poor in 1986/87 were headed by a person who was unemployed or not in the labor force. By contrast, 27.5 percent of families headed by an employed person were poor. If these proportions are applied against the 1990 estimates of the employed, the following results are obtained: Unemployed 1,005,000 Employed, but family poor (27.5 percent of employed) 1,640,000 Available for more hours at current wage (20 percent) 1 000 Total 3,838,000 Labor force 6,968,000 12. This yields a measure of unemployed plus underemployed of 55 percent of the labor force. Clearly, this is an outside estimate that includes significant double counting, for example, many of those available for more work are from families in poverty. However, the fact that 27.5 percent of families headed by an employed person are in poverty is not without intrinsic interest, as this clearly relates to another component of underemployment. If those who say they are available for more work are excluded from the calculation, one is still left with an unemployment and underemployment rate of 38 percent of the labor force. 5. Ideally, underemployment would be measured so as to include not only those forced to work fewer hours than desired, but also those who are forced to work at wages lower than their human capital endowments would justify. 111 Sectoral Distribution of Employment 13. Table 1-2 presents data pertaining to shifts in sectoral patterns of employment from 1980/81 to 1990. The largest relative employment increases occurred in mining and public utilities (electricity, gas, and water), corresponding to their relatively large rates of output increase. However, the lack of correspondence between employment and output growth by sector is noteworthy.' Service sector employment also increased significantly, as did GDP originating in the sector. This sector includes tourism-related employment in personal services, as well as public sector employment. 14. There are two sources of data for employment in the public sector, and they vary significantly in terms of estimated levels of employment. The Census Department's Census of Public and Corporation Sectors shows total public employment in 1990 at 700,592 The same department's Quarterly Labour Force Survey estimates the number of public-sector employees at 1,131,944 for 1990 (annual average of quarterly data), which amounted to 38 percent of all paid employees in that year. 15. Within manufacturing, employment in the garment sector accounts for most of the sectoral employment increase over the decade. The garment industry employs large numbers of unskilled or semiskilled female operatives. Textile, weaving, and apparel products have made up slightly more than 19 percent of total value added by manufacturing since 1987. However, the value of textile exports as a percentage of all export processing zone exports amounted to nearly 75 percent in 1989, and the employment share within this subsector was 70 percent. The longer-term employment outlook for garments is extremely uncertain due to possible quota changes associated with the GATT Multi Fibre Agreement. In 1989, Sri Lanka had only a 2 percent quota in the U.S. market. This will be an important constraint on a recent government initiative to create employment opportunities in rural areas by establishing 200 additional garment factories. Moreover, the garment industy has a high labor requirement per production unit, a high capital/labor ratio, and low labor absorption over time (per production unit) This comes about because, within luited quota constraints, output expansions are largely achieved through productivity increases, and declines in output are absorbed by declines in productivity. 16. A more optimistic outlook characterizes the tourism industry Tourism has been extremely sensitive to domestic political conflict. From a peak of 407,000 in 1982, arnvals slumped to only 185,000 in 1989, with revenues showing a similar decline from US$147 million to US$76 million. The Ceylon Tourist Board estimates a 15 percent increase in revenues between 1990 and 1991, with an even larger increase expected for 1992 The board also estimates that direct employment in the industry amounted to 26,900 in 1991, with indirect Table 1-2. Employment Distribution by Sector, 1980/81 and 1990 Average annual GSP growth 1980/81 employment 19901 employment 1980/81-1990 Sector Thousands Percent Thousands Percent Percent Agriculture 2,173 45.9 2,483 47.1 1.5 2.8 Mining 64 1.3 100 1.9 5.9 6.6 Manufacturing 568 12.0 718 13.6 2.8 5.0 Electricity, gas, water 18 0.4 27 0.5 5 3 16.2 Construction 229 4.8 194 3.7 -1.6 0.5 Trade 491 10.4 491 9.3 0.0 6.2 Transport 197 4.1 217 4.1 1.1 4.9 Finance and industry 53 1.1 60 1.1 1.4 5.7 Services 648 13.7 839 15.9 1.4 5.7 Not defined 297 6.3 145 2.7 -5.4 - 6. The year 1990 was not a typical year for Sri Lanka, corning as it did right after the highly disruptive years 1987-89 (the JVP insurrection). 112 Average annual GSP growth 1980/81 employment 1990 employment 1980/81-1990 Sector Thousands Percent Thousands Percent Percent Total 4,738 100.0 5,276 100.0 1.2 5.0 Annual average of quarterly data. Slight discrepancies due to rounding. Source: Department of Census and Statistics, national accounts, and labor force surveys. employment consisting of an additional 38,000 jobs. The government's development strategy envisages a growing future role for tounsm, and plans to attract foreign investment to support that growth. Occupational Distribution 17. Unfortunately, definitional changes across time hinder the ability to calculate shifts in the occupational distribution of employment. Some of the changes are minor, for example, the 1990 survey broke out professional occupations separately from technical and associated categories, while the 1980/81 survey combined them); others are of greater consequence. In 1990, a new occupational category, elementary occupations, was created. This category appears to include lower skilled agricultural workers and some operatives and laborers, but in what proportions is unknown. In those areas where comparisons are possible, expected results are observed: professional and technical personnel and managers and administrators increased their share of the employment distribution, rising from 6.3 percent in 1980/81 to 8.9 percent in 1990, while sales and clerical workers declined in relative importance, from 14.0 percent in 1980/81 to 4.1 percent in 1990. Notably, surveys of employers have not yet reported specific skill shortages (with certain exceptions in electrical repairs and doctors and nurses, both of which have to do with emigration), but there are constant complaints about the lack of ud-level managerial talent (Kelly and Culler 1990). This would imply that Sri Lankan industry is operating with production processes that lead to factor substituton away from skilled labor, in favor of task simplification, down-skilling, overstaffing, supervision, and compensation with low wages and prices. It is presumed that this is a transitional problem that will be overcome once business confidence in labor market signals and outcomes is restored through faster growth and policy reform. 18. The rather large share of employment accounted for by the elementary (lower-skilled, lower educated workers) occupations is another manifestation of continuing labor slack over time. According to the annual average of the 1990 quarterly labor force surveys, about 35 percent of the employed worked in elementary occupations. "The large weight of the agricultural work force in the total work force produces an occupational structure with a high proporton of elementary occupations and correspondingly low proportions of the professional, technical, and craft grades... Another feature of the occupational structure that should be noted is the contribution made by the personal services sector. The sector has the highest proportion of the managerial, professional and technical grades. This sector comprises mainly of social and other personal services delivered by the state and contains the majority of the public service cadres including the staff in the health and educational services. When the labor force engaged in personal services is excluded the proportions of these upper three segments of the work force drop sharply" (Marga Institute 1992, p.17). Similarly, Alalima notes: "The largest group in terms of the number entering the labor force, currently employed and unemployed are those with a Grade 5-10 education. If technology and economuc productivity are to be upgraded in the economy, retraining programmes on a large scale will be required for this group" (Alailuna 1991, p.36). Overseas Employment 19. An estimated 1.5 million people out of a population of 17.0 million are currently outside Sri Lanka, one of the highest proportions of migrants of any country in the world. Of these some 200,000 are refugees in southern India, 300,000 are refugees in other countries (and less likely to return), 600,000 are guest workers in Arab states (of whom 60 percent are domestic workers and most of the rest are in semiskilled trades), and 400,000 are better-qualified people working abroad, together with their families. It is said that one-third of Sri Lanka's doctors are working abroad. Remittances are estimated at US$700 million, including US$500 million from workers in Arab countries (The Economist April 3, 1993). 20. "Current estimates of employment abroad indicate that approximately 100,000 Sn Lankans migrate annually to work in foreign countries Firm estimates of net additional employment after accounting for returning migrants is likely to be in the region of 50,000. 113 Housemaids account for about 60% of the migrant labor.' A large proportion of these housemaids have not been in the domestic labor market pnor to migration, and their employment abroad may have little impact on the labor force, either employed or unemployed. The balance 40% comprises workers drawn from a wide range of occupations and levels of skills. They include a fair proportion of workers from crafts and related trades, dnvers, plant and machine operators, sales and service workers such as workers from the hotel industry, professionals including accountants, engineers and doctors. This is particularly applicable to the professional and related grades which require the longest and most costly training" (Marga Institute 1992, pp.31, 32). Anecdotal evidence suggests that a high proportion of National Apprentice and Industrial Training Authonty program completers migrate to the Middle East, which raises the question of whether a cost recovery mechanism ught not be appropriate in such instances. Aside from the remittances generated by spells of overseas employment, there may be a certain degree of skill upgrading generated by the process: hotel personnel who have worked in the Middle East, for example, command a prermum on return. The problem is that far too many fail to return because of security or wage concerns. Wages 21. As Sn Lankan labor markets are relatively segmented, wage determination processes and outcomes vary considerably across sectors. Implicit wages in the agricultural sector are the residual of value of production mmus costs. The formal sector is governed by administered wage practices (mmunmum wages and other labor codes, collective bargaining, wage leadership), and the informal sector is guided by changes in administered wage regulations or by prices and costs (much of the sector is characterized by self-employment). The balance of political power, particularly as expressed by politically-affiliated unions, plays a significant role in wage setting in Sri Lanka. 22. Data from table 1-1 indicate a rise in real compensation per employee on the order of 3.7 percent per annum during the 1980s, with most of the increase taking place in the first half of the decade. These gross compensation data reflect changes in the occupational and sectoral mixes of employment, however, and are therefore not necessarily accurate indicators of changes in straight-time wage rates, nor of average earnings of production workers or other occupational categories. 23. Table 1-3 shows indexes of real minimum wages in the government and in the wage board-controlled private sector from 1985 to 1990. Admittedly, mnimum wages are not the same as average wages, but in Sri Lanka, with its high proportion of elementary occupations, there would appear to be high correlation between the two measures. Note that only two of the seven wage categories shown separately recorded increases over the six-year period, and the average rate of increase across all occupations covered by wage board regulation was only 1.3 percent per annum. With the low rate of productivity increase observed between 1985 and 1990, it is not surprising to find accompanying low growth (or declines) in real wages, particularly at the lower edge of the occupational spectrum. Nor is it surprising that pressured public budgets (and a distaste for retrenching public employees) resulted in a decline in the real wages of government employees. However, the large discrepancy between wage patterns in agriculture and, say, services, is particularly noticeable. This could be explained by any of three hypotheses: the low base of agricultural wages in 1978 relative to other sectors, the fact that the majority of estate lands were under the control of public corporations up to 1992, and the influence of unions in the agricultural sector. Estate unions are among the most powerful in Sri Lankan labor markets. Unfortunately, the data are insufficient to permit assessment of the hypotheses. 24. Generating a precise estimate of the nonwage component of labor costs in Sri Lanka is impossible. Judgmg from the apparent low degree of labor flexibility, the implicit cost of carrying unproductive labor during periods of production slack are high in relation to straight-time hourly earnings, which is why labor costs are high in relation to value added, even while wages are low. Some of these nonwage costs are not reported to survey interviewers (for example, transportation allowances or company-provided vehicles would likely not be reported in household surveys), some are not even known by employers (for example, the implicit cost of absenteeism, which in a number of firms runs on the order of 20 percent on a daily basis), and many regulations are avoided or evaded. Employers are supposed to contribute 12.0 percent of payrolls to the Employee Provident Fund, an additional 3.0 percent to the Employee Trust Fund, and to keep a further 4.5 percent in reserve under the Gratuity Act of 1983.8 Moreover, because of the large number of legal holidays, employers must also plan for a significant degree of overtime premiums. In sum, these components imply a mnimum disincentive to labor utilization in excess of 20 percent of wages. Nonwage Payments 25. Conversely, the 1985/86 Socio-Economic Survey of the Department of Census and Statistics indicated that nonwage income accounted for 33.7 percent of total family income, much in the form of in-kind consumption of agncultural output. Wage and salary income, according to the same source, accounted for about 52 percent of total family income, on average, with the remainder spread across interest, dividends, remittances, and imputed income from agricultural and nonagricultural activities (37.3 percent). 7. Around 77,000 persons, mostly female domestic workers, had to be repatriated due to the Gulf conflict. The Bureau of Foreign Employment estimates that nearly 14,000 of these persons require financial assistance, such as loans for small businesses. 8. Originally intended as a reward for longevity and loyalty, the provision applies to all after five years of continuous service. Amerasinghe (1991) cited a case in which an employee who was legally terminated for theft was awarded a gratuity payment. The provision is a disincentive to worker mobility. 114 Table 1-3. Indexes of Real Minimum Wages, Selected Industries and Occupations, 1985-90 (December 1978 = 100) Government employees Year Nonexecutives Minor employees Central government Teachers 1985 112.8 129.3 121.2 105.4 1986 109.3 125.3 117.5 97.7 1987 101.5 116.4 109.1 90.7 1988 117.0 133.1 125.4 106.6 1989 114.4 128.4 121.9 106.3 1990 104.3 121.8 113.2 96.0 Growth rates -0.3 -0.3 -0.3 -0.2 Coverage by wage boards Year Agriculture Commerce Services Average" 1985 116.6 82.1 76.6 104.1 1986 113.8 88.6 75.3 103.2 1987 110.8 93.9 72.0 101.8 1988 121.6 87.4 73.8 107.9 1989 125.7 96.6 71.0 112.0 1990 122.7 89.9 63.5 107.6 Growth ratesh 1.9 1.8 -3.2 1.3 a. Percentage change per annum. Calculated on the basis of the least-squares trends of the loganthms of the index numbers. b. Includes occupations other than those shown separately. Source: Central Bank (1985, 1987, 1989, 1990). Unit Labor Costs 26. Unit labor costs actually rose during the 1980s, at about 4.5 percent per annum according to table 1-1. This was due to a faster growth mn wages than in productivity from 1980/81 to 1985/86, and only a modest correction thereafter. This is a rather poor record. Moreover, when the data are adjusted for vanations in international exchange rates, the record deteriorates. Using data from a survey of forty employers in and around Colombo along with value added data from the Central Bank, the World Bank has shown that: "Labor cost adjusted for productivity [real unit labor costs] increased substantially in 1987 and 1988 reflecting the sustained wage increase in the export sector... The resulting adverse effects on competitiveness were offset partially with the large depreciation mn 1989 (from Rs. 31.8/US$ in 1988 to Rs. 36.0/US$ in 1989) but the high inflation and the inadequate exchange rate adjustment throughout 1990 quickly aggravated the competitiveness much further. In fact, from 1987 till 1990, the accumulated increase in the unit labor cost has been 22 4%" (World Bank 1992, pp. 48, 49). 115 Additional Constraints on Labor Market Performance 27. Changes in Sri Lankan labor market indicators over time are, as mentioned, largely explained by macroeconomic developments. detenorating terms of trade, low (but improving) savings and investment, slow growth, lags in exchange rate responsiveness, and relatively large increases in labor supply. There are, however, additional microeconomc constraints that serve to reduce labor flexibility and to lower worker performance and productivity. Among the more important of these constraining influences are imperfections in product markets, problems in industrial relations, and labor codes. Market Structures 28. Since colonial times, there has been a high degree of concentration in Sri Lankan markets, corresponding to what De Soto (1989) has described as "mercantilism" in the case of Latin America. Indeed, mdustry structure in Sn Lanka fits well with the preconditions of a rent- seeking economy (Kreuger 1974). This is partly explained by the small size of the domestic market, and largely by protectionist policies in the preliberalization years up to 1977, along with the slow rate of reform thereafter. Even in recent years, a high degree of market concentration persists. Kelegama (1990) has provided data for 1989 showing that the largest three firms accounted for 53 percent of total output in food, beverages, and tobacco, 52 percent of paper and paper products; 78 percent of petrochemicals; 96 percent of basic metals; and 83 percent of other manufacturing. In 1980-81, concentration was even higher, due to the existence of state-controlled monopolies (which are now being privatized). In fixing pnces to recoup inefficient production costs, these state monopolies discouraged the emergence of ancillary export industries. Not only does such concentration lead to product pnce distortions, it also leads to distortions in factor pnces and mobility. Industrial Relations 29. According to one long-time participant in the Sn Lankan collective bargaining process: "It could be stated without fear of contradiction that Labor-ManagementRelations in Sn Lanka are by and large antagonistic. The two parties have not appreciated the need to work with the other" (Amerasmghe 1992, p. 2). Due to a number of histoncal antecedents, there is a great deal of class-motivated distrust in industrial relations. Because of this, wage settlements are often more politically than econonucally conditioned, with the result that wages often bear little correspondence to productivity, Many pnvate sector firms index wages to cost of living fluctuations, which rarely fall. Incentive payment systems are extremely rare outside the multmational corporations in the free trade zones. 30. Unions in Sri Lanka are not so much economic as political agents. Vanous unions ally themselves with political parties, and thus their influence is neither direct nor discernable. No data are available on collectively negotiated wage settlements, and no evidence exists that union wages are any higher than nonumon wages. A general strike took place in July 1980, after which large numbers of workers were not rehired by their firms or within the public sector. This seriously hmdered union influence, which is now largely limited to participation in mnmmum wage setting, and the protection of workers' rights under existing labor codes. Table 1-4 shows the number of work days lost due to strikes. Both the number of recorded strikes and the number of work days lost declined between 1980 and 1989, the latter by 93 percent. Table 1-4. Strike Activity, 1980-89 Year Number of strikes' Number of workers involved Number of work days lost 1980 227 78,555 334,215 1981 308 216,073 465,026 1982 217 82,963 388,720 1983 147 53,140 218,742 1984 230 87,322 507,282 1985 146 54,781 169,639 1986 84 37,333 64,630 1987 68 22,648 4,826 1988 64 20,206 36,501 48 15,122 24,451 a. Number of strikes that ended during year shown. b. Provisional 116 Source: Department of Census and Statistics (1991b), based on data from the Labour Department. 31. By contrast, during the JVP insurrection (1987-89), employers often used unions as a buffer between themselves and the more nlitant radicals. According to the Department of Labour, the unionized share of the labor force actually increased during the 1980s, from 23.9 percent in 1980 to 28.1 percent in 1991. In view of recent declines in public sector employment, where unionization is traditionally highest, dus finding is unexpected. However, the result is confirmed by the recorded increase in the number of registered, functioning unions between 1985 and 1989 by 4.9 percent, Labor Codes 32 Sn Lanka has a number of laws and regulations concerning employment rights, hours of work, minimum wages, strikes, and so on. Some duplicate, or even contradict, each other, and all of them taken together go beyond operative International Labour Organization conventions. A particularly sensitive piece of legislation is the Termination Act of 1977, which requires employers to obtain permussion either from affected workers or the Labour Department before disnussing any employee. A recent study prepared for the World Bank analyzed a nearly identical policy in India, and concluded that its effect was to lower employment by 18 percent relative to what would have been the case with freer adjustment pernitted (Fallon and Lucas 1991). While established employers have learned to accommodate the severance provision (buying off workers with generous severance packages), the act can be seen as particularly deleterious to the formation of new businesses, and thus an obstacle to foreign investment. Gender Issues 33. Within the ever present confines of sketchy data, most observers (for a review of the literature and available data see Rodrigo 1988 and Rodrigo and Deramyagala 1990) tend to agree that Sri Lankan women: * Have generally fared better in their labor markets than their sisters in neighboring south Asian countries; * Have virtually achieved panty in educational opportunities, save for the residual effects of gender stereotyping; * Are moving out of their homes into the labor market, but it is often a move from "out-of-the-labor force" into "underemployment"; * Earn less than men due both to occupational crowding of women in lower paid occupations and to lower earnings on comparable jobs. 34. Women's labor force participation rate increased during the 1980s, from 26 percent in 1980181 to 37 percent in 1990, while that of men remained constant at 67 percent during the decade. However, female unemployment increased marginally during the decade from 23.0 percent in 1980/81 to 23.4 percent in 1990, while the male unemployment rate declined from 12.4 percent to 11.1 percent during this period. "Occupational segregation is not so marked as in other parts of South Asia but some gender division of labor is visible in certain branches of activity. The cleavages become less conspicuous as one moves up the occupational scale. In the professional, technical and subordinate staff positions (e.g. government service) recruitment is open to both sexes without discrimination. Equality of opportunity is enshrined in the Constitution. In certain skilled occupations, supply side factors (e.g. the relative access to vocational training and other forms of skill acquisition) have perpetuated some gender division. At the higher levels of manpower, the administrative and managerial positions are still heavily male dominated (Rodngo and Deranyagala 1990, p. 20). 35. Data in table 1-5 indicate that there was improvement in the sex distribution of employment, with the number of women employed per number of men rising more than 50 percent across all sectors during the 1980s. However, by 1990, there was still only one woman per every two men employed. During the 1980s, paid employment for women did not increase at a rate commensurate with their increased participation in the labor force: 39 percent of the increase in female employment was in unpaid family work, 23 percent in own account work, and only 35 percent in paid employment (Aladtna 1991). 117 Table 1-5. Sex Ratios in Employment by Sector, 1980/81 and 1990' Sector 1980/81 1990 Percentage change Agriculture 0.37 0.53 43.2 Mining 0.08 0.18 122.5 Manufacturing 0.48 0.83 72.9 Construction 0.06 0.07 16.7 Trade 0.20 0.28 40.0 Transportation 0.04 0.06 50.0 Electricity and gas 0.12 0.08 -33.3 Finance 0.39 0.31 -20.5 Services 0.49 0.69 40.8 Total 0.33 0.50 51.5 Note: The sex ratio is the number of women employed divided by the number of men employed. a First quarter. Source. Calculations based on data provided in Alailuna (1991). 36. Literacy rates had nearly equalized between men and women by 1985/86 (80 percent versus 88 percent according to the Socto- Economic Survey). In that same survey, 16 percent of women respondents reported never having attended school, while men without schooling amounted to only 9 percent. At the other end of the educational spectrum, 3 percent of the women sampled reported Advanced Level or higher qualifications, compared with 2 percent for men. "In fact, in the Arts and Law streams the gender mix has tilted in favor of females" (Rodrigo and Deranyagala 1990, p. 9). 37. "A Workshop held in January 1989 by the Centre for Women's Research has revealed a pattern of sharp gender role stereotyping in vocational training activities. Girls were observed as being still confined to 'feminine subjects of sewing, commerce and service industry related training'" (Rodrigo and Deraniyagala 1990, p. 9). The authors then provide some specific illustrations of the effects of gender stereotyping: * A high concentration of women in the service sector (health, librarians, social work); * In technical colleges, two-thirds of the women are enrolled in commercial courses, while in the national apprenticeship system, only 20 percent of the technical-level apprentices are women; * In nonformal training programs run by the ministries of Education, Labour, and Small Industries, 90 to 99 percent of women trainees follow courses in dressmaking, sewing, and needlework; * Only 1.3 percent of the trainees in the Construction Industry Training Program are women, and no women have been trained in the Fisherman Training Centre. 38. In the 1985/86 Socto-Econonuc Survey, average monthly income for women, at SL Rs 552, was only 47 percent the average for men. Prior to 1985, miumum wages in many industries were set lower for women than men, and even when straight-time pay rates are equal, average earnings may differ. "As for the final pay packet, however, extra-stipendiary receipts (e.g. overtime, earnings from field work assignments such as subsistence and travellmg, etc.) show some variation by sex, giving males a premium over their female counterparts. No information is available on such receipts for a meaningful quantification of the resulting earnings differential" (Rodrigo and Deranyagala 1990, p. 18). 118 Unemployment among University Graduates 39. The government recently launched a scheme to find training places in the pnvate sector for graduates awaiting employment, estimated to number around 12,000. The problem has been exacerbated by the two-year closure of universities due to the political turmoil of the JVP years 1987-89 and subsequent simultaneous labor force entry by two graduating classes. Results to date have been rather disappointing The scheme was launched in February 1992. By September, only 3 percent of those referred to manpower placement companies had actually been placed in pnvate sector firms. Subsequently, the government announced that those who could not be placed in the private sector would be hired as teachers. That process is ongomg. 40. The reasons for these poor results are numerous and reflect problems among graduates as well as firms: 259 graduates (5 percent of the 5,257 referred to the placement companies) did not respond to letters sent by those companies; 68 graduates of 2,340 actually referred to firms (3 percent) failed to show up for initial interviews; an additional 117 (5 percent) refused the firm's offers of training, citing low wages (mnumum of SL Rs 2,500 per month) or difficulties in relocation. A significant number apparently applied only to be given a chance to be employed as teachers or translators in the government. Two thousand positions were mitially reserved for this purpose, although the final total could well surpass 8,000. Many applicants were already employed and were seeking improved wages. A random sample of 200 applicants found 51 percent to be older than thirty, of which 4.5 percent were forty or older. 41. Smaller firms in rural areas note that they are not in a position to accommodate the luxury of management trainees Some firms operate profit shanng schemes and feel that their employees would resent special training places for university graduates. One of the major obstacles to trading firms engaged in international competition is the lack of English-language ability among graduates. The random sample of 200 applicants indicated that 61 percent were liberal arts graduates, while firms say they require science or business graduates. Under all interpretations, however, these results indicate the complete absence of linkage between universities and the business community. Conventional wisdom seems to be that graduates are either working in the Middle East or unemployed in Sn Lanka. Students themselves acknowledge this lack of linkage and have begun to recommend that they be given an opportunity for cooperative study programs, under which they would work as interns for a period during their university studies. 42. Such results suggest that applicants can be classified according to four categones: those who are working and who have access to family resources; those who are not working, but are from better off families; those who are working, but are from poorer circumstances; and those who are not working and do not have access to intrafamily transfers. The last group probably consists of between 10 and 20 percent of all applicants. This is the group of immediate policy concern and, by all accounts, is benefiting from the placement scheme as placement rates are running between 5 and 15 percent, depending on the placement company and the base used for the calculation. Similarly, firms can be categorized by their ability to participate: small firms have difficulties in expanding their work forces or in providing in-house training 119 B. Teacher Training: Science and Mathematics Education During the nussion a consultant, Professor Betsy Ann Balzano, financed by the Asian Development Bank (ADB), reviewed science and mathematics education under the following terms of reference: * Identification of critical issues of science education with a view to preparing students for (a) more advanced education and training in science and technology, and (b) employment. * Specific analysis ofsecondary science education in terms of its content, textbooks, teacher training, and classroom practice based on discussion with country counterparts, educators, curriculum planners, and resource persons. * Suggestions for strategies and programs for improving science education within (a) general secondary education, and (b) higher education. I. This section consists of an excerpt from her report, which reflects her views and not necessarily those of the ADB or the World Bank. 2. Table 1-6 reviews student achievement in science and mathematics at the Ordinary Level (OIL) and Advanced Level (AIL) examinations. These figures are dismal by any standard. What factors contribute to this low student performance in science and mathematics? Table 1-6. OIL and A/L Science Results, 1991 Examination Mean Percentage scoring less than 50 O/L Science 29.98 87 O/L Mathematics 20.83 92 A/L Physics 33.31 83 A/L Chemistry 38.31 76 A/L Botany 43 05 68 A/L Zoology 37.98 82 AIL Mathematics (pure) 33.12 80 A/L Mathematics (applied) 40.84 77 3. The education factors that emerge as potential contributors to low qualitative achievement are the curnculum, textbooks, materials and facilities, examinations, and teachers. Some factors outside education probably also contribute, for example, health and nutrition, poor learnmg environment in the home, and lack of community support. These external factors were not part of this review. The Curriculum 4. Science for years VI, VII, and VM is an integrated syllabus. It is a general science approach covering topics in biology, chemistry, physics, and the environment. It is teacher centered and heavily based on content as opposed to the processes of science. Student activities and problem solving are not a prominent component. 5. O/L science (years IX, X, and XI) is more focused on chemistry, physics, botany, and zoology. Health is also incorporated into science in years IX, X, and XI. whereas health appears as a separate subject in years VI, VII, and VI. 6. At years XII and XM (A/L) streaming occurs. The AIL science stream, in place since 1979, consists of physics, chemistry, botany, zoology, pure mathematics, and applied mathematics. Adjustments in content and methodology have occurred, but none were major enough to warrant a syllabus revision. A major revision of the syllabuses has been completed and a proposal for implementation at year XII in 1994 and year XIII in 1995 has been submitted to the Ministry of Education and Higher Education. The proposed syllabuses update content and move to more process development and recognition of new technologies and methodologies. 120 7. Science syllabuses for years VI to XI need review and revision. The lower secondary (years VI, VII, VIII) science should move to a student centered approach, with less content and more depth. At this level students need the opportunity to explore and interact with materials and each other. Developing problem solving and critical thinking skills should receive more emphasis. 8. The middle years should provide students with opportunities to engage in activities that match their social, emotional, and cognitive development They are social beings. Activities that involve peer interaction and provide long-term engagement in problem solving are appropriate for middle level students. If students are to function in a cooperative society as adults, then they need to learn the skills that will help them to do so. 9. One of the promising strategies to help students acquire a collaborative outlook is cooperative learning Most young adolescents want to be part of a group, so cooperative learning seems to be a natural way of helping them to learn. Just as unportant, learnmg how to work in cooperative groups and acquiring related social skills helps students learn more of the subject at hand. Students have higher achievement, increased retention of content, greater use of higher-level reasoning skills, and higher self-esteem. 10. Cooperative learning would also support the objectives of the school curriculum, which focus broadly on: * Achieving personal development * Preparing individuals for life and work * Achieving national and community development * Achieving national unity * Ensuring survival of the human species. 11. Science in years IX, X, and XI certainly demands a review if the new AIL science stream goes into effect in 1994. There is already a curnculum gap between O/L and A/L. This gap will be even greater with the new A/L syllabuses. This has serious implications for students moving from O/L to A/L in 1994. 12. Mathematics presents some serious problems. At all years achievement in mathematics is extremely poor, although applied mathematics performance at A/L is better than mathematics at other levels. This could be a result of its focus on practical applications as opposed to a theoretical emphasis. 13. The revised A/L mathematics is an attempt to modernize the syllabus and to coordinate it with science at A/L. Poor performance in mathematics affects performance in science, particularly physics and chemistry. Research evidence indicates that mathematics achievement is a predictor of achievement across the educational system through higher education. The mathematics curriculum should receive serious attention from years I through XI along with attention paid to teacher preparation, knowledge, and sills. Textbooks 14. From a student's point of view (and perhaps the teacher's) the major curnculum document is the set of textbooks. In years I to XI textbooks are distributed free of charge The textbooks are written and published centrally and intended to match the syllabuses of the subjects. Because the students have access to textbooks and because of the function that they serve, it is important that the textbooks accurately communicate the syllabuses and that they are of high quality. The science textbooks should be well illustrated, with pictures and diagrams to help students grasp concepts. Pages of dense text lacking illustrations, pictures, or diagrams often go unread. Including activities for individuals or small groups of students that use readily available and inexpensive materials not only helps to break up dense text, it also helps students better understand science concepts 15. In addition to the science texts, supplementary reading matenals should be made available. How and why books on science topics, biographies of scientists, and special subject books at varying reading levels are examples of supplementary reading. This is an area where the private sector's help could be enlisted. 16. A critical aspect is who writes the textbooks. Currently, the constraints of organization place the burden of textbook writing and production on a small staff who do a remarkable job considering the circumstances. Broadening the participation in textbook writing could go a long way to alleviate the burden on the current staff. One of the avenues for the professional development of teachers could be involving teachers in the writing of textbooks and teachers' guides. More teacher involvement moves the ownership of the selection of content, activities, and presentation closer to the classroom and increases the probability of implementation. It also raises the likelihood of activities being included that use available materials and reflect the realities of the classroom. 17. The production of a guide for textbook writing would be helpful. Setting some guidelines for style, language, and so on would help people interested in contributing to textbook writing. A writing guide could also be of value if the private sector were enlisted in developing 121 trade books. A wnting guide is a way to set standards and to provide for quality control. Well-prepared textbooks and teachers' guides, along with workshops and seminars for teachers on how to use the text material, would likely be major steps in improving mathematics achievement at levels I-XI. Materials and Facilities 18. Observations in urban and rural schools indicated a poverty of materials and facilities for teaching science and mathematics. The teaching-learnung environments visited were resource poor. In the rural schools only the standard textbook was available. The storage space was lunited to a small, inadequate cupboard in the principal's office. Even the "better" equipped schools had limited equipment for teaching science and mathematics. 19. There were few classroom displays: posters, diagrams, or models. The classroom environments tended to be sterile and lacked visual stimulation. Heavy reliance on teacher talk was evident with little emphasis on individual or group work in science or mathematics. Front and center teaching was the norm. 20. The few practicals observed were heavily dependent on the teacher and tended toward following specific teacher direction rather than open exploration and student-raised questions for study. Conversations with teachers, students, and others support the conclusion that there is a major lack of materials and facilities. 21. Minlabs and resource centers, included in donor-financed projects, might be a good means of overcoming the lack of facilities and materials. It is critical that teachers be involved early on in their development. The unplementation process needs to include careful and continuous teacher development and support in using the materials and facilities. Teachers' guides and support personnel are essential or the materials will not be used. There is enough evidence from projects in other countries to indicate that unless teachers are involved in material selection and facility design at the start, boxes remain unopened and facilities unused or used for activities other than those for which they were designed. 22. Mmilabs can be a valuable resource to teachers if they are readily accessible, easy to use, adequately cared for, provide appropriate materials, and provision is made for resupplying consumables. These are some considerations that need to be taken into account. Just providing mmnilabs is not sufficient. Developing and expanding resource centers where teachers can meet, share ideas, and learn new methods and content is a positive and ambitious plan. It is also very expensive. 23. The framework and context for the resource centers is not clear. Facilities alone will not do the job. The relationship between the resource centers and the other components of teacher education are not clearly delineated. Defining who does what and when as well as the lines of accountability for resource centers would be helpful. Examinations 24. At present, the Sn Lanka education system is exammation driven. At year V, the exammation in mathematics and language identifies scholarship students and selects students for access to "better" schools. The O/L exammations serve as certification of students for employment if they leave at this point or for selection to A/L The AIL examination serves to select for future education or certification of skill/achievement level for employment. The heavy use of crammers for examinations indicates the importance attributed to these examinations and the individual's performance. 25. Gaps appears to exist between what is taught and what is tested. The examinations include material beyond what is specified in the curriculum. The examinations set performance standards and learning requirements as opposed to the objectives of the curriculum setting the standards of performance expected of students at vaying levels of the educational system. 26. A major issue that needs to be addressed is the purpose of the examinations. If the examinations are to measure student achievement in school, then they should be aligned with curriculum objectives. If they are not, then they measure something other than school achievement. 27. Using the examination system as the lever to improve the quality of the teaching-learnmg process in the school system needs to be done with great care. Indeed, what is tested will be taught, but it may be taught through "tutories" as currently occurs and not in the classroom. Designing an assessment system for higher order thinking skills and practicals is very difficult. This is not to say it should not be attempted and developed. Many people believe that if the equivalent effort that has been devoted to testing and assessing content knowledge were devoted to designing assessments for higher-level thinking skills and practicals, appropriate instruments would emerge. Supporting an examination center to take on this task may be appropriate. However, an examination center without the alignment of curnculum, textbooks, teaching methodology, and examinations will produce limited results Teacher Education 28. The teacher may be the most critical variable contributing to pupil achievement. Teacher education is a complex process that occurs over the teaching life time. Unless teachers are life-long learners, the interactions between teachers and learners stagnate. 122 29. Teacher education occurs in the form of pre-service (college of education) and in-service (teacher colleges, the National Institute of Education [NIE], distance education, universities, and so on) training. Many resources have been devoted to pre-service training and upgrading through r-service training. Currently there is an ambitious plan to upgrade untrained teachers by 1994. 30. The whole area of teacher education raises important questions. If one believes that teacher effectiveness is the key to improving the quality of education, then one needs to address the following: * Recent Sn Lankan research shows that pre-service education is most effective, but expensive. Even distance education is not inexpensive. Should the long view be to make pre-service education the focus of quality improvement? * The quality of the teacher trainers (educators) is very important How up-to-date and qualified are the science and mathematics educators in terms of content, methodology, and knowledge of how students learn science and mathematics? It is possible that a small group of "experts" dominates the system and recycles the same methods and knowledge. * Keeping up-to-date with the knowledge and research accumulating in science and mathematics curnculum development and teaching methodologies and conceptual development to students is not easy. How is new knowledge in these areas infused into the system? * Teaching can be a lonely and isolated profession. Industrial countries struggle with ways to "professionalize" teaching and provide incentives for teachers to keep them motivated and in the classroom. What are the incentives for teachers in Sri Lanka9 What are the support mechanisms for teachers9 The master teacher system is a good idea, as is starting a career ladder for teachers and a support mechanism. The master teacher program should include helping teachers learn to work with their peers in peer coaching situations and programs such as teachers as partners. * Supervisors and principals should be included in some of the in-service work for science and mathematics teachers. It would be interesting to try some m-service training (and follow-up) of teams composed of teachers and/or principals, supervisors, master teachers, and others. * The curriculum for teacher education needs a hard look as does the staffing of colleges of education and teachers colleges. There is a shortage of quality, full-time lecturers and instructors in science and mathematics. A question that keeps surfacing is what is the profile of science and mathematics teacher educators in Sn Lanka? Recommendations 31. There are several proposals for improving the quality of education and equity in the Sn Lankan education system. These include developing the curriculum, introducing a national education testing service, developing schools of excellence, improving teacher education, developing facilities, and providing equipment. 32. With unlinuted funding and well-defined management systems, the recommendation would be to support all the proposals, with less than enthusiastic support for the centers of excellence schools. Funds, personnel, and management are the parameters that create limits. The national education testing service is a project unto itself and should be treated as such. The testing service is not limited to school examnations and it muddies the water to include it in the issues of quality and equity in the educational system. 33. The developmentof schools as centers of excellence has the potential of making the already "good" schools richer and creating a wider breach between them and the already disadvantaged schools. It is an area where caution is advised. This is put forth in view of the education leaders appearing to be strong supporters of the centers of excellence. 34. In the long term, real quality improvementin science and mathematics education is only going to come through long-term commitment and investment of funds and effort in: * Pre-service education accompanied by professional development of teacher education; * Textbooks, teacher's guides, and supplementary materials; * Facilities and equipment accompanied by m-service education. Science * The proposed revised syllabuses for the A/L science stream should be implemented. This will require actions such as: Printing and distributing syllabuses; 123 - Writing, printing, and distributing textbooks; - Preparing examinations; - Holding seminars and workshops to orient teachers to the new curriculum; - Specifying and distributing new equipment and materials to accompany the revised syllabuses. Tmelines and responsibilities for this rest with the Ministry of Education and Higher Education, the NIE, the cominussioner of educational publications, the commissioner of examinations, and the chair of the University Grants Commission * Science education in years VI to XI should be reviewed in light of the A/L science cumculum to determine if there are any gaps between the levels and whether, in practice, there is an appropriate emphasis on process science and problem solving. The results of O/L examinations, which are paper and pencil tests and measure the knowledge component, indicate that a majority of students who sit the test do not perform well in the area of science knowledge. There is no indication of students' attitudes toward or appreciation of science or their ability to use the processes of science. Examining, revising, and implementing new syllabuses takes about five years. The science and technical education staff of the NIE may be in the best position to undertake this work. However, it is a small, already overworked staff, and would need to be augmented to deal with years VI to XI science in addition to A/L science. Some of the steps that need to be taken are: * Designating a group to oversee the revision of science years VI to XI consisting of representatives from the NIE, teachers colleges, colleges of education, universities, educational publications, the Department of Examinations, and also master teachers and consultants. * Establishing a timelme and activities for review and revision including: * Surveying students' and teachers' views regarding current syllabuses, * Comparing current syllabuses to new A/L syllabuses and objectives of science education, * Establishing syllabus committees for years VI-XI, * Draftmg syllabus specifications, * Having teachers and other appropriate people review draft syllabuses. * Trying out syllabuses with groups of teachers and students, * Subrmtting syllabuses to appropriate departments, * Producing guide books and resource materials for teachers, * Trainmng resource teachers from each province in the content and methods of the syllabuses so that they can help conduct seminars and workshops for other teachers, * Preparing textbooks and supplementary materials and ensuring the provision of equipment and materials needed to implement the syllabuses. This is a huge undertaking. One possibility would be to divide the work into segments, one for years VI-VI and a second for years IX-XI. However, this could lead to fragmentation. Mathemanics * The mathematics curriculum for years I-XI should be reviewed by a committee. The exammation performance of students at the O/L is quite poor. A review of the syllabus and textbooks needs to be undertaken to determine the status of the cumculum and its emphasis on problem solving. The central role that mathematics textbooks play in teaching the cumculum calls for information on what exists. * A study of the existing mathematics curriculum (syllabus and textbooks) should be undertaken. This review could be conducted by local experts from the NIE, universities, teacher colleges, colleges of education, the Publications Department, and 124 teachers. Consultants familiar with mathematics curncula and textbooks should augment the local panels. Such a study would take approximately six-mne months. Textbooks: * As mentioned above, textbooks are a major source for the presentation of the curnculum. A review of the current status of textbooks in science and mathematics is recommended. The study needs to address factors such as teachers' use of textbooks in teaching the curnculum, how well the textbooks present the curriculum, accuracy and relevancy of the content, physical charactenstics of the quality of the textbooks, and availability. Such a review should precede any advice on improvements. * The textbooks should match the objectives of the curnculum. Although there is some coordination between the NIE curriculum teams, the Education Publications Department, and textbook writers it has been limuted. It is important that these groups have systematic interaction so that the translation of the science and mathematics syllabuses into texts for students represents the content and teaching/learning strategies promoted by the syllabuses. * A committee of local experts as described above and augmented by consultants should undertake a review of the current status of science and mathematics textbooks. An important question is how teachers and pupis currently used textbooks. - Do teachers guides exist for all the textbooks? - Do science textbooks integrate hands-on activities in years VI-XI? - Do student workbooks exist for mathematics that emphasize problem solving and critical thinking" - Do cnteria exist for evaluating textbooks? - What supplementary reading materials exist? * If both mathematics and science textbooks were evaluated, the task would likely take nine to twelve months. It would be beneficial to have specific information about textbook production and use to augment the implementation of any new curnculum. * The Miiustry of Education and Higher Education should consider developing a guide for writing textbooks. It is possible that a textbook review could supply some baselmes for such a guide. The private sector may be of assistance in producing such a guide Materials and Facilities * The introduction of mnilabs to meet the shortage of science facilities and equipment, particularly for small rural schools, is a plus for science teaching in years VI-XI. How well minilabs are distributed, cared for, and used needs to be determined. How do teachers use the nlab? Is there a safe, secure place for storage and adequate space to use the minlab? * Baseline data needs to be collected about the mmilabs and how process science is carned out in years VI-XI. Such a study could be carned out by the Department of Education Research and the NIE. The data could be collected by written surveys, site visits, and interviews. * The minlabs are claimed to be effective in providing teachers with equipment and facilities for science demonstrations and activities. How well they are used is a question. * The Ministry of Education and Higher Education needs to specify the policy for how the resource centers will function in relation to the other components of teacher education with emphasis on who does what, when, and the lines of accountability and responsibility. Exanunations * A plan exists for upgrading facilities and equipment and increasing the personnel at the Examination Center. The center handles an extraordinary number of examinations and needs up-to-date facilities and equipment as well as sufficient staff. The existing plan should be supported. * The large number of tutones that help students prepare for examinations should be investigated. It appears that the tutones fill a gap between what is learned in school and what is tested during the examination. It would be worthwhile to learn about the function and role of tutories. A study could be conducted by individual researchers, the Department of Research, or some other research body. 125 Teacher Educanon * A profile of mathematics and science education should be developed. Visits to colleges of education and teachers colleges indicate that there is a dearth of mathematics and science educators. Such a study could be carried out by the Department of Research, the NIE, or an independent research body. It would provide valuable base data for planning improvements in teacher education * The Ministry of Education and Higher Education should support a program to allow small groups of teachers and teacher educators to visit other developing countries to look at their education systems. Visits of two to three weeks would provide an opportunity for interaction and in-service development. * The current program to clear the backlog of untrained teachers should continue. The estimate is that in five years all the untrained teachers in the system would have undergone training. However, if the hiring of untrained teachers continues, it will affect the program. Therefore, it is recommended that only trained teachers be hired. * Major emphasis should be placed on improving pre-service teacher education. Assuming the backlog of untrained teachers is taken care of in five years, the main institutions responsible for pre-service education would be the colleges of education. Improving the curriculum of the colleges of education is of critical importance. * The Sn Pada College of Education provides a model for teacher education. Although this project is a total design, it offers valuable information about curriculum, physical plant, and equipment. * The present curriculum of the colleges of education should be reviewed, analyzed, and revised. A team of specialists from the NIE, colleges of education, teachers colleges, subject specialists, and consultants should carry out this task. * The team needs to: - Survey current teacher educators about the present curriculum; - Analyze the current curriculum in terms of content, pedagogy, and philosophy; - Conduct workshops and semimars to discuss findings and recommendations; - Prepare guidelines (objectives) for the teacher education curriculum. This is a six- to nme-month activity. * A plan should be developed and implemented to provide professional development for teacher educators of science and mathematics in particular. Unless the teacher educators present process and problem solving as a major focus of instruction, prospective teachers will have difficulty in both learnng it and practicing it. A leadership group from the colleges aided by consultants should plan this program. 126 ANNEX 2 GENERAL PRIMARY AND SECONDARY EDUCATION A. Restructuring the School System I. The Study ofEducation-EmploymentLmkages (Marga Institute 1992, pp. 47-48) discussed a recent proposal for a new school structure. "[It is proposed] to reduce the common cumculum schooling for all from its present 11 years by 2 or 3 years to one of 9 or 8 years so that the total 13 years of schooling gets divided into two clear segments of 9 or 8 years of basic schooling to be followed by 4 or 5 years of secondary/high schooling. The latter can have several cumcular options and exit points with meaningful certification.. .These two segments should never be allowed to be held in the same school although proceeding from one to the other should not be limuted to those reaching a certam achievement level... The restructuring attempts to achieve, through the major adjustment, solutions to several problems. [These are] providing a terminal point with a recognized certificate at the end of the basic school to the large cohort of early school leavers and those that fail in large numbers at the present O/L exammation, reducing the prevailing wide disparities in standards from school to school at both primary and second levels, reducing the large numbers of mefficient small units preparing pupils for both O/L and A/L examinations, reducing the pressures from parents seeking admissions at year I to prestigious schools, reducing the pressure on teacher training in having to provide courses in 17 specialisms in each of the two media and lastly reducing the oft quoted ill effects of the pen and paper only, one shot three-hour question paper type O/L and A/L examinations." 2 The proposal is for eight or nine years of compulsory education with a common cumculum culminating with a recognized graduation certificate in place of the current eleven years of compulsory education, which has not proved enforceable. The authors recommend that schools for this basic stage should always be separate from secondary schools. There are a number of advantages to this option. The extension would be helpful because children start school at age five, younger than in most comparable countries in the region, and dropout begins to bite in year IV, when pupils are only nine or ten years old and not ready for work. The 30 percent of pupils who currently drop out by year VIII or IX would have to be assured easy access to a longer cycle of basic education and a worthwhile credential, and the extension might persuade some of them to study hard, not merely to mark time in school knowing they are likely to fail. 3. However, for the plan to be educationally effective, many other complementary actions would be needed: the ongoing school location planning exercise would need to become a top priority; an accelerated school facilities consolidation, upgradmg, and expansion program would be required; the current cumculum revision would need to ensure that adolescents school leavers were equipped with self-directed learning skills and a work ethic; many teachers would need to be retrained; and teacher redeployment would need to be speeded up to cater to new school configurations. In addition, as poverty is the greatest cause of early dropout, welfare programs would need to be targeted to poor pupils, otherwise the mere provision of access to school would not reduce dropout. 4. The main disadvantage to the program, as other countries in the region have found, would be that pupils leaving school at year VIII or IX would likely be immature and undereducated for entry to the labor force, and thus still destined for unemployment or unskilled, low-paid work. The year VIII or IX graduation certificate is unlikely to provide a ready passport to employment without evidence that the certificate indicates attainment of an adequate range of competencies for employment. 5. A second, complementary proposal in the study is that secondary education would become a single phase four- or five-year program with cumcular options and varous exit points providing certification in specific curriculum areas. The structure of the system would change from 5 +6+2 to 8+5 or 9+4. Implicit objectives are to prevent the unacceptably high wastage in year XI, to take the pressure off pupils and schools at O/L, and to attenuate the social tensions caused by the unemployment of leavers with O/L and A/L qualifications. Underlying the policy option is an assumption that the majority of pupils would leave formal education after year VIII or IX, and that the remainder would be prepared for entry to universities, affiliated university colleges, and advanced technical training. 6. Even though the policy proposal is persuasive in some respects, it would be extremely difficult to sell to the public, which is weary of radical changes. Public acceptance may depend on whether the proposals were perceived primarily as reducing the length of formal education for all from eleven to eight or nine years or extending the opportunity for pupils to continue in secondary education through to A/L and university entrance. 7. Figure 2-1 shows the current structure of the education system. 127 Figure 2-1. The Structure of the Education System, 1991 Age 22+ Universities Professional Open Affiliated 18+ ~colleges University unive rsity colleges Betwen 2 and 3 percent el ter this It-vi- Technical colleges Upper secondary school Apprenticeships Nonformal 17 + (years XII-XIII) 25% enter Year XII education 15+ Secondary school (years IX-XI) Vocational- 75% enter Year IX technical units Lower secondary school (years VI-VII) 10+ 95% enter Year VI Primary school (years I-V) 5+ 98% enter Year I Note: Not to scale. Source: Gunawardena (1987). Mission Estimates Figures represent % of age group entering Government Schools in 1991. B. Miscellaneous Tables and Figures Table 2-1. Schools According to Medium of Instruction, 1989 (number of-schools) Sinhala Tamil Both Sinhala Muslim Tamil Muslim Sinhala Tamil Muslim Province schools schools Total schools schools Total schools schools schools Total Total Western 1,346 0 1,346 78 43 121 15 1 13 29 1,496 Central 968 0 968 374 94 468 14 14 4 32 1,468 Southern 1,167 0 1,167 13 27 40 1 1 3 5 1,212 Northern 24 0 24 801 49 850 0 0 0 0 874 Eastern 213 0 213 355 200 555 0 1 1 2 770 North Western 1,138 0 1,138 28 121 149 1 0 0 1 1,288 North Central 654 0 654 8 73 81 0 0 0 0 735 UVA 577 0 577 153 18 171 3 1 1 5 753 Sabar - Agamuwa 1,004 0 1,004 154 34 188 3 2 0 5 1,197 Sri Lanka 7,091 0 7,091 1,964 659 2,623 37 20 22 79 9,793 Note: Twelve schools were temporarily closed are not included. Source: Wijesundera (1991). Table 2-2. Pupil Enrollment by School Year and Language of Instruction, 1989-91 (number of pupils) 1989 1990 1991 Year Sinhala Tamil Total Sinhala Tamil Total Sinhala Tamil Total I 304,516 115,441 419,957 296,149 117,019 413,168 296,076 114,405 410,481 II 318,879 113,590 432,469 309,613 112,178 421,791 303,001 117,090 420,091 III 325,777 111,085 436,862 316,718 111,175 427,893 308,486 113,928 422,414 IV 313,616 102,786 416,402 319,182 104,680 423,862 312,914 108,041 420,955 V 291,213 88,828 380,041 302,712 91,656 394,368 308,390 98,773 407,163 VI 275,974 76,570 352,544 281,868 78,459 360,327 293,441 84,522 377,963 VII 250,008 65,436 315,444 261,267 67,457 328,724 265,167 73,289 338,456 VIII 226,221 56,647 282,868 235,698 58,043 293,741 245,270 62,100 307,370 IX 208,452 48,161 256,613 211,203 48,901 260,104 220,385 51,392 271,777 X 188,148 39,718 227,866 192,947 40,052 232,999 195,395 43,144 238,539 XI 288,597 59,310 347,907 312,562 60,346 372,908 273,187 60,151 333,338 XII Science 21,913 4,062 25,975 14,663 3,606 18,269 16,407 3,059 19,466 XII Commerce 20,916 4,634 25,550 17,635 4,532 22,167 18,955 4,322 23,277 XII Art 33,910 6,281 40,191 24,272 5,918 30,190 32,368 5,835 38,203 XIII Science 26,815 5,739 32,554 30,928 5,785 36,713 24,483 5,774 30,257 XIII Commerce 19,876 4,546 24,422 24,963 4,777 29,740 25,316 5,945 31,261 XIII Art 34,507 5,643 40,150 38,621 5,687 44,308 36,682 7,421 44,103 Total 3,149,338 908,477 4,057,815 3,191,001 920,271 4,111,272 3,175,923 959,191 4,135,114 Source: School censuses. 130 Table 2-3. Schools by Enrollment Size, 1991 Percentage No. of pupils No. of schools of schools 0-50 899 9 51-100 1,219 13 101-200 1,986 20 201-500 3,120 31 501-1,000 1,753 18 1,001-1,500 582 6 1,501-2,000 198 2 More than 2,000 169 2 Note: Percentages may not add up to 100 due to rounding. Source: MOEHE, School Census. 131 Table 2-4. Schools by Type and Years Taught, Selected Years Number of schools Percentage change Type 1987 1989 1991 1987-1991 1AB 469 492 513 +9.4 iC 1,310 1,372 1,510 +15.3 2 3,837 3,511 3,581 -7.0 3 4,377 4,430 4,430 +1.1 No. of schools Percentage No. of schools Percentage Percentage change Years 1987 sharea 1991 share 1987-91 I-V 2,063 20.3 2,885 29.1 +40 I-VIII 2,314 22.8 1,441 14.5 -38 I-XI 3,496 34.4 3,586 36.1 +2 I-XIm 1,712 16.9 1,615 16.3 -5 VI-XI 39 0.4 39 0.4 0 VI-XIII 536 5.3 343 3.4 -37 Total 10,160 9,909b -2.5 a. Percentages do not add up to 100 due to rounding. b. Total varies slightly according to sources used. Source: MOEHE; World Bank (1989, annex 32); Marga Institute (1992); MOEHE; School Census (1991); NIE (1989). 132 Table 2-5. Number of Schools, Teachers, and Pupils, Selected Years Year No. of schools No. of pupils No. of teachers Pupil:teacher ratios 1947 5,915 1,025,836 28,210 36.3 1953 6,731 1,564,848 45,335 34.5 1963 9,327 2,460,654 81,211 30.2 1971 9,646 2,689,638 94,583 28.4 1981 9,521 3,369,964 131,656 25.5 1991 9,909 4,135,000 170,735 24.2 Source: Gunawardena (1987); MOEHE School Census All Schools Year No. of schools No. of pupils No. of teachers Pupil:teacher ratios 1991 10,520 4,258,697 177,231 24.0 1992 10,588 4,286,275 182,756 23.5 1993 10,706 4,302,778 194,039 22.2 133 Table 2-6. Enrollments by Level of Education, 1985 and 1991 Thousands of pupils Percentage Level 1985 1991 growth Primary (I-V) 1.898 1.081 9.6 Lower secondary (VI-VIII) 0.851 1.024 20.3 Secondary (IX-XI) 0.758 0.844 11.2 Upper secondary (XII-XIII) 0.133 0.186 39.8 Total 3.640 4.135 13.6 Source: MOEHE School Census. Table 2-7. Pupil Intake in Government Schools by Gender, 1985 and 1991 (number of pupils) Percentage growth 1985 1991 1985-91 Schoo Boys Girls Total Boys Girls Total Total Girls 1 year I 189,784 182,321 372,015 198,326 189,989 388,315 4.3 4.2 VI 147,027 145,240 292,262 178,709 176,518 355,227 21.5 21.5 IX 113,504 120,441 233,945 129,681 135,632 265,313 13.4 12.6 XII 20,790 38,761 59,551 33,755 47,077 80,832 35.7 21.4 Source: MOEHE data. 134 Table 2-8. Enrollment Projections for General Education Level and With and Without Declines in Repetition Rates, Selected Years (millions of pupils) Percentage change Year/level 1991 1996 2000 1991-2000 I 0.410 - 0.344 -16 I-V 2.081 - 1.797 -13 VI-VII 1.024 - 0.975 -5 XI-XI 0.844 - 0.975 +16 XII-XIII 0.182 - 0.215 +18 Without declines Primary 3,561 3,663 3,535 - Secondary 4,482 5,346 5,382 - A/L 436 545 593 - Total general education 8,478 9,554 9,510 - With declines Primary 3,561 3,515 3,387 - Secondary 4,482 5,265 5,142 - A/L 436 436 474 - Total general education 8,478 9,216 9,003 - - Not available. Note: "Decline" means a hypothetical progressive reduction in repetition rates from 1991 to halve them by 2000. Source: Mission estimates 135 Table 2-9. Promotion, Repetition, and Dropout Rates, 1991 (percent) Promotion Repetition Dropout Year Boys Girls Boys Girls Boys Girls I 93.5 95.1 6.2 4.6 0.3 0.3 II 89.1 91.8 9.9 7.0 1.0 1.2 III 87.5 90.7 10.2 7.2 2.3 2.1 IV 86.2 89.9 10.5 6.9 3.3 3.2 V 86.3 90.5 8.9 6.0 4.8 3.5 VI 85.8 90.5 7.8 4.8 6.4 4.7 VII 87.0 91.3 6.0 4.0 7.0 4.7 VIII 87.0 91.0 4.2 2.9 8.8 6.1 IX 96.1 90.3 2.9 2.9 1.0 6.8 X 97.9 98.4 1.7 1.2 0.4 0.4 XI 30.2 20.4 30.3 40.1 39.5 39.5 XII Science 89.1 89.8 2.4 1.7 8.5 8.5 XII Arts 90.3 89.3 1.2 2.2 8.5 8.5 XII Commerce 91.0 90.4 0.5 1.1 8.5 8.5 XIII Science 26.5 22.9 34.0 37.6 39.5 39.5 XIII Arts 21.4 21.0 39.1 39.5 39.5 39.5 XIII Commerce 24.8 23.2 35.7 37.3 39.5 39.5 Source: MOEHE. 136 Table 2-10. Promotion, Repetition, and Dropout Rates by Gender, 1991 (percent) Year Promotion Repetition Dropout Boys I 93.5 6.2 0.3 II 89.1 9.9 1.0 I 87.5 10.2 2.3 IV 86.2 10.5 3.3 V 86.3 8.9 4.8 VI 85.8 7.8 6.4 VII 87.0 6.0 7.0 VIII 87.0 4.2 8.8 IX 96.1 2.9 1.0 X 97.9 1.7 0.4 XI 30.8 30.3 39.5 XII Science 89.1 2.4 8.5 XII Arts 90.3 1.2 8.5 XII Commerce 91.0 0.5 8.5 XIII Science 26.5 34.0 39.5 XIII Arts 21.4 39.1 39.5 XIII Commerce 24.8 35.7 39.5 Girls I 95.1 4.6 0.3 II 91.8 7.0 1.2 111 90.7 7.2 2.1 IV 89.9 6.9 3.5 V 90.5 6.0 3.5 VI 90.5 4.8 4.7 VII 91.3 4.0 4.7 VIII 91.0 2.9 6.1 IX 90.3 2.9 6.8 X 98.4 1.2 0.4 XI 20.4 40.1 39.5 XII Science 89.8 1.7 8.5 XII Arts 89.3 2.2 8.5 XII Commerce 91.4 1.1 8.5 XIII Science 22.9 37.6 39.5 XIII Arts 21.0 39.5 39.5 XIII Commerce 23.2 35.3 39.5 Source: MOEHE data. 137 Figure 2-2. Career Ladder for Educational Personnel, 1991 Sri Lanka Education Administrative Service Director Chief Education Officer Education Officer Assistant Education Officer Principals' Service Principal Grade 1 (school types 1AB, National) Principal Grade 2 Teaching Service Graduate Principal Grade 3 Trained Trainee Source: Public Service Commission. 138 Table 2-11. Number of Pupils and Teachers and Pupil-Teacher Ratios by Level, 1985 and 1991 No. of pupils No. of teachers Pupil-teacher ratio Percentage growth of Percentage Level 1985 1991 1985 1991 teachers 1985 1991 growth Primary (I-V) 1,898,000 2,081,000 66,167 66,980 9.6 29 31.1 1.2 Secondary (VI-XI) 1,608,000 1,867,000 63,612 88,675 16.1 25 21.1 39.4 Upper Secondary (XII-XIII) 133,000 186,000 12,461 15,080 39.8 10.7 12.4 21.1 All levels 3,640,000 4,135,000 142,240 170,735 13.6 25.6 24.2 20.0 Source: MOEHE School censuses. 139 Table 2-12. Teachers' and Education Administrative Service Salaries (1993) Teachers Annual Salary Scales (SL Rs) Uncertified Teachers with 3 subjects at GCE (AIL) Examination; Uncertified teachers with GCE (O/L); Holders of the Intermediate Certificates of the University Qualifying Examination in Art/Science, London Inter/ Art/Science; Home Science National Diploma Certificate Teachers (Polytechnic Institute Dehiwala, Maharagama Teachers College and Technical Colleges); Holders of the Teachers Certificate English/Sinhalese/Tamil 24,120/-14x660-6x780-38,040 Certified art, dancing, music teachers; Physical Training Instructors 27,420/-9x660-8x780-39,600 Junior Instructors in Teachers Colleges Junior University Diploma Holders in Science/Mathematics of the Open University of Sri Lanka, Diploma in Science/Mathematics 30,060/-5x660-1 1x78041,940 Trained Teachers (Sinhala/Tamil/English Specialist; Instructors in Teacher Colleges 32,520/-10x780-6x1200-47,520 New Grade l Principals (Non-S.L.E.A.S.); Senior Instructors in Teacher Colleges 35,640/-6x780-9x1200-51,120 Holders of a General Degree; Holders of the Four Year Commerce Diploma Certificate of a recognized Technical College or Polytechnic Institute; Higher National Diploma in Education Management of the Open University 37,200/-4x780-10x1200-1x560 of Sri Lanka 53,880 Sri Lanka Educational Administrative Service; Class M (those who have not obtained teaching qualifications); General Degree Holders with the Post-Graduate Diploma in Education; Honours Graduates; Graduates with Science/Mathematics/English/Education/ Agriculture; New Grade I Principal (Non- S.L.E.A.S.); Senior Training Masters of 39,540/-1x780-10x1200-3x Teacher Colleges 1560-57,000 Honours Graduates with the Post Graduate Diploma in Education 42,720/-8x1200-10x1560-67,920 Sri Lanka Educational Administrative Service: Class III 49,200/-15x1560-72,600 Class II 74,400/-7x3000-95,400 Class I 95,400/-10x4800-143,400 140 Table 2-13. Teachers in Government Schools by Qualifications and Gender, 1989 Percentage of Teacher type Men Women Total total teachers Graduate teachers (trained and untrained) 16,422 22,658 39,080 27.07 Nongraduate teachers Trained 30,035 49,657 79,692 55.19 Uncertificated 5,420 12,362 17,782 12.32 Certificated 2,115 3,867 5,982 4.14 University dipohna 126 168 294 0.02 Other 618 940 1,558 1.08 Total 54,736 89,652 144,388 100.00 Source: MOEHE School Census (Provisional) Report (1989). 141 Table 2-14. Teachers in Government Schools by Qualifications and Subject, 1989-91 1989 1990 1991 No. of Percentage No. of Percentage No. of Percentage Percentage Qualification and subject teachers of teachers teachers of teachers teachers of teachers change Graduates of which: 39,438 27.00 40,035 22.50 39,412 23.00 -0.6 Science 3,225 3,171 3,204 Mathematics and arts subjects 735 732 699 Social sciences, music, University diploma 222 0.10 210 0.01 192 0.10 -13.5 Science and mathematics 222 210 192 Trained of which: 82,065 56.00 84,336 47.00 76,195 English 9,552 10,363 9,790 Mathematics 7,521 7,856 8,053 Science 7,724 8,345 8,743 Primary education 43,655 43,548 35,839 Certificated of which: 5,869 4.00 7,333 4.00 7,432 4.00 +26.0 Sinhala/Tamil/English 1,373 1,422 2,272 Science and mathematics 1,522 1,309 895 OIL and AIL 18,008 12.00 33,064 18.50 46,544 27.00 +158.0 Science and mathematics 2,620 3,158 4,325 English 5,330 6,177 6,904 Primary education 7,558 14,901 21,955 Other 2,500 3,828 13,360 Note: Figures are prior to 1992-93 recruitments. Source: Public Service Commission. Table 2-15. Teachers by Education Levels, 1985-1991 (number of teachers) 198 1986 1987 1988 1989 1990 1991 Grom rare 1915 91 (S) Catgery Men Wooler Total Mer Women Total Me Women Total Men Women Total Men Wata Tatl Men Women Total Men Women Toral Men Woe Total Graduates with poigradAe sorvaes degrees in education plus pmstpaduate educa o dploma - - - - - - - - - - - - - - - - - 952 - - - - - - Gradiuaes with postgrahae dgree in other feld with poslgraduae ediation diploma - - - - - - - - - - - - - - - - 1.421 - - - - - - Oraduats with posagraduate education dplom and aBED &pee - - - - - - - - - - - - - - 5.900 - - 4.208 - - 5.672 - - - Grauaaes with TTC o eduate salary scalk - - - - - - - - - - - - - - - - - 2.993 - - 1,687 - - - Graduates with postgraduse degree in eduaion - - - - - - - - - - - - - - 403 - - - - - - - - - Grarlames witb pomipaduat degree n ashefi - - - - - - - - - - - - - - - 1.123 - - - - - - Nontrained agriuam - - - - - - - - - - - - - 22.118 - - 2t,793 - - 22,245 - - - Gradints am on grahmne scale, icludig Wamed grauatm - - - - - - - - - - - - - - 2,942 - - 3,722 - - 4.567 - - TOal - - - - - - - - - - - - - - 31.363 - - 36.219 - - 34,171 - - - rimary 19.052 47.113 66.167 18.956 46.931 65,887 15,309 42.311 57.620 14,624 41.394 56.018 14.796 43.439 58.235 16,193 55.265 714538 13.818 53.162 66,980 -521 203 020 Senary 29,893 33,719 63.612 29.799 34.077 63,876 32.252 37.290 69,542 32.694 38.970 71.664 33.220 41.058 74.278 38.885 53,00 91,885 35.724 S2.951 88671 301 781 569 Collegste 6.249 6.212 12.461 6,702 6.933 13,635 6,565 6.746 13.311 6.614 6.872 13.486 7.162 7.299 14461 7.368 7.622 14.990 7.281 7.799 IS.080 258 386 323 Tatal IS.194 87.046 142.240 SSt.16 87.941 143.399 54.417 86.347 140.473 S3.932 V.236 141.168 55.178 91.796 146.974 62.446 115887 178333 16.823 113.912 170.735 049 4$9 309 - Not available. Source: MOEHE. 143 Table 2-16. Pre-Service and In-Service Teacher Training in Colleges of Education by Area of Subject Specialization and Gender, 1989-91 (number of trainees) 1989 1990 1991 Subject Men Women Total Men Women Total Men Women Total Pre-service Primary education 239 383 622 461 649 1,110 631 817 1,448 Science 175 197 372 178 171 349 278 277 555 Mathematics 83 124 207 61 115 176 116 166 282 Buddhism 59 0 59 71 0 71 168 0 168 Physical education 50 78 128 59 73 132 70 80 150 English 53 188 241 148 328 476 137 434 571 Home science 0 82 82 0 106 106 0 166 166 Total 659 1,052 1,711 978 1,442 2,420 1,400 1,940 3,340 In-service Primary education 401 1,109 1,510 471 975 1,446 472 1,244 1,716 Science 194 264 458 269 339 608 269 483 752 Mathematics 230 196 426 291 253 544 244 235 479 Agriculture 52 25 77 104 73 177 180 103 283 Home science 0 252 252 0 350 350 0 450 450 Buddhism 95 30 125 73 22 95 92 21 113 Hinduism 0 0 0 0 0 0 20 74 94 Islam 40 68 108 27 16 43 46 29 75 Christianity (RC) 9 25 34 40 92 132 14 55 69 Sinhala 27 13 40 67 89 156 52 88 140 Art 35 43 78 25 31 56 35 38 73 Dancing 12 80 92 10 43 53 18 63 81 Music 33 113 146 20 51 71 22 70 92 Arabic 10 2 12 6 1 7 4 0 4 Special education 90 30 120 110 31 141 97 40 137 English 110 237 347 271 447 718 384 626 1,010 Total 1,338 2,487 3,825 1,784 2,813 4,597 1,949 3,619 5,568 Source: MOEHE. 144 Table 2-17. Teacher Training Provision Institution Training provided Open University Professional postgraduate training for graduate teachers Faculties and departments of Professional postgraduate training for graduate education of the universities teachers of Colombo, Jaffna, Peredeniya Professional In-Service Initial in-service training for untrained nongraduates English Teacher Training Programme (PRINSETT) of the NIE Short-term in-service "Repair and maintenance" type of training for untrained education courses, seminars, teachers and updating and orientation for all categories of and workshops conducted by teachers according to needs the NIE or by provincial ministries of education with NIE approval Colleges of education Pre-service training for nongraduate student teachers Teacher training colleges Initial in-service training for untrained graduates and trainee teachers Distance Education Initial in-service training for untrained graduates and Department of the NIE trainee teachers Teacher Education 0 Professional postgraduate training for graduate teachers Department of the NIE 0 B.Ed. for nongraduate trained teachers Aesthetic Education Initial training for untrained nongraduates in service Department of the NIE Higher Institute of English Various English courses for teachers Education of the NIE NIE National Institute of Education. Source: MOEHE. 145 Table 2-18. Cost and Number of Free Books Sent to all Educational Divisions, 1992 Education division No. of books Cost (SL Rs millions) Ampara 265,219 5.794 Anuradhapura 867,993 19.740 Bandarawela 802,721 18.276 Batticalo 487,784 12.840 Chilaw 630,614 14.415 Colombo 1,683,241 39.136 Galle 921,211 20.315 Gampaha 1,438,713 32.589 Jaffnal 1,054,223 31.184 Kalmunai 515,387 13.241 Kalutara 898,234 20.414 Kandy 1,146,882 26.769 Kegalle 688,519 15.454 Kilinochchi 139,092 3.759 Kurunegala 1,325,694 29.582 Mannara 66,357 1.851 Matale 427,169 9.729 Matara 740,583 16.401 Monaragala 443,959 9.742 Mulaitiwel 102,734 3.746 Nuwara Eliya 661,183 15.600 Polonnaruwa 390,801 8.770 Ratnapura 919,468 20.373 Tangalle 567,197 12.454 Trincomallee 340,710 8.618 Vavuniya 103,573 2.712 Total 17,629,261 413.988 a. Distribution delayed. Source: Educational Publications Department, MOEHE. 146 Table 2-19. Examples of Prices of Textbooks, Workbooks, and Teachers' Guides, 1991 (SL Rs) Average price Sinhala Teachers' English of textbook Year Science Mathamatics textbook guide Textbook Workbook and workbook I n.a. n.a. 17.00 10.50 n.a. n.a. n.a. II n.a. n.a. 17.00 14.50 n.a. n.a. n.a. A n.a. 42.75 31.75 17.75 45.75 n.a. 40.00 IV n.a. 50.50 15.25 10.50 9.00 28.50 35.81 V n.a. 46.00 15.75 23.00 14.25 10.25 21.56 VI 21.50 34.75 15.25 27.25 16.50 18.00 21.20 VII 25.00 57.00 17.50 24.00 40.25 n.a. 34.93 VIII 32.50 43.25 24.00 23.00 38.25 n.a. 34.50 DC 43.00 40.50 17.50 28.75 25.50 n.a. 31.62 X 53.75 41.50 18.00 23.75 38.25 n.a. 37.87 XI 42.25 46.50 18.25 30.75 33.50 n.a. 35.12 n.a. Not applicable. Source: EPD. Table 2-20. OIL Performance, 1991 First time candidates Repeaters Private Boys Girls Boys Girls Boys Girls Category No. Percent No. Percent No. Percent No. Percent No. Percent No. Percent Candidates sitting 95,503 18.1 107,294 20.3 41,560 7.9 54,855 10.4 66,504 12.6 81,770 15.5 Absentees 4,807 0.9 3,889 0.7 6,901 1.3 9,145 1.7 29,954 5.7 25,909 4.9 Qualified for A/L 19,792 4.4 23,896 5.3 6,702 1.5 8,016 1.8 4,912 1.1 4,336 1.0 Passes in 6 or more subjects with 3 or more credits 24,628 5.5 31,591 7.1 9,338 2.1 11,539 2.6 6,271 1.4 6,056 1.4 Passed in 6 or more subjects 30,402 6.8 35,952 8.0 12,618 2.8 14,128 3.2 8,892 2.0 8,242 1.4 Passed in 8 subjects 11,766 2.6 16,123 3.6 1,962 0.4 2,682 0.6 1,147 0.3 988 0.2 Passed in 7 subjects 9,127 2.0 9,897 2.2 4,330 1.0 4,806 1.1 3.071 0.7 2,697 0.6 . Passed in 6 subjects 9,504 2.1 9,924 2.2 6,325 1.4 6,639 1.5 4,674 1.0 4,557 1.0 Passed in 5 subjects 9,769 2.2 11,170 2.5 6,454 1.4 8,285 1.9 5,564 1.2 6,478 1.4 Passed in 4 subjects 9,256 2.1 13,143 2.9 5,563 1.2 8,382 1.9 5,277 1.2 7,247 1.6 Passed in 3 subjects 8,928 2.0 14,911 3.3 4,362 1.0 7,023 1.6 5,453 1.2 6,860 1.5 Passed in 2 subjects 9,400 2.1 11,751 2.6 4,341 1.0 6,387 1.4 8,307 1.9 9,949 2.2 Passed in I subject 11,710 2.6 10,361 2.3 4,951 1.1 6,718 1.5 20,138 4.5 26,345 5.9 Failures 14,854 3.3 9,574 2.1 2,548 0.6 3,299 0.7 7,312 1.6 11,736 2.6 Continued Table 2-20. Continued Totals Boys Girls All Category No. Percent No. Percent No. Percent Comments Candidates sitting 203,567 38.5 243,919 46.2 447,486 84.7 No. applied 528,091 Absentees 41,662 7.9 38,943 7.4 80,605 15.3 Qualified for A/L 31,406 7.0 36,248 8.1 67,654 15.1 Top performers out of 6 passes and 3 credits Passes in 6 or more subjects with 3 or more credits 40,237 9.0 49,186 11.0 89,423 20.0 Can qualify for A/L Passed in 6 or more subjects 51,912 11.6 58,322 13.0 110,234 24.6 Can fail to qualify Passed in 8 subjects 14,875 3.3 19,793 4.4 34,668 7.7 Can fail to qualify Passed in 7 subjects 16,528 3.7 17,400 3.9 33,928 7.6 Can fail to qualify Passed in 6 subjects 20,503 4.6 21,120 4.7 41,623 9.3 Can fail to qualify Passed in 5 subjects 21,787 4.9 25,933 5.8 47,720 10.7 Cannot qualify Passed in 4 subjects 20,096 4.5 28,772 6.4 48,868 10.9 Cannot qualify Passed in 3 subjects 18,743 4.2 28,794 6.4 47,537 10.6 Cannot qualify Passed in 2 subjects 22,048 4.9 28,087 6.3 50,135 11.2 Cannot qualify Passed in I subject 36,799 8.2 43,424 9.7 80,223 17.9 Cannot qualify Failures 24,714 5.5 24,609 5.5 49,323 11.0 Note: Denominator used to calculate percentages of number sat and number absent is total number of applicants. Denominator used to calculate percentages of other groups is total number sat. Percentages shown relate to total number of students applying. Source: Examinations Department, MOEHE. 149 Table 2.21 O/L Performance 1992 First Timers Repeaters Private Boys Girls Boys Girls Boys Girls No Percent No Percent No Percent No Percent No Percent No Percent Candidates sitting 99,133 19.0 109,102 20.9 42,873 8.2 55,700 10.7 68,175 13.0 78,926 15.1 Absentees 4.074 0.8 3,354 0.6 4,158 0.8 4,475 0.9 29,450 5.6 23,453 4.5 Qualified for A/L 23,152 5.1 28,156 6.2 7,665 1.7 9,104 2.0 5,473 1.2 4,925 1.1 Passed in 6 or more 6,258 5.8 32,553 7.2 8,371 1.8 9,481 2.1 5,796 1.3 4,899 1.1 subjects with 3 or more credits Passed in 6 or more subjects 25,408 5.6 29,209 6.4 9,250 2.0 9,471 2.1 6,491 1.4 5,332 1.2 Passed in 8 subjects 12.757 2.8 16,288 3.6 1,818 0.4 1,972 0.4 1,101 0.2 835 0.2 Passed in 7 subjects 9,536 2.1 9,974 2.2 4,165 0.9 3,851 0.8 2,875 0.6 2,092 0.5 Passed in 6 subjects 9,077 2.0 9,774 2.2 5,691 1.3 5,905 1.3 4,300 0.9 3,824 0.8 Passed in 5 subjects 10,047 2.2 12,835 2.8 6,222 1.4 8,277 1.8 5,204 1.1 5,754 1.3 Passed in 4 subjects 10,748 2.4 14,923 3.3 5,754 1.3 8,567 1.9 5,483 1.2 7,101 1.6 Passed in 3 subjects 9,352 2.1 14,003 3.1 4,307 0.9 7,095 1.6 5,473 1.2 6.926 1.5 Passed in 2 subjects 9,469 2.1 11,291 2.5 4,638 1.0 6,547 1.4 8,442 1.9 9,835 2.2 Passed in I subject 11,909 2.6 11,030 2.4 6,365 1.4 8,864 2.0 22,415 4.9 26,702 5.9 Failures 14,914 3.3 8,567 1.9 3,022 0.7 3,706 0.8 7,306 1.6 11,323 2.5 Totals Boys Girls All No Percent No Percent No Percent Candidates Sitting 210.171 40.2 243,728 46.6 435,899 86.8 Absentees 37,682 7.2 31,282 6.0 68,964 13.2 Qualified for A/L 36,290 8.0 42,215 9.3 78,505 17.3 Passed in 6 or more 40,425 8.9 46,933 10.3 87,358 19.2 subjects with 3 or more credits Passed in 6 or more 41,149 9.1 44,012 9.7 85,161 18.8 subjects with first language & maths Passed in 8 subjects 15,676 3.5 19,095 4.2 34,771 7.7 Passed in 7 subjects 16,576 3.7 15,917 3.5 32,493 7.2 Passed in 6 subjects 19.068 4.2 19,503 4.3 38.571 8.5 Passed in 5 subjects 21,473 4.7 26,866 5.9 48,339 10.6 Passed in 4 subjects 21,985 4.8 30,591 6.7 52,576 11.6 Passed in 3 subjects 19,132 4.2 28,024 6.2 47,156 11.4 Passed in 2 subjects 22,549 5.0 27,673 6.1 50,222 11.1 Passed in I subject 40,689 9 0 46,596 10.3 87,285 19.2 Failures 25,242 5.6 23,596 5.2 48,838 10.8 Source: MOEHE, Examinations Department 150 Table 2-22. Candidate Performance at A/L by Language of Instruction, 1992 Category Sinhala Tamil English Total Candidates Applied 128,677 29,436 718 Schools Presenting Candidates 1,682 359 0 Applied (First-time Candidates) 58,703 10,207 9 Applied (Repeaters) 29,114 5,250 1 Applied (Private Candidates) 40,860 13,979 708 Sat (First timers) 54,883 8,936 7 Sat (Repeaters) 25,579 4,029 1 Sat (Private) 29,092 8,638 405 Passed in 3 or 4 (First Time Candidates) 34,298 6,271 3 Passed in 3 or 4 (Repeaters) 18,352 3,034 1 Passed in 3 or 4 (Private) 15,548 4,516 56 Passed in 3 or 4 (Medicine) 10,130 1,841 22 Passed in 3 or 4 (Engineering) 5,020 1,197 7 Passed in 3 or 4 (Commerce) 19,715 4,685 12 Passed in 3 or 4 (Arts) 33,533 6,098 19 Qualified for University (Medicine) 6,611 1,215 16 Qualified for University (Engineering) 3,004 752 4 Qualified for University (Commerce) 13,444 3,565 4 Qualified for University (Arts) 22,439 4,110 6 Source: MOEHE, Examination Department. 151 C. Regional Comparisons of Participation in Secondary Education 1. In addressing the issue of the appropriate configuration for the school pyramid, it is interesting to compare regional countries in terms of length and levels of the school system and the enrollments at each level. Such a comparison may provide some clues to guide strategy on what proportion of pupils should participate in secondary and upper secondary levels to achieve the optimum human resource development for the country's socioeconomic health. 2. In 1989, Sn Lanka has a much higher percentage of the age group (74 percent) in secondary education that India (43 percent) and Pakistan (20 percent), both of which had only slightly lower GNP per capita that Sn Lanka at US$470, and one year less of pnmary and secondary schooling. There fore, it appears that Sri Lanka has not been able to capitalize on high secondary level participation rates to push ahead economically relative to South Asian comparators. We can only speculate why, but the reasons may have to do with inadequate quality and irrelevance of Sn Lankan education for productive employment purposes 3. However, some much ncher countries have suffered from human resources constraints on their development due to low educational participation. Indonesia, with about the same GNP per capita as Sn Lanka, but growing, has only 40 percent enrolled in lower secondary (years VII-IX) and 20 percent in years X-XII. That country is currently making a big push to enhance overall quality, including that of prnmary education, as the foundation of the system, as well as secondary science and English, but progress is uneven across the islands. Thailand, with three time the GNP of Sri Lanka, has less that 30 percent in secondary school (years VII-X) and about 2 percent in upper secondary (years XI- XII) Participation is extremely low after prnmary school, though quality is unproving after a turty-year effort. IN both countries, as a consequence of low secondary participation and poor educational quality, scarcities of well-educated, skilled labor are major constraints on economic growth. 4. Both Singapore and the Republic of Korea are newly indusmalizing countries and have relied on human resource development to achieve high per capita incomes. They have succeeded in dus stnategy, even though the shape of their school pyramids as different. Singapore has a wide participation (70 percent) though primary and secondary school (ten years), but only 20 percent um upper secondary school (years XI and XII), so the pyramid is wider at the apex. both countnes have high quality of education in terms of pupil achievement, as shown by recent international surveys of pupil progress. 5. Malaysia, with five times the GNP of Sn Lanka, has made remarkable and rapid economic progress. It has about the same shape educational pyramid as Sri Lanka, with 70 percent um lower secondary up to year IX, about 40 percent is secondary (years X-XI) and 8 percent in upper secondary (years XII-XM). The reasons for the country's success may be partly to do with its abundant natural resources and a long tradition of fairly high educational participation. But the definitive factor in why that county is succeeding econonically, while Sri Lanka has not yet begun to do so mn a sustained fashion, may be that Malaysia has invested heavily over twenty years in quality enhancement, curnculum, teacher training, school management traunng and books and reading materials. 6. The Philippines by contrast is still poor (GNP per capita of US$730). Though it has a long tradition of wide access to schooling in a 5+5 system, with over 70 percent enrolling in secondary education (years V-X), it is tom by internal strife and political pressures. Only in the last decade has the country been able seriously to begin addressing quality enhancement and the results are evident in the new curriculum, but not yet in classroom implementation.' 7. As for access to higher education, the 2 percent of the age group that enters higher education in Sn Lanka is lower that the average (4 percent) for the Asia region However, Sri Lanka has attempted until now to provide only high quality higher education for the few in a few istituions, while many countries have taken a path toward a two-ner system of a few high quality msttuions and a larger number of lesser quality. With the development of the affiliated university colleges, Sn Lanka may intend to step on the same path or, alternatively, may plan that the affiliated university colleges provide high quality, but different, higher education, rather in the fashion of the United States of America's Land Grant colleges of the past or. possibly, the polytechmcs in the United Kingdom in the 1970s and 1980s 1. By 1988 the richest Organization for Economic Co-operation and Development countries (Japan, the United States and the former Federal Republic of Germany, Belgium, and the Netherlands) has reached the point where nearly 85 percent of 18-year- olds were mn full-time education, but France and the United Kingdom were struggling. France has about 70 percent and the United Kingdom only 35 percent. 2. In 1992, almost all polytechnics became universities. 152 ANNEX 3 HIGHER EDUCATION AND RESEARCH A. Miscellaneous Tables Table 3-1. Resource Allocations for Education and Training, 1971 and 1989 (SL Rs thousands) Other ministries share of resources for education and MOEHE and MOHE Other ministries training Year allocation allocation Total (%) 1971 678 21.0 699 3 1989 5,191 1,214.7 6,399 19 Source: Marga Institute. 153 Table 3-2. Number of Students Enrolled by Univesity and Faculty, 1986/87-1990/91 Fmauy HumMaUs AsWur. Amdac SOal SaM, Manu. Enan ag. Sawm= Madan, Vanmary Quanwsfy luwtnto yGst Ar, Mam gn Law COWm TecbAoftv Apphad Seom Dooa Sae Agnault Madsa Surveymg Ta."l Umvermyof 1986/1987 1,497 - - 1,000 574 805 555 359 - 4,630 Paa y& 1987/1988 1.855 - - 1.294 717 909 654 165 - 5.594 1988/1989 2.283 - - 1.535 895 1029 842 233 - 6,817 1990/1991 1,675 - - 1.284 872 1356 691 270 - 6.148 Umargaty of 1986/1987 1.606 571 - - 722 997 - - - 3.896 Columbo 1987/1988 2.106 769 - - 994 1,167 - - - 5.036 198811989 2.642 970 - - 1.260 1,336 - - - 6.208 199011991 2.190 859 - - 730 1.124 - - - 4,903 UmoUy of 198611987 2.900 - - - 381 - - - - 3.281 Sn Jya rdampur 1987/1988 3.602 - - - 511 - - - - 4.113 1988/1989 4.362 - - - 667 - - - - 5,029 1990/1991 4.119 - - - 732 - - - - 4,851 Umveraty of 1986/1987 2.016 - - - 488 - - - - 2.504 Kclsmya 198711988 2,449 - - - 676 - - - 3.125 1988/1989 2.908 - - - 714 36 - - - 3.829 1990/1991 1,684 - - - - - - - - 2.434 Umvarfty of 1986/1987 - - - 914 - - - - 152 1.066 Matum 1987/1988 - - - 1.199 - - - - 218 1.417 1988/1989 - - - 1.520 - - - - 283 1.805 1990/1991 - - - 1.472 - - - - 270 1,742 Uzmvemty of 1986/1987 1.581 - - - 591 392 - - - 2.564 J.ff=. 1987/1988 1.542 - - - 612 335 - - - 2.309 1988/1989 1.549 - - - 572 346 - - - 2,467 1990/1991 Unweretty of 1986/1987 855 - - - 583 503 199 - - 2.140 RbM 1987/1988 1.220 - - - 791 612 198 - - 2821 1988/1989 1,543 - - - 1.028 613 256 - - 3.440 1990/1991 1,716 - - - 1.017 676 262 - - 3.671 EaMMr Umverty 1986/1987 - - - - 123 - 56 - - 179 1987/1988 101 - - - 162 - 63 - - 326 1988/1989 180 - - - 197 - 99 - - 476 19901l991 66 - - - 123 - 38 - - 227 Opn Umverty 1988/1989 - 2.158 - 63 2.089 - - - - 4.337 1989f1990 - 1.705 - 51 2,089 - - - 3.845 TOal 1986/1987 10.455 571 - 1.914 3.462 2,697 830 159 152 20.220 1987/1988 12.875 769 - 2493 4,463 3.043 915 165 218 24.941 1988/1989 15.467 970 - 3,055 5.333 3.360 1197 233 285 29,900 1990/1991 11.450 859 - 2.756 3,474 3.156 991 270 270 23.226 - Not offered. Source: University Grants Commission (UGC) statistics. 154 Table 3-3. Affiliated University Colleges No. of students Academic staff No. on board College Center Program of study Umversity enrolled establishment of management UVA Province Rahangala Agriculture/Plantation Peradeniya 20 10 10 Management Sri Jayawardenapura 125 English (E) Export Agriculture 20 Animal Science 5 North Central Anuradhapura English (E) Sri Jayawardenapura 68 32 10 Province Entrepreneurship and Small Business Management (S) 55 Hotel Management (E) 27 Tourism and culture (S) 55 Accountancy and Finance (S,T) 61 North Western Kuliyapitiya Home Science and Sri Jayawardenapura Province Nutrition (E) 94 34 10 Makandura Agriculture (E) Peradeniya 75 Northern Vavyniya Mathematical Peradeniya Province science (E,T) 19 22 9 English (E) 31 Accountancy and Finance (E,T) 41 Sabaragamuwa Belihuloya English (E) Sri Jayawardenapura 122 31 10 Province Travel and Tourism (E,S.T) 34 Accountancy and Finance (E,S,T) 69 Buttala Food Science and 10 Technology 25 24 English 46 Southern Niyagama Accountancy and 73 30 8 Province Fiance* (S) Entrepreneurship and Small Business Eastern Ampara Accountancy and 81 13 7 Province Finance (S) Tricomalle Accounting and Finance 38 9 8 English 41 Total 1.307 205 82 Note: Letters in parentheses in the programs of study column indicate the language of instruction: E = English, S = Sinhala, T = Tamil. * Course will commence shortly after obtaining approval from the senate of Ruhuna University. Source: University Grants Commission. 155 Table 3-4. Professional Institutions with Qualifying Equivalent Graduate Programs Chartered Institute of Management Accountants Chartered Institute of Marketing (UK) Institute of Bankers Sri Lanka Institute of Chartered Accountants Institute of Chartered Secretaries & Administrators Institute of Chemistry, Ceylon Institute of Engineers of Sri Lanka Institute of Personnel Management Institute of Printing Law College Sri Lanka Institute of Architects Sri Lanka Institute of Marketing Sri Lanka Library Association Table 3-5. Private Sector Higher Education Institutions Number of Registration and students Institution Link Qualificaton Duration tuition fees enrolled Institute of University of Houston, BS (Computing, Chemistry, 4 years Sri Lanka SL Rs 152,000-170,000 300 Technological Texas, U.S.A. Biological Sciences, + 1 year U.S.A. + US$14,000 Studies Engineering) BA (Business and related studies, Humanities, Arts) Informatic Manchester Metropolitan BSc (Computing) 4 years full time SL Rs 100,000 + 160 Institute University (formerly a Accreditation as an external in Sri Lanka of Computer polytechnic), U.K. college of MMU Studies Table 3-6. Allocation of the Government Grant Recurrent Expenditure, 1991 (SL Rs thousands) Expenditure Nonfaculty Expenditure based on cost at Total for for Total Alloction Alloction average basic rate of Specific costs Nonfaculty undergraduate postgraduate estimated recommended Income from for Institution facuity cost SL Rs 7,500 rate amount students students expenditure for 1991 other sources 1990 University of Pcradeniya 108.298 46.110 4 60 28.280 182,688 9,901 192.589 178,000 22,586 186.300 University of Colombo 59,768 36,772 - - 96.540 18,595 115.135 109.000 1,942 96,598 University of Sri Jayawardenapura 43,303 36.382 - - 79.685 1,617 81,302 76,000 2,328 60.647 University of Kelaniya 26,551 18.255 - - 44,806 1,058 45.864 55.000 831 61,087 University of Morstuwa 33,861 13,065 5 80 10.103 57.029 2.064 59,093 56,000 3,532 56,226 University of Rubuns 54.155 27,532 0 56 2,056 83.743 1,272 85,015 79,000 4,038 68.478 Eastern University 3,656 1.702 1 80 2,678 8,036 100 8.136 10,000 500 18,000 Open University 30.402 42,493 - - 72.895 - 72,895 40.000 24,706 38,000 Postgraduate Institute of Medicine 9,109 - - - - - 9.109 8,000 3,706 7,000 Postgraduate Institute of Agiculture . 4.722 - - - - - 4.722 4,500 650 3,000 Postgraduate Institute of Palo & Budhist Studies 4,290 - - - - - 4,290 4,000 186 1,700 Postgraduate Institute of Management 6,387 - - - - - 6,387 3,500 1,999 2,800 Postgraduate Institute of Archeology 26.514 - - - - - 26,514 4.000 2.302 1,800 Institute of Aesthetic Studies 16,637 - - - - - 16,637 14,000 350 12,500 Institute of Workers' Education 3,070 - - - - - 3.070 3,000 51 2,500 Institute of Indigenous Medicine 10.284 - - - - - 10,284 9.500 72 8,000 Institute ofComputer Technology 5,128 - - - - - 5.128 4,000 1,420 3,500 ON University of Jaffna* - - - - - - - 75,000 - - Univerhity Grants Commission 16,000 - - - - - 17,000 17,000 860 16,000 Contigencies and further allocation - - - - . - - 6.500 Total 136,199 44,195 2.678 80,931 100 184,172 203,000 36,802 114,800 - No allocation from government grant. * Tentative Note: Income from other sources is estimated by the institution. Source: UGC. 157 Table 3-7. University Recurrent Unit Costs for Undergraduate Students, 1986 and 1990 (SL Rs thousands) Regular universities 1986 1990 Management Studies 3,600 5,028 Law 3,600 1,955 Arts and Social Science 7,800 5,028 Science 17,100 13,577 Engineering 17,300 13,582 Medicine 20,700 17,527 Architecture 22,600 14,710 Veterinary Medicine 23,400 16,718 Agriculture 27,200 15,436 Open University Law 3,800 - Science 11,500 - Engineering Technology 11,500 - - Not available at the time of the mission. Source: UGC and Open University. Table 3-8. Recurrent Faculty Expenditure, 1987-89 (SL Rs thousands) Faculty Humanities, Architecture, Admin & Total Academic Social Science, Managment, Engineering, Science, Medicine, Veterinary Quantity Graduate other recurrent Instatuton year Arts. Management Law Commerce Technology Applied Science Dental Science Agriculture Medicuie Surveying school Exams nonacademic expenditure University of 1987 9,573 -- -- 10.389 8.951 12.430 7.092 2.080 -- -- 1.193 41.223 92.931 Peradeniya 1988 14,954 -- -- 11,750 9.874 15,657 8,467 2,839 -- -- 736 49,600 113.877 1989 22.462 -- -- 15.674 14.059 29.420 11,090 4.393 -- II 720 71,669 169.498 University of 1987 6.359 1.120 -- -- 9.968 10,833 -- -- -- 1.327 146 17,233 46.986 Columbo 1988 8,495 1,425 - -- 12.803 14,780 -- -- -- 835 98 21,460 59,896 1989 17.126 1,973 -- -- 17.834 25.650 -- -- -- 857 845 26.657 90.942 University of 1987 5,052 -- 2,422 -- 6,305 -- -- -- -- -- 1,593 10,337 25.709 Sri Jayawsrdenspurs 1988 8,475 -- 3,633 -- 7,043 -- -- -- -- 436 14.559 34.146 1989 10,798 -- 6,091 -- 9.673 -- -- -- -- -- 1,699 16.632 44,893 University of 1987 8,442 -- -- -- 5,485 -- -- -- -- -- 1,394 10.494 25,815 Kelanlys 1988 11.980 -- -- -- 8,259 -- -- -- -- -- 383 12,881 33,503 1989 18,718 -- -- -- 10,976 -- -- -- -- -- 966 17.328 47.988 University of 1987 -- -- -- 16.342 -- -- -- -- 2.988 -- 682 11.694 30.706 Moratuwa 1988 -- -- -- 20.973 -- -- -- -- 2,746 -- 644 14,874 39.237 1989 -- -- -- 26,222 -- -- -- -- 3,901 -- 738 17,750 48,611 t-n 00 University of 1987 6,512 -- -- -- 6,398 5,065 -- -- -- -- 729 9,077 27,781 Jaffns 1988 9,156 -- -- 8,616 7,326 -- -- -- -- 1,073 13,059 39.230 1989 14,259 -- -- -- 13,098 11.262 36 -- -- -- 1,861 20,435 60.951 University of 1987 2,549 -- -- 5.987 5.873 2,707 -- -- -- 736 12,750 30,602 Rubuna 1988 3,369 -- -- -- 10.147 7,829 3,358 -- -- -- 651 16.280 41,634 1989 4,810 -- -- -- 7.804 12,740 3.979 -- -- -- 549 18.089 47,971 Eastern University 1987 1 -- -- -- 1.985 -- 1.706 -- -- -- 254 3,354 7,300 1988 169 -- -- -- 2.710 -- 3.127 -- -- -- 299 4,694 10.999 1989 207 -- 512 -- 4,838 -- 4.162 -- -- 384 7,180 17.283 Open University 1987 3.977 -- -- -- 11,437 -- -- -- -- -- 5.204 13,084 33.702 1988 3,835 -- -- 7.107 7.298 -- -- -- -- -- 10,688 16,938 45,866 1989 4.450 -- -- 8.444 8,640 -- -- -- -- -- 12.814 19.267 53.615 Total 1987 42.465 1.120 2.422 26,731 56,516 34.201 11.505 2.080 2.988 1.327 11,931 129.246 322,532 1988 60.433 1.425 3.633 99,830 66,750 45,502 14.592 2.839 2.746 835 15,008 164.345 418.388 1989 92.830 1,973 6,603 30,340 86.922 79.072 19,267 4.393 3.001 868 20,576 215.007 561,752 - Not offered. Source: University Grants Commission (UGC) statistics. 159 Table 3-9. Unit Allocations, 1991 (SL Rs per student) Humanitntes, Architecture, Social Science, Science, Medicine, Engineering Veterinary Quantity Category Arts, Management Law Applied Science Dental Science Agriculture Technology Medicine Surveying Faculty costs 7,104 2,762 19,184 24,765 21,811 19,191 23,622 20,785 Administrative 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 costs Source: UGC. Table 3-10. A/L Marks of Candidates Admitted to and Rejected from University, 1988/89 Marks of candidates admitted Highest marks of Discipline Highest Lowest rejected candidates Agriculture 283 193 262 Architecture 270 190 224 Arts 322 214 238 Biological Sciences 279 182 248 Commerce 274 203 247 Dental Science 279 196 275 Engineering 376 185 265 Law 340 193 257 Management Studies 327 220 263 Medicine 353 199 279 Physical Science 315 180 219 Quantity Surveying 265 189 262 Vetinerary Science 278 195 271 Source: A.D.V. De S. Indraratne, Economics of Higher Education in Sri Lanka, Navrang (1992, table 6.1.62); UGC, Division of Planning and Research. 160 Table 3-11. Pass Rates for Selected Undergraduate Courses, 1988/89 Number admitted Number graduating Percentage University 1985/86 1988/89 passing University of Colombo Arts 549 366 66.7 Law 145 61 42.0 Medicine* 185 145 78.4 University of Peradeniya Arts 410 446 100+ Science 185 120 64.9 Medicine* 127 81 63.4 Dental Science* 73 63 86.3 Veterinary Medicine* 41 20 48.8 Agriculture 207 94 45.4 Engineering 249 124 49.8 University of Sri Jayawardenepura Arts 387 316 80.1 Commerce, Management, etc. 574 329 57.3 University of Kelaniya Science 234 117 50.0 University of Ruhuna Agriculture 67 34 50.8 Humanities, Social Science 281 146 52.0 Medicine* 102 68 66.8 Science 228 60 26.3 * Admitted 1984/85. Source: UGC and university statistics. 161 Table 3-12. Research Institutes not Affiliated with the Ministry of Education and Higher Education Ministry/department Research institute President's Office Institute of Fundamental Studies Plan Implementation Rural Development Labour and Social Welfare Division of Occupational Hygiene Local Government City Analyst Home Affairs Research Housing and Construction National Building and Research Organization Justice Government Analyst Plantation Coconut, Rubber, Tea Prisons Research in correction Finance Policy Studies Law Commission Research Agriculture, Food, and Cooperative Agriculture Agarian Research and Training Institute International Dambala (winged bean) Department of Export Agriculture National Aquatic Resources Agency Sugar, Veterinary Plant Genetics Resource Centre Central Agricultural Research Institute Women's Affairs and Health Medical National Institute of Health Ayurvedic Bandaranaiaka Ayurvedic Research Institute Science, Technology, and Industries Arthur C. Clarke Centre for Modem Technologies Ceylon Institute of Science and Industrial Research National Engineering R&D Centre National Resources, Energy and Science Authority Atomic Energy Authority Geological and Mines Bureau Sri Lanka Standards Institute National Institute of Business Management Department of Meterology Tourism and Industry Industrial Development Board Environment Central Environmental Authority 162 B. The Elements of Successful Research The following paragraphs outline the elements of successful research: * The development of a nanonal research pohcy to support national economic and social growth is the responsibility of the highest levels of government. National policy and imperatves must be stated precisely, concisely, and emphatically to send clear messages to society, especially to the productive sector and the research community. A policy should be accompanied by a statement of specific prionnes and targets and a strategy for their achievement, including, if necessary, the infrastructure for management. Without such a national plan, specific targets with incentives, accountabilines, and critena for measuring performance cannot be allocated. * A management strategy for research must be able to translate national policy into realizable strategies at all levels and to oversee their implementation and operation. Lack of productivity and success in research frequently stems directly from the absence of overall management. The national research infrastructure must therefore be capable of interpretmig national policy at institutional and individual levels in terms of marshalling. and if necessary concentrating, the vanety of research activities; semng priorities and targets; allocating resources, roles, and accountabilities; monitoring progress and output against targets; and establishing systems of performance criteria, incentives, and sanctions to ensure the effective use of available resources. * The resources required for successful research are primarily a critical mass of staff with the relevant knowledge. expernse, and skills and with access to the necessary facilities, funding, and equipment. In most developing countries, some or all of these essential ingredients are in very short supply. The capacity and desirability of government funding for research activities must, therefore, be assessed and priorities established. Private funding of research in which the sponsor has no vested or proprietonal interest in the outcome, and government grants to encourage joint industry and education projects are among possible alternatives. Appropnate methods and criteria for allocating resources are as important as the level of resourcing. Open, normative allocation systems can be designed to provide the most effective use of resources targeted at national needs, but should be based on the nature of the research, its performance, and national priorities. Continuing funding should be subject to the achievement of goals and objectives agreed on at the beginning of the project. * An important component of research management and resourcing is to set attainment targets, measure performance, and provide incentives. Unfortunately, incentives and sanctions at the insiunonal or individual level are rarely found in developing countnes' research systems. The funding of university research teams or government research centers is not linked to output. The organization and direction of a research unit must recognize and cater for the special nature of the activity and the motivation necessary for success. However, once it has been accorded the necessary authority, responsibilities, targets, and resources, it should not be protected from market forces. It should be encouraged to attract proprietary research and should be held accountable for the public funds allocated to it. * As concerns staffing roles and responsibilines, at the national level it is customary to integrate scientific expertse into the process of government policymaking. In countries where the number of appropriately qualified individuals is limited, they are frequently seconded into advisory or executive positions, and hence obliged to fulfill multiple roles. Unambiguous roles and uncompromised responsibilities are necessary to provide good, objectve-sometimes unpalatable-advice to the highest level of government. Minstries concerned with education, industry, or research frequently have insufficient professional staff. They therefore second or contract practicing acadenics and researchers to carry out specialist developmental tasks. Such "part-time* functionaries must be used properly. They should not be given routine work that could be more effectively carried out by career civil servants, and their roles and relationships must be defined so as to take maximum advantage of their expernse and capabilities. If this does not happen, the national research cadre becomes demoralized and less productive as its talents and energy are dispersed and diverted away from its true vocation of analytic and creative activity. 163 ANNEX 4 TECHMICAL AND VOCATIONAL EDUCATION AND TRAINING Table 4-1. Enrollment in Main TVET Cr4 traimang ad apprentcAeships Technirtanh, zpervisory. and other training Enrolment Enrollment Instiustia Full time Pan time Full time Par time r Number ype of courte Entry Total ntry Total rY Entry Total Etry Total Miistry ofigher Edaraio Techncal college 25 CraftlNational Certificate 2,003 2,537 545 545 Higher National Diploma of Technology 90 287 - National Technical Teacher Traiing Centre I Basic Training for NAITA 162 162 0 0 National DiplomalCertificate of Engineering Technology 117 187 1,679 3,584 Associated Technical Unit 5 Training for ICTAD 1,989 1.989 0 0 Higher National Diploma Accoumsancy/Busiess etc 672 1,107 682 1.728 TOal - 4,154 4,688 545 545 National DiplomalCertificate Business English etc 3.550 4,655 1.630 2,65 In-Service Technician Teacher Training 31 31 - - 4.460 6,267 3,991 7,87 Mnistry of Yoath. Sports. and Culture NArTA - Appreniceships na1 15.000' - - National Diploma Engmeering Science 149 45& Appeeice Training Institute - 230 52(r - - Technician Trairmng lntitute - 0 0 AETI - 160 440 - - Other - Steo. newing. etc (2-6 ninths) 754 754 - - Total - 1.671 - 149 45( Ministry qf Labour ad Vocaional Training Foreman Training Institute I Advanced skills. etc (3 to 4 mrooths) 277 277 - - Foreman/supervisor (6 monhs) 34 34 - - Skills Training Centres 62 2.481 2,481 Mobile - Miscellaneous (6 to 12 nonhs) 4,331 4,331 - - Ministry of Policy Plannng andl Inplememtation Istitute for Comstruction Training and Developmen' I Crafts, mechanics, etc 6.670 6.760 Supervisory (I day to 7 weeks) - - 815 815 Ministry of Handloon and Teties National Textile Training Cctre I - - - Various courses (10 days to I year) 48 48 300 300 Clothing industry Training institate I Machine speratoers/mechanics 1.200 1.20D - - Producion supervisory (II to 12 weeks) 120 120 - - Ministry ilhdustry Nation Insune for Busmnss management- - - - Mtscelaneous busmess - - 700 700 - Not applicable. Note: The table does not include training provided by ministries for their employees. a. Includes trainees undergoing industrial on-the-job training. b. Institute for Construction Training and Development basic craft training is shown under the technical college category. 165 Table 4-2. Enrollment in Craft and Techician Programs in Public Institutions by Field of Specialization, 1991 Craft/certificate Technician Field Full time Part time Remarks Full time Part time Remarks Construction 2,336 2,218 Craft 94 - Higher National Diploma 8,838 0 Short Course 39 815 National Diploma 180 - Technician Training Institute Engineering 2,669 1,761 Craft 307 - Higher National Diploma 204 185 Short Course' 270 - Technician Training Institute Textile 2,995 116 Craft 168 300 National Diploma 3,480 17 Short Course - - Jewelry 0 4 Short Course 27 - National Diploma Commerce/ 3,558 2,031 Craft 1,107 1,728 Higher National Diploma Accountancy Short Course 698 - National Diploma Others (Agr., 36 0 Craft 359 - National Diploma home, ec., etc.) 0 15 Short Course - - NAITA apprenticeship 15,000 0 Craft 0 0 a. No information available on specialization breakdown. Programs vary in duration from six to forty-eight months. Source: Information gathered by the mission from institutes and ministries. 166 Table 4-3. Capital and Recurrent Costs for Public TVET Training, Selected Years (SL Rs thousands) Budget Capital Recurrent Ministry total costs costs Salaries Consumables Grants Maintenance Others Year Ministry of Higher Education Technical colleges 203,579 130,419 73,160 59,069 1,477 213 1,058 11,343 1990 Ministry of Youth, Sports and Culture NAITA-approved program n.a. n.a. 109,000 14,900 750 63,210 2,720 27,390 1990 Institutes n.a. n.a 24,000 10,600 1,400 13,300 n.a. 10,000 Ministry of Labour and Vocanonal Training Foreman Training institute 7,178 2,800 4,378 1,893 655 0 100 1,720 1992 Skill Development and Vocational Training Program 67,329 8,050 59,279 31,090 5,400 20,000 350 2,439 1992 Ministry of Policy Plan and Implementation Institute for Construction Training and Development 100,000 0 n.a. n.a. n.a. n.a. n.a. n.a. 1992 Ministry of Handlooms and Textiles National Textile Training Centre n.a. 584 9.377 3,699 n.a. 0 n.a. n.a. 1991 Clothing Industry Training Institute n.a. n.a. 3,300 1,920 300 0 n.a. n.a. 1991 Ministry of Industry NIBM 32,500 5,000 27,500 8,000 n.a. n.a. n.a. n.a. 1991 Source: Information gathered by the mission from institutes and ministries. 167 ANNEX 5 EDUCATION EXPENDITURE AND FINANCE A. Miscellaneous Tables and Figures 168 Table 5-1(a). Government General and Education Expenditure, 1982-91 (Current Prices) Catcgory 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 Current paces (SL Rs thousands) GDP 99,238 121,601 153,746 162.375 179,474 196.723 221.982 251,891 321,751 337,399 386,999 453,092 Government expenditure Recurrent 18,342 22,002 24,631 32.645 33,966 39,560 46,132 56,884 71,770 87,264 90,365 103,011 Capital 16,146 16,664 20,817 22,527 25,905 25,975 27,971 26,651 26,748 53,980 63.292 69,780 Total 34,488 38,666 45,448 55,172 59,871 65.535 74,103 83,535 98.518 143,063 153.507 173,041 Education expenditure Recurrent 2,127 2.437 2,672 3,636 3,834 4,279 5,371 6,612 8,529 7,951 10,533 11,211 Capital 471 507 536 945 1,281 907 1,014 1,529 1,042 1.178 2,008 2,845 Total 2,598 2,944 3,208 4,581 5,115 5,186 6.385 8,141 9,571 9.129 12,541 14,056 Government expenditure/GDP (%) 34.75 31.80 29.56 33.98 33.36 33 31 33.38 33.16 30.62 42.4 3.2 38.2 Education expenditurc/GDP (%) 2.62 242 2.09 2.82 2.85 2.64 2.88 3.23 2 97 2.7 3.2 3.8 Education recurrent/government recurrent (%) 11.60 11.08 10.85 11.14 11.29 10.82 11.64 11.62 11.88 9.1 11.7 10.9 Education capital/government capital (%) 2.92 3.04 2.57 4.19 4.94 349 3.63 5.74 3.90 2.2 3.2 4.1 Total education expenditure/total government expenditure (%) 7.53 7.61 706 8.30 8.54 7.91 8.62 9.75 9.71 64 8.2 8.1 GDP deflator 1.000 1.146 1.341 1.354 1.433 1.533 1.710 1.874 2.248 2.5 n.a n.a. Annual inflation (%) n.a. 14.60 17.02 097 5.83 6.98 11.55 959 19.96 11.39 11 4 11.7 Table 5-1(b). Government General and Education Expenditure, 1982-91 (Constant 1982 Prices) Category 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 Growth rate (%) 1982-91 1985-91 Constant paces (SL Rs tbouands) GDP 99.238 106,109 114,650 119,922 125.244 128,326 129,814 134,414 143,128 134,744 Government expenditure Recurrent 18,342 19,199 18,368 24,110 23,703 25,806 26,978 30,354 31.926 34.850 Capital 16,146 14,541 15,523 16,637 18,077 16,944 16,357 14,221 11,899 21.558 Total 34,488 33,740 33,891 40,747 41,780 42,750 43,335 44.576 43,825 57,134 Education expenditure Recurrent 2,127 2,127 1,993 2,685 2.676 2,791 3,141 3,528 3,794 3.175 Capital 471 442 400 698 894 592 593 816 464 470 Total 2.598 2.569 2,392 3.383 3,569 3,383 3,734 4,344 4.258 3,646 Real growth rates (%) GDP n.a. 6.92 8.05 4.60 4.44 2.46 1.16 3.54 6.48 -5.86 3.46 1.96 Government expenditure Recurrent n.a. 4.67 -4.33 31.26 -1.69 8.87 4.54 12.52 5.18 9.16 7.39 6.33 Capital n.a. -9 94 6.76 7.18 8.66 -6.27 -3.46 -13.06 -16.33 81.18 3.26 4.41 Total n.a. -2.17 0.45 20.23 2.53 2.32 1.37 2.86 -1.68 30.37 5.77 5.80 Education expenditure Recurrent n.a. -0.02 -6.30 34.77 -0.37 4.33 12.53 12.33 7.53 -16.31 4.55 2.83 Capital n.a. -6.07 -9.65 74.61 28.08 -33.81 0.23 37.59 -43.19 1.49 -0.01 -6.36 Total n.a. -1.12 -6.88 41.43 5.50 -5.23 10.38 16.34 -1.99 -14.37 3.84 1.25 n a. Not applicable. Source. Jayanntha (1992)/Central Bank 169 Figure 5-1. Government Expenditure, 1982-91 (real growth) SI Rs billions 50 40- 30- 20 - 10- 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 - Recurrent -- Capital - Total Source: Table 5-1. Figure 5-2. Education Expenditure, 1982-91 (real growth) SL Rs millions G 4- 3- 2- 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 - Recurrent --- Capital - Total Source: Table 5-1. Figure 5-3. Percentage of Government and Education Expenditure to GDP, 1982-91 Percent 40- 35- 30 25- 20 - 15 - 10- 5- 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 M Education/GDP Education/Government Government/GDP Source: Table 5-1. 171 Table 5-2a. Public Investment for Education, 1992-96 (Rs millions) 1993 1994 1995 1996 1997 Total FA Total FA Total FA Total FA Total FA General Administration Rehabilitation & Maintenance 9 - 9 - 10 - 12 - 14 - Construction of Buildings 2 - 2 - 3 - 4 - 5 - Purchase of Furniture & Equipment 6 - 7 - 8 - 9 - 10 - Building for the Library ServicesBoard 1 - 1 - 1 - 2 - 3 - Furniture & Equipment for the Library Services 6 - 6 - 6 - 7 - 8 - Subtotal 24 - 25 - 25 - 34 - 40 - General Eduation (national schools) Rehabilitation & Maintenance 35 - 40 - 50 - 60 - 70 - Construction of Buildings 40 - 45 - 50 - 60 - 70 - Purchase of Equipment 40 - 45 - 50 - 60 - 70 - Subtotal 115 - 130 - 150 - 180 - 210 - Other Schools Youth Commission Recommendations 257 - 250 - 280 - 300 - 310 - Construction of Buddings Purchase of Furniture & Equipment 45 - 45 - 55 - 60 - 75 - World Bank Funded General Education Project Construction of Buildings 290 270 290 260 300 270 300 270 300 280 Purchase of Furniture & Equipment 165 140 200 170 200 185 200 185 200 190 SIDA Funded General Education Project Construction of Buildings 80 80 80 74 80 75 80 75 80 75 Purchase of Furniture & Equipment 15 15 15 14 18 17 20 19 20 19 Purchase of Science Equipment 25 - 25 - 26 - 27 - 30 - School Buidings for National Requirements 5 - 5 - 6 - 6 - 7 - Subtotal 882 505 920 518 965 547 993 549 1022 564 National Institute of Education Rehabilitation & Maintenance 5 - 5 - 6 - 6 - 7 - Construction of Buildings 18 - 18 - 5 - 5 - 5 - Purchase of Furniture & Equipment 30 7 30 5 32 - 34 - 35 - Subtotal 53 7 53 5 43 - 45 - 47 - Provincial Councils subtotal 600 - 630 - 650 - 670 - 700 - Table 5-2a (Continued) 172 1993 1994 1995 1996 1997 Total FA Total FA Total FA Total FA Total FA Teachers Education Rehabilitation & Maintenance 15 - 15 - 17 - 19 - 22 - Construction of Buildings 43 8 43 5 45 - 47 - 50 - Purchase of Furniture & Equipment 8 - 8 - 10 - 12 - 14 - Subtotal 66 8 66 5 72 - 78 - 86 - Ministry of Higher Education Rehabilitation & Maintenance 2 - 2 - 2 - 3 - 3 - Purchase of Furniture & Equipment 9 - 9 - 10 - 12 - 13 - Subtotal 11 - 11 - 12 - 15 - 16 - Technical Education Rehabilitation & Maintenance 15 - 15 - 20 - 25 - 30 - Construction of Buildings 136 95 140 130 150 140 150 140 130 120 Purchase of Furniture & Equipment 200 145 200 180 200 180 200 180 160 150 Subtotal 351 240 355 310 370 320 375 320 320 270 Total MOEHE 2107 721 2195 838 2296 867 2397 869 2449 834 Department of Examinations Rehabilitation & Maintenance 3 - 4 - 10 - 15 - 18 - Construction of Buildings - - 20 - 10 - 12 - 15 - Purchase of Furniture & Equipment 36 - 36 - 40 - 42 - 45 - Subtotal 39 - 60 - 60 - 69 - 78 - Department of Educational Publications Rehabilitation & Maintenance I - 2 - 2 - 2 - 3 - Purchase of Furniture & Equipment 3 - 3 - 4 - 4 - 5 - Subtotal 4 - 5 - 6 - 6 - 8 - University Grants Commission Rehabilitation & Maintenance 120 - 160 - 200 - 225 - 250 - Construction of Buildings 332 - 400 - 425 - 450 - 460 - Purchase of Furniture & Equipment 330 100 350 100 360 120 380 - 400 - Subotal 782 100 910 100 985 120 1055 - 1110 - Total 1932 860 3170 938 3347 987 3527 869 3645 834 New Projects ADB General Education Project - - 190 152 230 185 270 215 300 240 Implementation Plan of Action for Children - - 70 - 90 - 100 - 120 - Subtotal - - 260 152 320 185 370 215 420 240 Grand Total 2932 860 3430 1090 3667 1172 3897 1084 4065 1074 Source: Department of National Planing: Ministry of Policy Planing and Implementation 173 Table 5-2b. MOEHE Capital Budget by Project, 1992 Percentage Unmt cost Project SL Rs thousands of total (SL Rs) Rehabilitation and improvements of capital assets 59,000 3.14 14 Construction and improvements to buildings 80,100 4.26 19 Acquisition of equipment and furniture for national school buildings 147,000 7.82 35 Construction of buildings for Library Services Board 815,300 43.36 194 Acquisition of equipment and furniture for the Library Services Board 246,000 13.08 58 Buildings for the National Institute of Education 19,000 1.01 5 Acquistion of equipment and furniture for the 14,000 0.74 3 National Institute of Education Capital grants for provincial councils 500,000 26.59 119 Total 1,880,400 100 447 Source: MOEHE (table budget 2). Table 5-3. Budgeted and Actual Education Expenditure, 1987-91 (SL Rs thousands) Category 1987 1988 1989 1990 1991 Recurrent Allocated 4,202 4,313 7,620 6,020 8,620 Actual 4,279 5,371 6,612 8,529 7,951 Actual/allocated 1.02 1.25 0.87 1.42 0.92 Capital Allocated 1,033 1,091 1,780 1,281. 2,272 Actual 907 1,014 1,529 1,042 1,177 Actual/allocated 0.88 0.93 0.86 0.81 0.52 Recurrent and capital Allocated 5,235 5,404 9,400 7,301 10,892 Actual 5,186 6,385 8,141 9,571 9,128 Actual/allocated 0.99 1.18 0.87 1.31 0.84 Source: Jayanntha (1992). 174 Figure 5-4. Structure of the Recurrent Budget for Education, 1992 (SL Rs millions) Total Recurrent Expenses 11.919 MOEHE Provinces 5,070 6,121 Head 360 Head 361 Head 363 Head 364 MOEHE UGC Examinations Department Education Publications 5,070 1,000 218 Department 4 Program 1 Projects Objects General Administration - 1. General Administration 36 -- 1. Personal emoluments 1,703 2. Planning of Education 4 -2. Travel expenses 3. Building Program 2 - 3. Supplies and Requisites 4. Grants, etc. 1,661 - 4. Repair and Maintenance 5. Transport and Communications 6. Grants, Subsidies Program 2 General Education 1. In-Service Training 90 1,823 2. Implementation and Support 1,547 - 3. Special Education 186 Program 3 Teacher Education 1. Support and Administration 63 119 (technical colleges) 2. Colleges of Education 56 Program 4 Higher Education 1. General administration 11 (technical colleges) - 2. Grants 38 202 3. Support and Adminstration 5 - 4. Technical Colleges 89 - 5. Asian Development Bank 59 Project Program 5 Educational Services 1. General administration 0.8 0.8 Note: The terms head and program are used by the MOEHE budget. The budget is divided first by heads, and then broken down by programs, which are further split into projects. Projects are then divided based on objects. Source: MOEHE. 175 Table 5-4. Central and Provincial Education Budgets, 1991 and 1992 SL Rs thousands Percentage of total budget 1991 1992 1991 1992 Program Estunated Actual Estimated Estunated Actual Estimated Central (MOEHE) recurrent expenditure Head No. 360: Minister of Education and Higher Education Program 1: General Administration 1,661,416 1,645,568 1,702,994 52.14 52.69 44.26 Program 2: General Education 1,219,850 1,256,100 1,823,061 38.28 40.22 47.38 Program 3. Teacher Education 119,635 89,178 118,991 3.75 2.86 3.09 Program 4: Higher Education 184,931 131,582 201,675 5.80 4.21 5.24 Program 5: Education Services 647 588 1 830 0.02 0.02 0.02 Total 3,186,479 3,123,016 3,847,551 100.00 100.00 100.00 Head No. 361 University Grants Commission 805,000 802,431 1,000,000 n.a. n.a. n.a. Head No. 363 Examinations Department 167,973 163,497 218,403 n.a. n.a. n.a. Head No. 364 Educational Publication (books)* 3,354 3,353 4,076 n.a. n.a. n.a. Total recurrent 4,162,806 4,092,297 5,070,030 n.a. n.a. n.a. Central (MOEHE) capital expenditure Head No. 360: Minister of Education and Higher Education Program 1: General Administration 15,000 12,535 18,000 0.78 0.91 0.96 Program 2; General Education 1,439,980 1,180,810 1,386,000 75.35 85.79 73.71 Program 3: Teacher Education 58,000 53,042 58,000 3.04 3.85 3.08 Program 4: Higher Education 396,550 128,970 415,000 20.75 9.37 22.07 Program 5: Education Services 1,450 1,103 3,400 0.08 0.08 0.18 Total 1,910,980 1,376,460 1,880,400 100.00 100.00 100.00 Head No. 361 University Grants Commission 300,000 395,000 600,000 n.a. n.a. n.a. Head No. 363 Examinations Department 14,000 14,917 20,000 n.a. n.a. n.a. Head No. 364 Educational Publication (books)* 1,000 971 1,300 n.a. n.a. n.a. Total capital 2.225,980 1,787,348 2,501,700 n.a. n.a. n.a. Recurrent and capital expenditure Head No. 360: Minister of Education and Higher Education Program 1: General Administration 1,676,416 1,658,103 1,720.994 32.89 36.85 30.05 Program 2: General Education 2,659.830 2,436,910 3,209,061 52.18 54.16 56.02 Program 3- Teacher Education 177,635 142,220 176,991 3.48 3.16 3.09 Program 4: Higher Education 581,481 260,552 616,675 11.41 5.79 10.77 Program 5: Education Services 2,097 1,691 4,230 0.04 0.04 0.07 Total 5,097,459 4,499,476 5.727,951 100.00 100.00 100.00 Head No. 361 University Grants Commission 1,105,000 1,197,431 1,600,000 n.a. n.a. n.a. Head No. 363 Examinations Department 181,973 178,414 238,403 n.a. n.a. n.a. Head No. 364 Educational Publication (books)* 4,354 4,324 5,376 n.a. n.a. n.a. Total recurrent and capital 6,388,786 5,879,645 7,571,730 n.a. n.a. n.a. Total provincial (recurrent) n.a. 5,304.783 6,121,211 n.a. n.a. n.a. Total central and provincial Recurrent n.a. 9,397,080 11,191,241 n.a. 84.02 81.73 Capital n.a. 1,787,348 2,501,700 n.a. 15.98 18.27 Recurrent and capital n.a. 11,184,428 13,692,941 n.a. 100.00 100.00 n.a. Not applicable. * Does not include the cost of printing and publication of textbooks by the commissioner of educational publications, estimated at SL Rs 225 million for 1992. Actual expenditure in 1991 was SL Rs 272 million, expenditure estimated for 1991 was SL Rs 180 million then revised to SL Rs 279 million. Source: MOEHE. 176 Table 5-5. MOEHE Budget by Program and Project, 1991 and 1992 SL Rs thousands Percentage of total budget 1991 1992 1991 1992 Program/project Estimated Actual Estimated Estimated Actual Estimated Recurrent expenditure Program 1: General Administration General Administration 49,066 32,637 35,910 1.54 1.05 0.93 Planning and Programming of Education 5,875 4,056 3,926 0.18 0.13 0.10 Planning and Administration of Departmental Building Program 2,427 1,113 1,750 0.08 0.04 0.05 Miscellaneous Grants and Welfare Services 1,604,048 1,607,762 1,661,408 50.34 51.48 43.18 Total 1,661,416 1,645,568 1,702,994 52.14 52.69 44.26 Program 2: General Education Design in-Service Training and Research 119,535 69,931 89,599 3.75 2.24 2.33 Implementation and Supervision 917,736 993,041 1,547,386 28.80 31.80 40.22 Special Education 182,579 193,128 186,076 5.73 6.18 4.84 Total 1,219,850 1,256,100 1,823.061 38.28 40.22 47.38 Program 3: Teacher Education Supervision and Administration of Teacher Colleges 55,879 35,675 63,366 1.75 1.14 1.65 Colleges of Education 63,756 53,503 55,625 2.00 1.71 1.45 Total 119,635 89,178 118,991 3.75 2.86 3.09 Program 4: Higher Education General Administration 8,931 11,034 10,684 0.28 0.35 0.28 Miscellaneous Grants and Welfare Services 45,103 26,547 38,393 1.42 0.85 1.00 Supervision and Administration 4,474 3,014 5,230 0.14 0.10 0.14 Technical Colleges 73,240 72,050 88,897 2.30 2.31 2.31 Asian Development Bank Project 53,193 18,937 58,471 1.67 0.61 1.52 Total 184,931 131,582 201,675 5.80 4.21 5.24 Program 5: Education Services General Adaministration and Staff Services 647 588 830 0.02 0.02 0.02 Total 647 588 830 0.02 0.02 0.02 Total recurrent expenditure 3,186,479 3,123,016 3,847,551 100.00 100.00 100.00 Capital expenditure Program 1: General Administration Rehabilitation and Improvements of Capital Assets 8,000 7,056 8,000 0.42 0.51 0.43 Construction and Improvements to Buildings 1,000 670 1,000 0.05 0.05 0.05 Acquisition of Equipment and Furniture 1,000 806 4,000 0.05 0.06 0.21 Construction of Building for Library Servces Board 1,000 0 1,000 0.05 0.00 0.05 Acquisition of Equipment and Furniture of Library Services Board 4,000 4,000 4,000 0.21 0.29 0.21 Total 15,000 12,532 18,000 0.78 0.91 0.96 Continued 177 Table 5-5. Continued SL Rs thousands Percentage of total budget 1991 1992 1991 1992 Program/project Estimated Actual Estimated Estimated Actual Estimated Program 2. General Education Rehabilitation and Improvements of Capital Assets 30,000 28,241 23,000 1.57 2.05 1.22 Construction and Improvements to National Schools Buildings 25,000 16,151 30,000 1.31 1.17 1.60 Acquisition of Equipment and Furniture for National Schools 12,000 14,964 15,000 0.63 1.09 0.80 Construction and Improvement to other Buildings (except National Schools)* 440,500 333,771 543,000 23.05 24.25 28.88 Acquisition of Equipment and Furniture for other Schools (except National Schools)* 208,230 84,369 242,000 10.90 6.13 12.87 Buildings for NIE* 228,000 320,502 19,000 11.93 23.28 1.01 Acquisition of Equipment and Furniture for NIE* 6,000 4,353 14,000 0.31 0.32 0.74 Capital Grants for Provincial Councils 490,250 378,458 500,000 25.65 27.50 26.59 Total 1,439,980 1,180,809 1,386,000 75.35 85.79 73.71 Program 3: Teacher Education Rehabilitation and Improvements of Capital Assets 10,000 9,279 10,000 0.52 0.67 0.53 Construction and Improvements to Buildings* 45,000 41,392 0 2.35 3.01 0.00 Acquisition of Equipment and Furniture* 1,500 1,076 2,000 0.08 0.08 0.11 sition of Equipment and Furniture for Colleges of Education* 1,500 1,295 2,000 0.08 0.09 0.11 Total 58,000 53,042 58,000 3.04 3.85 3.08 Program 4: Higher Education Rehabilitation and Improvements of Capital Assets 6,550 949 17,000 0.34 0.07 0.90 Acquisition of Equipment and Furniture 2.000 947 2,700 0.10 0.07 0.14 Construction and Improvements to Buildings for Technical Colleges 108,000 73,935 126,000 5.65 5.37 6.70 Acquisition of Equipment and Furniture for Technical Education 280,000 53,139 269,300 14.65 3.86 14.32 Total 396,550 128,970 415,000 20.75 9.37 22.07 Program 5: Education Services Rehabilitation and Improvements of Capital Assets 450 105 1,000 0.02 0.01 0.05 Acquisition of Equipment and Furniture for Minister of Educational Service 1,000 998 2,400 0.05 0.07 0.13 Total 1,450 1,103 3,400 0.08 0.08 0.18 Total capital expenditure 1,910,980 1.376,456 1.880,400 100.00 100.00 100.00 * Includes foreign aid projects. Source: MOEHE. 178 Table 5-6. Recurrent Expenditure of the Provinces on General Education, 1990-92 Category Western Centr2l Southern Northeast Northwestern North Central UVA Gamuwa ToLa 1990 expendimre (SL Rs abousands) Salaries 1,267.819 708,395 749,880 734.093 659,247 284.025 279.186 540.738 5.223.383 Instructional materials (includes science materials) 1,523 586 728 500 2,068 853 499 1,169 7.926 Office consunables 469 787 634 501 946 396 1.135 431 5,299 Repairs and maitenance 673 1.135 880 264 498 1,830 394 467 6,141 Traveling expenses 2,088 1.267 1.828 757 1.392 374 431 1.271 9,408 Transport, communication. utilities 6,720 4.147 3.991 2,016 5,005 5,000 2.160 2,812 31.851 Welfare bursanes 3.976 2.048 2,451 1.590 2.929 3.000 2.500 2,281 20.775 Total 1,283.268 718.365 760.392 739,721 672,085 295,478 286,305 549.169 5.304,783 1990 pearanuge distribution Salaries 98.80 98.61 98.62 99 24 98.09 96.12 97.51 98.46 98.47 Instructional materials (includes science materials) 0.12 0.08 0.10 007 0.31 0.29 0.17 0.21 0.15 Office consumables 004 0 11 0.08 007 0.14 0.13 0.40 0.08 0.10 Repairs and maintance 0.05 0.16 0.12 0.04 0.07 0.62 0.14 0.09 0.12 Traveling expenses 0.16 0 18 0.24 0 10 0.21 0.13 0.15 0.23 0.18 Transport, communication, utilities 0 52 0.58 0.52 0 27 0 74 1 69 0.75 0.51 060 Welfare bursanes 0.31 0.29 0.32 0.21 0.44 1.02 0.87 0.42 0.39 Total 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 1991 expendimu (SL Rs thousands) Salaries 1,439,098 780.099 771,138 695,571 673,604 317,162 269,601 606,019 5.552,292 Instructional materials (includes science materials) 2.705 900 650 600 1,900 799 500 2.000 10,054 Office consumables 796 480 554 746 1,000 2.245 819 1,309 7.949 Repairs and mamtenance 1,078 1,661 550 617 1.095 1,454 585 1,026 8.066 Traveling expenses 1,811 1,300 1.231 1.093 736 1.723 322 1,250 9.466 Transport, communication, utilities 22,253 4,250 5,928 3,062 5,015 4,500 1,167 4.714 50,889 Welfare bursancs 12,464 2,050 2.425 3.041 3,000 3.500 2,500 7,492 36,472 Total 1,480,205 790.740 782.476 704,730 686,350 331.383 275,494 623,810 5.675,188 1991 percentage distribution Salaries 97.22 98.65 98.55 98.70 98.14 95.71 97.86 97.15 97.83 Instructional materials (includes science materials) 0.18 0.11 0.08 0.09 0.28 0.24 0.18 0.32 0.18 Office consumables 0.05 0.06 0.07 0.11 0.15 0.68 030 021 0.14 Repairs and maitenance 0.07 0.21 0.07 0.09 0.16 0.44 0.21 0.16 0.14 Traveling expenses 0.12 0.16 0.16 0.16 0 11 0.52 0.12 0.20 0.17 Transport, communication, utilities 1.50 0.54 0.76 0.43 0.73 1.36 0.42 0 76 0.90 Welfare bursarics 0 84 0.26 0.31 0.43 0.44 1.06 0.91 1.20 0.64 Total 100.00 100.00 10000 100.00 100.00 100.00 10000 100.00 100.00 1992 expenditure (SL Rs thousands) Salaries 1,317.503 805.340 879,632 841.298 742,167 344,944 427,951 604,700 5,963,535 Instructional materials (includes science materials) 2,200 535 1,400 3,944 5,641 983 1.278 1,000 16.981 Office consumables 805 520 750 265 1.350 720 288 2.000 6,698 Repairs and maintenance 1,255 675 2,100 1,615 1,430 470 550 1,200 9.295 Traveling expenses 2,760 2,065 1,425 3,697 3,600 1.240 1,220 1,340 17.347 Transport, communication. utilities 15.237 13.525 10,965 16.077 9,735 4.581 2.742 4.200 77,062 Welfare bursans 8,636 101 3.635 5,050 3,580 530 2.575 6,186 30.293 Total 1,348.396 822.761 899,907 871,946 767,503 353,468 436.604 620.626 6,121.211 Continued 179 Table 5-6. Continued Sabara- Category Western Central Southern Northeast Northwestern Noath Cental UVA Gamuwa Total 1992 percentage distnbuton Salaries 97.71 97.88 97 75 96 49 96 70 97.59 98.02 97.43 97.42 Instructional materials (includes science materials) 0.16 0 07 0.16 0.45 073 0.28 0.29 0.16 0 28 Office consumables 0.06 0.06 008 0.03 0.18 0.20 0.07 0.32 0.11 Repairs and mantenance 0.09 0.08 0.23 0.19 0.19 0.13 0.13 0.19 0.15 Traveling expenses 0.20 0.25 0.16 0.42 0.47 0.35 0.28 0.22 0.28 Transport, commumication, utilities 1.13 1.64 1.22 1.84 1.27 1.30 0.63 0.68 1.26 Welfare bursancs 0.64 0.01 0.40 0.58 0.47 0.15 0.59 1.00 0.49 Total 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 Orowth at (%) 1990-91 13.30 9.15 2.82 -4 97 2.08 10.83 -3.92 11.97 6.53 1991-92 -8.90 4.05 15.01 23.73 11 82 6.66 58.48 -0 51 7.86 Note: Figures for 1992 are estimates. Source: Provincial departments of education. 180 Table 5-7. Recurrent Unit Costs by Provinces, 1991 (SL Rs) Ctegory Westemn Cntal Southern Nortbeast Nothwe"crM North entrui UVA Gamuwa Total Average annual cost per student Salaries 1,592.99 1.386.77 1,418.53 1.104.09 1323.12 1.323.12 946.38 1453.89 1342.72 Instructional matenals (includes science materials) 2.99 1.60 1.20 0.95 3.73 2.81 1.76 4.80 2.43 Office consumables 0.88 0.85 1.02 1.18 1.96 7.88 2.87 3.14 1.92 Repairs and mancance 1.19 2.95 1.01 0.98 2.15 5.11 2.05 2.46 1.95 Traveling expenses 2.00 2.31 2.26 1.73 1.45 6.05 1.13 3.00 2.29 Transport. communcation. utilities 24.63 7.56 10.90 4.86 9.85 15.80 4.10 11.31 12.31 Welfare bursaries 13.80 3.64 4.46 4.83 5.89 12.29 8.87 17.97 8.82 Total 1,638.48 1,405.68 1,439.38 1.118.62 1,373.06 967.16 1,496.57 1.496.57 1.372.44 Average annual salary per teacher 42,068 32,539 29,722 33,915 29.835 27.161 21.625 31.277 32.520 Source: Provincial departments of education. Table 5-8. Annual Increase in Teachers and Salaries, 1988-92 Cost of Annual average Annual increase Annual increase additional No. of Total salaries salary in number in salaries teachers Year teachers (SL Rs millions) (SL Rs millions) of teachers (SL Rs millions) (SL Rs millions) 1988 141,168 3,545 25,114 n.a. n.a. n.a. 1989 146,974 4,249 28,912 5,806 704 168 1990 178,333 4,966 27,848 31,359 717 873 1991 170,735 5,465 32,009 O' 499 0 1992b 175,682 7,029 40,010 4,947 1,564 198 Total n.a. n.a. n.a. 42,112 3,484 1,239 n.a. Not applicable. a. Between 1990 and 1991 the number of teachers delined as a result of the massive teacher retirement program. b. Estimated. Source: MOEHE. Table 5-9. Cost Projections by Education Level with and without Teacher Increase, 1991-2000 (SL Rs millions) Growth rates (%) Category 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 1991-95 1995-2000 1991-2000 Cost with no growth in general education teachers (base run) General education Salaries 6,009 6,423 6,612 6,755 6,863 6,948 7,008 7,043 7,064 7,078 Nonsalaries 2,455 2,624 2,701 2,759 2,803 2,838 2,862 2,877 2,885 2,891 Total 8,464 9,047 9,313 9,514 9,666 9,786 9,870 9,920 9,949 9,968 3.37 0.62 1.83 Technical education 132 132 132 133 133 133 134 134 135 135 University scenario I 802 833 870 914 970 1,040 1.129 1,244 1,395 1,593 University scenario 2 802 849 903 966 1,042 1,135 1,249 1,392 1,572 1,802 Total with scenario 1 9.398 10,012 10,315 10,561 10,768 10,960 11,133 11,299 11.479 11,696 3.46 1.67 2.46 Total with scenario 2 9,398 10,027 10,348 10,612 10,841 11,055 11,253 11,446 11,656 11.906 3.64 1.89 2.66 Cost with continous growth in general education teachers General education Salaries 6,009 6,460 6,945 7,465 8,025 8,627 9,274 9,970 10,718 11,521 Nonsalaries 2,455 2,624 2.701 2,759 2,803 2,838 2,862 2,877 2,885 2,891 Total 8,464 9,084 9,645 10,224 10,828 11,465 12,137 12,847 13,603 14,412 6.35 5.88 609 - Technical education 132 132 132 133 133 133 134 134 135 135 University scenario I 802 833 870 914 970 1,040 1,129 1,244 1,395 1,593 University scenario 2 802 849 903 966 1,042 1,135 1,249 1,392 1,572 1,802 Total with scenario 1 9,398 10,049 10,647 11,271 11,931 12,638 13,399 14,225 15.132 16,140 6 15 6.23 6.19 Total with scenario 2 9,398 10,064 10,680 11,323 12,004 12,734 13,520 14,373 15,310 16,350 6.31 637 6.35 Assumptions and notes: 1. Cost projections are based on enrollment projections and unit cost, and the proportion of salaries in 1991 (71 percent) in the base run is assumed to remain the same during the projection years. 2. Unit cost is derived for every level of education and based on actual recurrent expenditure of the education level. 3. Unit costs for primary and secondary education are derived for 1991 and assumed to increase gradually by about 2 percent per year to cover quality improvements in general education (doubling expenditure on quality items, for example, teacher training, books, school facilities). 4. Teachers recruitment during the past five years (7 percent per year) is assumed to continue in the second scenario and the salary component was adjusted according to the addional teachers during the projection years and the average salary of teachers in 1991. Source: MOEHE and World Bank population projections. 182 Figure 5-5. Cost Projections for General Education Different Scenarios, 1991-2000 SL Rs billions 14 - 12 - 10 -- 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 -*- Scenario 3 4 Scenario 2 Scenario 1 4- Base run 1 halving the repetition rate. 2 increasing the student/teacher ratio. 3 continuing the current teacher recruitment policy. 183 Table 5-10. Teacher Numbers and Annual Salaries by Education Level, 1985-92 Primary I-V Secondary VI-XI Years XII-XTI All levels GDP No. of Salary No. of Salary No. of Salary No. of Salary Year deflator teachers (SL Rs million) teachers (SL Rs million) teachers (SL Rs million) teachers (SL Rs million) 1985 1.3540 66,167 1,064 63,612 1,037 12,461 228 142,240 2,329 1986 1.4330 65,818 1,163 63,876 1,134 13,635 278 143,329 2,575 1987 1.5330 57,620 1,102 69,542 1,351 13,311 285 140,473 2.738 1988 1.7100 56,018 1,406 71,664 1,778 13,486 362 141,168 3,545 1989 1.8740 58,235 1,618 74,278 2,144 14,461 488 146,974 4.249 1990 2.2480 71,458 1,851 91,885 2,609 14,990 506 178,333 4,966 1991 2.5040 66,980 2,027 88,675 2,826 15,080 612 170,735 5,465 1992' 2.8045 - - - - - - 175,682 7,029 Growth rates (%) 1985 - - 1986 - - - - - - - - 10.5 1987 - - - - - - - - 6.3 1988 - - - - - - - - 29.5 1989 - - - - - - - - 19.9 1990 - - - - - - 16.9 1991 - - - - - - - - 10.0 1992 - - - - - - - - 28.6 1985-92 - - - - - - - - 20.2 Salaries in real terms (SL Rs) 1985 n.a. n.a. 786 n.a. 766 n.a. 169 n.a. 1,720 1986 n.a. n.a. 812 n.a. 791 n.a. 194 n.a. 1,797 1987 n.a. n.a. 719 n.a. 881 n.a. 186 n.a. 1,786 1988 n.a. n.a. 822 n.a. 1,040 n.a. 212 n.a. 2,073 1989 n.a. n.a. 863 n.a. 1,144 n.a. 260 n.a. 2,268 1990 n.a. n.a. 824 n.a. 1,160 n.a. 225 n.a. 2,209 1991 n.a. n.a. 809 n.a. 1,128 n.a. 245 n.a. 2,182 1992 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 2,506 Real growth rate (%) 1985 - - - - - - - - 1986 - - 3.3 - 3.2 - 15.2 4.4 1987 - - -11.4 - 11.4 - -4.3 - -0.6 1988 - - 14.3 - 18.0 - 13.9 - 16.1 1989 - - 5.0 - 10.0 - 23.1 - 9.4 1990 - - -4.6 - 1.5 - -13.6 - -2.6 1991 - - -1.7 - -2.8 - 8.6 - -1.2 1992 - - - - - - - - 14.8 1985-92 - - - - - - - - 6.47 Continued Table 5-10. Continued 184 Average annual salary (SL Rs) Salaries as a percentage Year Total recurrent expenditure of recurrent expenditure Primary Secondary XII-XIII All levels 1985 3,087 75.5 16,074 16,309 18,316 16,376 1986 3,597 71.6 17,669 17,746 20,400 17,963 1987 3,879 70.6 19,132 19,421 21.398 19,490 1988 3,949 89.8 25,094 24,808 26,827 25,114 1989 5,621 75.6 27,779 28,859 33,754 28,912 1990 6,161 80.6 25,910 28,391 33,763 27,848 1991 7,722 70.8 30,262 31,866 40,605 32,009 1992. 9,969 70.5 - - - 40,010 Growthrates (%) 1985 - - - - - - 1986 16.5 - - - - - 1987 7.8 - - - - - 1988 1.8 - - - - - 1989 42.3 - - - - - 1990 9.6 - - - - - 1991 25.3 - - - - - 1992 29.1 - - - - - 1985-92 21.6 - - - - - Salaries in real terms (SL Rs) 1985 2,280 n.a. 11,872 12,045 13,527 12,094 1986 2,510 n.a. 12,330 12,384 14,236 12,535 1987 2,530 n.a. 12,480 12,669 13,958 12,714 1988 2,309 n.a. 14,675 14,507 15,688 14,687 1989 2,999 n.a. 14.823 15,399 18,012 15,428 1990 2,741 n.a. 11,526 12,629 15,019 12,388 1991 3,084 n.a. 12,085 12,726 16,216 12,783 1992 3,555 n.a. n.a. n.a. n.a. 14,266 Real growth rate (%) 1985 n.a. n.a. n.a. n.a. n.a. n.a. 1986 10.1 n.a. 3.9 2.8 5.2 3.6 1987 0.8 n.a. 1.2 2.3 -2.0 1.4 1988 -8.7 n.a. 17.6 14.5 12.4 15.5 1989 29.9 n.a. 1.0 6.1 14.8 5.0 1990 -8.6 n.a. -22.2 -18.0 -16.6 -19.7 1991 12.5 n.a. 4.9 0.8 8.0 3.2 1992 15.3 n.a. n.a. n.a. n.a. 11.6 1985-92 7.68 n.a. n.a. n.a. n.a. 2.79 a. Estimated. n.a. Not applicable. - Not available or not calculated. Source: MOEHE. Figure 5-6. Teacher Salaries, 1985-92 185 SL Rs billions 8 6- 4- 0- 1985 1986 1987 1988 1989 1990 1991 1992 Year Real E Nominal Table 5-11. Education Recurrent Expenditure, 1992 SL Rs thousands Percent Central Central Central and Central and and Provincial Type of expenditure (MOEHE) Provincial Provincial Provincial Provincial unit cost (Rs) Personnel emoluments 1,065,281 5,963,535 7,028,816 97.42 70.51 1,671 Travel expenses 5,535 17,347 22,882 0.28 0.23 5 Supplies and requisites 31,028 23,679 54,707 0.39 0.55 13 Repairs and maintenance 10,710 9,295 20,005 0.15 0.20 5 Transport, communication, and utilities 115,015 77,062 192,077 1.26 1.93 46 Grants and contributions 2,515,448 30,293 2,545,741 0.49 25.54 605 Interest payments, dividends, and bonuses 15,000 - 15,000 - 0.15 4 Other services 89,534 - 89,534 0.00 0.90 21 Total 3,847,551 6,121,211 9,968,762 100.00 100.00 2,370 - Not available. Source: MOEHE. 186 Table 5-12. Recurrent Expenditure and Unit Costs by Education Level, 1991 and 1992 Expenditure (SL Rs thousands) No. of students Unit costs Unit cost as a percentage of per Education level 1991 1992 1991 1992 1991 1992 capita GDP, 1991 Primary 3,554,488 4,195,618 2,081,104 2,058,000 1,708 2,039 7.74 Secondary 4,908,579 5,793,948 2,048,960 2,102,000 2,396 2,756 10.85 Total general education 8,463,067 9,989,566 4,130,064 4,160,000 2,049 2,401 9.28 Technical education (technical colleges) 131,582 201,675 19,311 18,567 6,814 10,862 30.87 University' 802,431 1,000,000 42,742 44,000 2,242 2,650 10.15 All levels 9,397,080 11,191,241 4,192,117 4,222,567 11,105 15,913 10.15 a. General education expenditure was distributed by primary and secondary on the basis of the ratios of students (50 percent primary) and teachers (39 percent primary). Per capita GDP in 1991 was SL Rs 22,075. b. Includes the affiliated university colleges, the institutes, and the Open University. Source: MOEHE. 187 Table 5-13. Number of Students in Government Schools, 1985-92 1985 1986 1987 1988 Year Male Female Total Male Female Total Male Female Total Male Female Total I 204,551 193.435 397,986 217.309 203,928 421,237 221,664 207,323 428,987 216,970 202.919 419,889 II 211.559 196.324 407,883 210.711 196.825 407.536 221,950 206.969 428,919 228.284 211,276 439.560 III 198,662 184,152 382.814 207,705 192,109 399,814 208,614 193.847 402.461 220.631 205,827 426.458 IV 192,002 175,486 367,488 194.631 180.050 374,681 202.528 187,618 390.146 205,235 190.643 395.878 V 177.451 164,812 342.263 179,969 166,871 346,840 184,119 172,073 356,192 192.360 180,768 373.128 Total 1,063.480 991,433 2,054,913 primary 984.225 914.209 1,898,434 1.010,325 939,783 1,950.108 1.038.875 967.830 2.006,705 VI 159.558 153,784 313,342 162,528 154,634 317,162 163.825 155,599 319,424 171,042 163,175 334.217 VII 141.241 138.206 279.447 146,852 144.414 291.266 150,503 146.383 296.886 153.210 148,720 301.930 VIII 128.268 129.364 257,632 127,862 128,594 256.456 131,475 134.286 265,761 138.146 138,688 276,834 Total lower secondary 429.067 421.354 850.421 437,242 427,642 864.884 445,803 436.268 882.071 462.398 450.583 912.981 IX 118.057 123.932 241,989 115.496 120,718 236,214 116,812 120,402 237,214 121,505 127.337 248,842 X 98,694 105.920 204,614 105,525 114,496 220,021 103,100 111,218 214,318 104,788 111,749 216,537 XI 1 yr 143.965 167.867 311,832 151,704 174.388 326,092 103,587 115.321 218,908 96,276 106.758 203.034 2 yr - - - - - - 59,270 71,372 130,642 72,149 85,396 157,545 Total upper secondary 360.716 397.719 758,435 372.725 409,602 782,327 382,769 418.313 801,082 394,718 431.240 825.958 xKi Science 13.106 10.840 23.946 10.709 9,143 19,852 11,174 8.572 19.746 11,972 9,524 21.496 Arts 9,178 20.087 29.265 8,502 19,140 27.642 9,477 20,456 29,933 10,119 21.690 31,809 Commerce 6,704 7,987 14,691 8,482 9.673 18,155 8.719 9,014 17,733 8,133 8.558 16.691 XIII, 1 yr Science 13,356 11,842 25.198 18.637 17,339 35,976 10.639 9.670 20,309 10,857 8,881 19,738 Arts 5,560 15,099 20,659 8,573 23.024 31,597 6.357 16.121 22,478 7,358 17,326 24.684 Commerce 8.182 10,849 19,031 9,158 12.009 21,167 7,363 9,064 16,427 7,663 8,344 16,007 XIII. 2 yr Science - - - - - - 7,534 7,644 15,178 6,494 6,772 13.266 Arts - - - - - - 4.167 11,138 15,305 4,095 10,833 14,928 Commerce - - - - - - 3,477 4,575 8,052 4,530 5,991 10,521 AIL Science 26,462 22.682 49,144 29,346 26,482 55,828 29,347 25.886 55.233 29,323 25.177 54,500 Arts 14,738 35,186 49,924 17.075 42,164 59.239 20,001 47,715 67,716 21.572 49,849 71,421 Commerce 14,886 18.836 33,722 17.640 21.682 39.322 19,559 22,653 42,212 20,326 22,893 43.219 Total A/L 56,086 76,704 132,790 64,061 90.328 154,389 68.907 96.254 165,161 71,221 97.919 169,140 All levels 1,830.094 1,809,986 3,640,080 1.884.353 1.867.355 3,751.708 1.936,354 1,918,665 3,855,019 1,991,817 1,971.175 3,962.992 Continued 188 Table 5-13. Continued 1989 1990 1991 1992 Year Male Female Total Male Female Total Male Female Total Male Female Total I 217.037 202.920 419.957 213,467 199,701 413,168 211.431 199,050 410,481 195,196 183,725 378,921 II 224.412 208,057 432,469 219.039 202.752 421,791 218,409 201,682 420.091 214,046 198,465 412.511 W 227,243 209.619 436,862 222.366 205.527 427,893 219.721 202.693 422,414 216,988 199.185 416.173 IV 214,874 201.528 416,402 219,891 203.971 423.862 218.446 202,509 420,955 213.986 197,966 411,952 V 196,135 183,906 380,041 202,982 191,386 394.368 210.381 196,782 407.163 208,097 194,650 402,747 Total primary 1,079.701 1,006,030 2.085.731 1.077.745 1,003.337 2,081.082 1,078.388 1,002,716 2,081,104 1,048,313 973,991 2,022,304 VI 180,137 172.407 352,544 184,342 175,985 360,327 192,986 184.977 377,963 200.155 189,775 389,930 VII 159,822 155.622 315,444 165.662 163,062 328.724 170,535 167,921 338.456 179,264 176,779 356,043 VIII 141.489 141,379 282.868 146.795 146,946 293.741 152.280 155,090 307.370 157,057 159.693 316,750 Total lower secondary 481,448 469,408 950,856 496,799 485,993 982,792 515,801 507,988 1.023,789 536,476 526.247 1,062,723 IX 126,477 130,136 256.613 128.121 131.983 260,104 133.413 138.364 271.777 139,403 145.964 285,367 X 109,673 118.193 227,866 112.822 120.177 232.999 115,117 123,422 238,539 121.574 129.466 251.040 XI I yr 96,016 105,174 201,190 99.897 110.419 210.316 102,312 112,903 215.215 105.167 116.294 221,461 2 yr 67.179 79,538 146.717 75.327 87.265 162,592 53,024 65,099 118,123 57.960 68.478 126.438 Total upper secondary 399,345 433,041 832,386 416.167 449.844 866,011 403,866 439,788 843.654 424,104 460,202 884,306 XII Science 14.481 11.494 25,975 10,250 8.019 18.269 10,656 8,810 19.466 10,257 8,150 18.407 Arts 13,244 26,947 40.191 9,855 20,335 30,190 11.845 26.358 38,203 12.587 25,610 38.197 Commerce 12,649 12.901 25,550 11.188 10.979 22.167 11,297 11,980 23.277 11.612 11,375 22.987 XIII. 1 yr Science 11,104 8,925 20,029 12.972 10,539 23.511 9,419 7,751 17,170 9,776 7,963 17,739 Arts 7,373 17.895 25,268 8,453 20,497 28,950 7,933 18,732 26,665 8,908 20.888 29,796 Commerce 7.434 8,005 15.439 10,181 11.068 21.249 10,012 10.392 20,404 9,897 10,878 20.775 XI. 2 yr Science 6,889 5.636 12.525 6,893 6.309 13,202 6.750 6,337 13,087 5,401 6.039 11,440 Arts 4.387 10,495 14.882 4.251 11,107 15.358 4.961 12,477 17,438 4,638 10.800 15,438 Commerce 4,417 4.566 8.983 3,874 4.617 8,491 5,014 5.843 10.857 5.109 5,814 10,923 AIL Science 32.474 26.055 58,529 30,115 24,867 54.982 26,825 22,898 49.723 25.434 22.152 47.586 Arts 25.004 55.337 80,341 22.559 51.939 74,498 24,739 57.567 82,306 26,133 57.298 83,431 Commerce 24,500 25.472 49.972 25.243 26.664 51.907 26,323 28.215 54.538 26.618 28,067 54,685 Total A/L 81,978 106,864 188,842 77,917 103,470 181.387 77,887 108,680 186,567 78.185 107,517 185,702 All levels 2.042.472 2.015.343 4,057.815 2,068,628 2.042,644 4.111,272 2,075.942 2.059.172 4.135.114 2,087,078 2.067,957 4.155.035 - Not available. Notes: The entries 1 yr and 2 yr refer to students who are allowed to continue in years XI and XI for a second year to prepare for examinations. The figures for 1992 are provisional. Source: MOEHE. 189 Figure 5-7. Unit Cost by Education Level, 1991 and 1992 SL Rs thousands 25- 20 - -- 15- 10- 0- Primary Secondary Technical University Education level 1991 M 1992 Source: Table 5-12. 190 Table 5-14. Education Expenditure as a Share of the Government Budget and of GDP and Unit Costs as a Share of per Capita GDP in Selected Asian Countries Education expenditure as a percentage of Unit cost as a percentage of per capita GDP Government Primary Secondary Higher Country budget GDP education education education Sri Lanka (1991) 7.8 2.4 7.7 10.9 85.0 Bangladesh 10.3 1.5 6.4 30.0 244.6 China 7.8 3.3 9.2 27.6 243.3 India 13.7 3.0 6.0 17.3 231.1 Indonesia 15.0 3.7 12.6 23.3 91.1 Korea, Republic of 15.6 3.4 16.5 23.4 70.6 Malaysia 16.0 6.0 14.1 21.3 190.3 Nepal 9.6 1.5 9.0 13.5 249.0 Philippines 11.5 1.8 5.8 8.6 30.0 Thailand 19.4 3.6 15.5 15.3 39.9 Note: Data for other Asian countries is from the mid- to the late 1980s. Source: Sri Lanka: mission estimates; other countries: World Bank (1989a). 191 Table 5-15. Recurrent Unit Cost by Type of School, 1991 (SL Rs thousands) Secondary and Primary Lower secondary Upper secondary School type (I-V) (VI-VIII) (IX-XIII) All years 1AB (I-XIII science) 1,732 1,988 3,884 2,236 C (I-XIII arts) 1,473 2,169 1,496 2,140 Type 2 (I-XI) 1,485 2,709 n.a. 1,988 Type 3 (I-VI or VIII) 1,866 1,470 n.a. 1,843 Total 1,589 2,315 5,097 2,053 n.a. Not applicable. Note: Expenditure by type of school and level of education is not available after the decentralization in 1989, when the provinces became responsible for general education schools. The table is updated to give an estimate of 1991 expenditure by using the elasticities of the unit cost in the different types of school and levels of education. Source: ADB (1989, table 12.3). Table 5-16. Provincial per Capita Income and Selected Education Indicators, 1991 Average Unit cost of Percentage of teacher's Shortage of instructional unqualified salary teachers materials Province teachers (SL Rs/year) (%) (SL Rs) Western 14.49 42,068 8.04 2.99 Northwestern 27.42 29,835 4.59 3.73 Sabaragamuwa 26.87 31,277 5.61 4.80 Northeastern 29.40 33,915 33.88 1.00 Central 39.81 32,539 10.88 1.60 Uva 29.88 21,625 12.54 1.76 Southern 41.45 29,722 0.23 1.20 North Central 35.63 27,161 9.10 2.81 Source: Per capita income: Salagado (1989); education indicators: MOEHE. 192 Table 5-17. Recurrent Expenditure on Higher Education, 1987-92 (SL Rs thousands) Year Nominal value GDP deflator Real value Growth rate 1987-92 1987 318,119 1.533 207,514 n.a. 1988 411,903 1.710 240,879 n.a. 1989 573,575 1.874 306,070 n.a. 1990 644,136 2.248 286,537 n.a. 1991 763,170 2.504 304,780 n.a. 1992a 1,000,000 2.760 362,319 11.79 n.a. Not applicable. a. 1992 budget allocations. Source: Selected annex 3 tables. Table 5-18. Enrollment and Cost Estimates for Higher Education, 1991 Enrollment Unit cost Total cost Facility (numbers) (SL Rs thousands) (SL Rs thousands) Universities Science-based' 13,895 32.70 454,367 Arts-basedb 11,847 14.70 174,151 Total university 25,742 24.42 628,518 Open University 12,000 6.07 72,895 Institutes 2,500 34.86 87,141 Affiliated university colleges 2,500 25.78 64,446 UGC n.a. n.a. 17,000 Total 42,742 20.35 870,000 n.a. Not applicable. Table 5-19. Higher Education Enrollment and Cost Projections, 1991-2000 Growth rate (%) Category 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 1991-95 1995-2000 1991-2000 Scenario I Enrollment (number of students) Science-based 13,895 14,173 14,456 14,745 15,040 15,341 15,648 15,961 16.280 16,606 2.00 2.00 200 Art-based 11,847 12,084 12,326 12,572 12,824 13,080 13,342 13,608 13,881 14,158 2.00 200 2.00 Total university 25,742 26,257 26,782 27,318 27,864 28,421 28,990 29,569 30,161 30,764 2.00 2 00 2.00 Open University 12,000 12,240 12,485 12,734 12,989 13,249 13,514 13,784 14,060 14,341 200 2.00 2.00 Institutes 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 0 00 0 00 0 00 Affilated university colleges 2,500 3.375 4,556 6,151 8,304 11,210 15,134 20,430 27,581 37,234 3500 3500 35.00 Total 42,742 44,372 46,323 48,703 51,657 55,380 60,137 66,284 74.302 84,840 4.85 1043 7.92 Cost (SL Rs thousands) Science-based 454 463 473 482 492 502 512 522 532 543 2 00 2.00 2 00 Art-based 174 178 181 185 189 192 196 200 204 208 2.00 2.00 2.00 Total university 629 641 654 667 680 694 708 722 736 751 2 00 2.00 2 00 Open University 73 74 76 77 79 80 82 84 85 87 200 2.00 200 Institutes 87 87 87 87 87 87 87 87 87 87 000 0.00 000 Affilated university colleges 64 87 117 159 214 289 390 527 711 960 35.00 35.00 35.00 Total 853 890 934 990 1,060 1,151 1,267 1,419 1,620 1,885 5.59 1l.20 9.21 Scenario 2 Enrollment (number of students) Science-based 12,309 13,294 14,357 15,506 16,746 18,086 19,533 21,095 22,783 24,606 8.00 800 8 00 Art-based 10,917 11,135 11,358 11,585 11,817 12,053 12,294 12,540 12,791 13,047 2.00 2.00 200 Total university 23,226 24,429 25,715 27,091 28,563 30,139 31.827 33,636 35,574 37,653 5 31 5 68 5.51 Open University 12,000 12,240 12,485 12,734 12,989 13,249 13,514 13,784 14,060 14,341 2.00 2.00 2.00 Institutes 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 0 00 0.00 0.00 Affilated university colleges 2,500 3,375 4,556 6,151 8,304 11,210 15,134 20,430 27,581 37,234 35.00 3500 35.00 Total 40,226 42,544 45,256 48,476 52,356 57,098 62,975 70,350 79,715 91,728 681 11.87 9.59 Cost (SL Rs thousands) Science-based 403 435 469 507 548 591 639 690 745 805 8.00 8 00 8.00 Art-based 160 164 167 170 174 177 181 184 188 192 2.00 2.00 2.00 Total university 563 598 636 677 721 769 819 874 933 996 6 39 6 67 6.55 Open University 73 74 76 77 79 80 82 84 85 87 2.00 2 00 2.00 Institutes 87 87 87 87 87 87 87 87 87 87 0.00 0 00 0.00 Affilated university colleges 64 87 117 159 214 289 390 527 711 960 35 00 35 00 35 00 Total 787 847 917 1,000 1,101 1,225 1,379 1,572 1,817 2,130 8.75 14 11 11 69 Notes: For an explanation of the scenarios see chapter 5. Cost projections are based on enrollment projections and unit costs. Source: MOEHE and World Bank population projections. 194 Table 5-20. Enrollment Projections by Education Level, Base Run, 1991-2000 (number of students) Year Sex 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 I Male 211,431 207,899 203,804 199,751 195,777 191,881 188,063 184,321 180,653 177,058 Female 199,050 196,423 192,556 188,706 184,931 181,231 177,605 174,052 170,570 167.158 Total 410,481 404,322 396,360 388,458 380,708 373,112 365,668 358,373 351,223 344,216 U Male 218,409 219,310 216,097 211,950 207,750 203,618 199.567 195,596 191,704 187,889 Female 201,682 203,414 201,038 197,193 193,263 189,398 185,609 181,895 178.256 174,690 Total 420,091 422,725 417,135 409,144 401,014 393,016 385,176 377,491 369,960 362,579 I Male 219,721 217,014 217,541 214,732 210,750 206,602 202,497 198,469 194,520 190,649 Female 202,693 199,738 201,115 199,033 195,354 191,481 187,654 183,900 180,221 176,615 Total 422,414 416,752 418,657 413,765 406,104 398,083 390,151 382,369 374,741 367,264 IV Male 218,446 215,193 212,482 212,659 210,220 206,480 202,457 198,443 194,497 190,627 Female 202,509 197,816 194,812 195,854 194,037 190,574 186,823 183,093 179,431 175,841 Total 420,955 413,008 407,294 408,513 404,256 397,054 389,280 381,536 373,928 366,468 V Male 210,381 207,024 203,921 201,309 201,229 199,119 195,707 191,936 188,140 184,401 Female 196,732 193,860 189,468 186,504 187,263 185,675 182,467 178,902 175,335 171,828 Total 407,113 400,884 393,389 387,813 388,491 384,793 378,174 370,838 363,475 356,229 Total primary Male 1,078,388 1,066,440 1,053,845 1,040,401 1,025,726 1,007,700 988,291 968,765 949,514 930,624 Female 1,002,666 991,251 978,989 967,290 954,848 938,359 920,158 901,842 883,813 866,132 Total 2,081,054 2,057,691 2,032,834 2,007,691 1,980,574 1,946,059 1,908,449 1,870,607 1,833,327 1,796,756 Growth rate (%) n.a. n.a. n.a. n.a. -1.23 n.a. n.a. n.a. n.a. -1.93 VI Male 192,986 196,612 193,998 191,116 188,637 188,374 186,533 183,445 179,950 176,401 Female 184,977 186,921 184,415 180,320 177,441 177,990 176,579 173,608 170,239 166,849 Total 377,963 383,533 378,413 371,436 366,078 366.364 363,112 357,053 350,189 343,251 VII Male 170,535 175,814 179,242 177,205 174,610 172,327 171,964 170,363 167,617 164,454 Female 167,921 174,121 176,129 173,941 170,148 167,390 167,777 166,515 163,776 160,618 Total 338,456 349,935 355,370 351,145 344,757 339,717 339,741 336,878 331,393 325,071 VIII Male 152,280 154,761 159,458 162,638 160,999 158,672 156,589 156,186 154,775 152,328 Female 155,090 157,809 163,549 165,548 163,609 160,089 157,470 157,747 156,603 154,069 Total 307,370 312,571 323,007 328,186 324,608 318,762 314,058 313,932 311,378 306,397 Total lower Male 515,801 527,187 532,698 530,959 524,246 519,373 515,086 509,994 502,342 493,183 secondary Female 507,988 518,851 524,093 519,809 511,198 505,469 501,826 497,870 490,618 481,536 Total 1,023,789 1,046,038 1,056,791 1,050,768 1,035,444 1,024,842 1,016,912 1,007,864 992,960 974,719 Growth rate (%) n.a. n.a. n.a. n.a. 0.28 n.a. n.a. n.a. n.a. -1.20 IX Male 133,413 136,353 138,596 142,748 145,634 144,292 142.229 140,357 139,952 138,713 Female 138,364 145,144 147,816 153,116 155,089 153,382 150,129 147,651 147,831 146,796 Total 271,777 281,497 286,412 295,864 300,724 297,674 292,359 288,008 287,783 285,509 X Male 115,117 130,167 133.248 135,456 139,484 142,326 141,084 139,081 137,247 136,827 Female 123,422 126,424 132,583 135,069 139,885 141,724 140,204 137,249 134,976 135,111 Total 238,539 256,591 265,830 270,525 279,368 284,050 281,289 276,330 272,223 271,938 XI Male 155,336 159,766 175,843 183,730 188,282 193,604 197,999 198,115 196,189 193,810 Female 178,002 192,826 201,724 211,353 217,660 224,928 229,653 230,052 227,304 223,965 Total 333,338 352.592 377,567 395,082 405,942 418,532 427,652 428,167 423,493 417,776 Total upper Male 403,866 426,286 447,687 461,934 473,400 480,222 481,312 477,553 473,388 469,350 secondary Female 439,788 464,394 482,123 499,538 512,634 520,034 519,986 514,952 510,111 505,872 Total 843,654 890,680 929,810 961,472 986,034 1,000,256 1,001,298 992,505 983,499 975,222 Growth rate (%) n.a. n.a. n.a. n.a. 3.98 n.a. n.a. n.a. n.a. -0.22 Continued 195 Table 5-20. Continued Year Sex 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 XII Science Male 10,656 10,803 10,912 11,021 11,132 11,243 11,355 11,469 11,584 11,699 Female 8,810 8,959 9,050 9,140 9,231 9,324 9,417 9,511 9,606 9,702 Total 19,466 19,762 19,962 20.161 20,363 20,567 20,772 20,980 21,190 21,401 XIII Science Male 16,169 14,992 14,723 14,729 14,828 14,960 15,104 15,253 15,405 15,559 Female 14,088 13,208 13.012 13,019 13,103 13,216 13,342 13,473 13,607 13,742 Total 30,257 28,200 27,735 27,748 27,931 28,176 28,446 28,726 29,012 29,301 XII Arts Male 11,845 11,989 12,110 12,231 12.353 12,476 12,601 12,727 12,854 12,983 Female 26,358 26,668 26,936 27,205 27,477 27,752 28,029 28,309 28,593 28,878 Total 38,203 38,657 39,046 39,436 39,830 40,228 40,630 41.036 41,447 41,861 XIII Arts Male 12,894 15,738 16,980 17,574 17,916 18,160 18,367 18,560 18,750 18,939 Female 26,209 33,890 37,201 38,748 39,600 40,179 40,653 41,088 41,510 41,930 Total 39,103 49,628 54,181 56,322 57,516 58,339 59,020 59,648 60,260 60,869 XII Commerce Male 11,297 11,464 11,579 11,695 11,812 11.930 12,049 12,170 12,292 12,414 Female 11,980 12,110 12,232 12,354 12,477 12,602 12,728 12,855 12,984 13,113 Total 23,277 23,574 23,811 24,049 24,289 24,532 24,777 25,025 25,276 25.527 XIII Commerce Male 15,026 15,645 16,018 16,256 16,446 16,620 16,790 16,959 17,129 17,300 Female 16,235 16,886 17,246 17,490 17,692 17,878 18,061 18,243 18,426 18,610 Total 31,261 32,531 33,264 33,746 34,138 34,498 34,851 35,202 35,555 35,910 Total A/L Male 77,887 80,631 82,322 83,506 84,487 85,389 86,266 87,138 88,014 88,894 Female 103,680 111,721 115,677 117,956 119,580 120,951 122,230 123,479 124,726 125,975 Total 181,567 192,352 197,999 201,462 204,067 206,340 208,496 210,617 212,740 214,869 Growth rate (%) n.a n a. n.a. n.a. 2.96 n.a. n.a. n.a. n.a. 1.04 Total general Male 2,075,942 2,100,544 2,116,552 2,116,800 2,107,859 2,092,684 2,070,955 2,043,450 2,013,258 1,982,051 education Female 2,054,122 2,086,217 2,100,882 2,104,593 2,098,260 2,084,813 2,064,200 2,038,143 2,009,268 1,979.515 Total 4,130,064 4.186,761 4,217,434 4,221,393 4,206,119 4,177,497 4,135,155 4,081,593 4,022,526 3,961,566 Growth rate (%) n.a. n.a. n.a. n.a. 0.46 n.a n.a. n.a. n.a. -1.19 Technical Male 17,290 17,340 17,390 17,440 17,490 17,540 17,591 17,641 17,692 17,743 education Female 2,021 2,027 2.032 2.038 2.043 2,049 2,054 2,060 2,066 2,071 Total 19,311 19,366 19.422 19,477 19,533 19,589 19,645 19,702 19,758 19,815 Growth rate (%) n.a. n.a. n.a. n.a. 0.29 n.a. n.a. n.a. n.a. 0.29 All levels Male 2,093,232 2,117,884 2.133,942 2,134,240 2,125,349 2,110,224 2,088,546 2,061,091 2,030,950 1,999,794 Female 2,056,143 2,088,244 2,102,914 2.106,631 2,100,303 2,086,862 2,066,254 2,040,203 2,011,334 1.981,586 Total 4,149,375 4,206,128 4,236,856 4.240,871 4,225,652 4,197,086 4,154,800 4,101,294 4,042,284 3,981,380 Growth rate (%) n.a. n.a. n.a. n.a. 0.46 n.a. n.a. n.a. n.a. -1.18 n.a. Not applicable. A/L Advanced Level. Notes: Promotion, repetition, dropout, and transition rates are assumed to remain constant. Growth rates are shown for 1991-95 and for 1995-2000. Intake in year XI is based on growth in the last five years. No significant growth in technical education enrollment is projected. Source: MOEHE and World Bank population projections. Table 5-21. Enrollment and Cost Projections by Education Level, 1991-2000 Growth rates (%) Category 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 1991-95 1995-2000 1991-2000 Enrollment (number of students) Primary I-V 2,081,054 2,057.691 2,032,834 2,007,691 1,980.574 1,946,059 1,908,449 1,870,607 1,833,327 1,796,756 -1 23 -1 93 -1 62 Lower secondary VI-VIII 1,023,789 1,046,038 1,056,791 1,050,768 1,035,444 1,024,842 1,016,912 1,007,864 992,960 974,719 028 -1.20 -054 Upper secondary IX-XI 843,654 890.680 929,810 961,472 986,034 1,000,256 1,001,298 992,505 983.499 975,222 398 -022 I 62 A/L XII-XIII 181.567 192,352 197,999 201,462 204,067 206,340 208,496 210,617 212,740 214,869 296 1 04 1 89 Total general education 4,130,064 4,186,761 4,217,434 4,221,393 4,206,119 4,177,497 4.135,155 4,081,593 4,022,526 3,961,566 046 -1 19 -0.46 Technical education 19,311 19.366 19,422 19,477 19,533 19,589 19,645 19,702 19,758 19,815 029 029 0.29 University scenario I 42742 44372 46323 48703 51657 55380 60137 66284 74302 84840 4.85 10 43 7.92 University scenario 2 42742 45206 48074 51461 55521 60455 66539 74137 83740 96010 6.76 11 58 941 Total with scenario 1 4.192,117 4,250,499 4,283,179 4,289,573 4,277,309 4.252,466 4,214,937 4,167,579 4,116,586 4,066,221 050 -1 01 -0.34 Total with scenario 2 4,192,117 4,251,333 4.284,930 4,292,331 4,281,173 4,257.541 4,221,339 4,175,432 4,126.024 4,077,391 053 -097 -0.31 Cost (SL Rs millions) Primary I-V 3,554 3,515 3,472 3,429 3,383 3,324 3,260 3,195 3,131 3,069 -1 23 -1 93 -1 62 Lower secondary VI-Vill 2,453 2,506 2,532 2,518 2,481 2,456 2,437 2,415 2,379 2,335 0 28 -1 20 -0.54 Upper secondary IX-XI 2,021 2,134 2,228 2,304 2,363 2,397 2,399 2,378 2,356 2.337 3 98 -022 1 62 A/L XII-XIII, 435 461 474 483 489 494 500 505 510 515 296 I 04 1 89 Total general education 8.464 8,616 8,706 8,733 8,715 8,670 8,595 8.493 8,377 8,256 0 73 -1 08 -0 28 Technical education 132 132 132 133 133 133 134 134 135 135 029 029 029 University scenario ] 802 833 870 914 970 1.040 1,129 1,244 1,395 1,593 4 85 1043 7.92 University scenario 2 802 849 903 966 1.042 1,135 1,249 1,392 1.572 1,802 6 76 11 58 9.41 Total with scenario I 9,398 9,581 9,708 9,780 9,818 9,844 9,858 9,871 9,906 9,984 3 10 0.33 0.67 Total with scenario 2 9.398 9,596 9,741 9,832 9,891 9,939 9,978 10,019 10,083 10,193 1.29 0.60 0.91 Notes: See notes for table 5-20. Unit costs are derived for every level of education for 1991 and based on actual recurrent expenditure. Source: Same as table 5-20. Table 5-22. Enrollment and Recurrent Cost Projections by Education Level, with Quality Improvement, 1991-2000 Growth rates (%) Category 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 1991-95 1995-2000 1991-2000 Enrollment (number of students) Primary I-V 2,081,054 2,057,691 2,032,834 2,007,691 1,980,574 1,946,059 1,908,449 1,870,607 1,833,327 1,796,756 -1.23 -1.93 -1 62 Lower secondary VI-VIII 1,023,789 1,046,038 1,056,791 1,050,768 1,035,444 1.024,842 1,016,912 1,007,864 992,960 974,719 028 -1.20 -0.54 Upper secondary IX-XI 843,654 890,680 929,810 961,472 986,034 1,000,256 1,001,298 992,505 983,499 975,222 3.98 -0.22 1.62 AJL XII-XIll 181,567 192,352 197,999 201,462 204,067 206,340 208,496 210,617 212,740 214,869 296 1.04 1.89 Total general education 4,130,064 4,186,761 4,217,434 4,221,393 4,206,119 4,177,497 4,135,155 4,081,593 4,022,526 3,961,566 0.46 -1.19 -046 Technical education 19,311 19,366 19,422 19,477 19,533 19,589 19,645 19,702 19,758 19,815 0.29 0.29 0.29 University scenario 1 42742 44372 46323 48703 51657 55380 60137 66284 74302 84840 4.85 10.43 7.92 University scenario 2 42742 45206 48074 51461 55521 60455 66539 74137 83740 96010 6.76 11.58 9.41 Total with scenario 1 4,192,117 4,250,499 4,283,179 4,289,573 4,277,309 4.252,466 4,214,937 4,167,579 4,116,586 4,066,221 0.50 -1.01 -0.34 Total with scenario 2 4,192,117 4,251,333 4,284,930 4,292,331 4,281,173 4,257,541 4,221,339 4,175,432 4,126,024 4,077,391 0.53 -0.97 -0.31 Cost (SL Rs millions) Primary I-V 3,554 3,690 3,714 3,736 3,752 3,752 3,743 3,732 3,719 3,705 1.36 -0.25 0.46 Lower secondary VI-VIII 2,453 2,632 2,709 2,743 2,751 2,772 2,798 2,821 2,826 2,820 291 0.49 1.56 O Upper secondary lX-XI 2,021 2,241 2,383 2,510 2,620 2,705 2,755 2,778 2,799 2,821 6.70 1.49 3.77 A/L XII-XIII 435 484 507 526 542 558 574 589 605 622 5.66 2.77 4.05 Total general education 8,464 9,047 9,313 9,514 9,666 9,786 9,870 9,920 9,949 9,968 3.37 062 1.83 Technical education 132 132 132 133 133 133 134 134 135 135 0.29 0.29 0.29 University scenario 1 802 833 870 914 970 1,040 1,129 1,244 1,395 1,593 4.85 10.43 7.92 University scenarlo 2 802 849 903 966 1,042 1,135 1,249 1,392 1,572 1,802 676 11.58 9.41 Total with scenario I 9,398 10,012 10,315 10,561 10,768 10,960 11,133 11,299 11,479 11,696 3.46 1.67 2.46 Total with scenario 2 9,398 10,027 10,348 10,612 10,841 11,055 11,253 11,446 11,656 11,906 3.64 1.89 2.66 Notes: See notes for table 5-20. Unit costs for primary and secondary education are derived for 1991 and assumed to increase gradually by about 2 percent per year to cover quality improvements in general education (doubling expenditure on, for example, teacher training, books, and school facilities). Source: Same as for table 5-20. 198 Table 5-23. Recurrent Cost Projections for General Education with and without Efficiency Improvements, 1991-2000 Category 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Base run (SL Rs millions) Primary education 3,554 3,690 3,714 3,736 3,752 3,752 3,743. 3,732 3,719 3,705 Secondary education 4,474 4,872 5,092 5,252 5,372 5,477 5,553 5,598 5,625 5,641 A/L 435 484 507 526 542 558 574 589 605 622 Total general education 8,464 9,047 9,313 9,514 9,666 9,786 9,870 9,920 9,949 9,968 Scenario 1: efficiency improvement, reducing repetition by half (SL Rs millions) Primary education 3,554 3,663 3,654 3,642 3,625 3,601 3,587 3,576 3,563 3,550 Secondary education 4,474 4,762 4,982 5,156 5,289 5,394 5,435 5,434 5,415 5,390 A/L 435 411 412 422 434 446 458 471 484 497 Total general education 8,464 8,835 9,048 9,220 9,348 9,441 9,481 9,481 9,462 9,437 Difference (scenario 1-base run) (SL Rs millions) Primary education 0 -27 -60 -94 -127 -151 -156 -156 -156 -155 Secondary education 0 -111 -109 -96 -83 -83 -118 -164 -210 -251 A/L 0 -73 -95 -103 -108 -112 -115 -119 -122 -125 Total general education 0 -211 -265 -293 -317 -346 -390 439 -487 -531 Difference (scenario 1-base run) (%) Primary education 0 -0.74 -1.62 -2.51 -3.37 -4.03 -4.17 -4.19 -4.19 -4.19 Secondary education 0 -2.27 -2.15 -1.83 -1.54 -1.51 -2.13 -2.94 -3.73 -4.45 A/L 0 -15.15 -18.71 -19.66 -19.95 -20.05 -20.09 -20.10 -20.11 -20.11 Total general education 0 -2.34 -2.84 -3.08 -3.28 -3.53 -3.95 -4.43 -4.90 -5.33 Notes: See notes for table 5-22. Source: Same as for table 5-20. 199 Table 5-24. Recurrent Cost Projections for General Education with and without Improving Teacher Utilization, 1991-2000 Category 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Base run (SL Rs millions) Primary 3,554 3,690 3,714 3,736 3,752 3,752 3,743 3,732 3,719 3,705 Secondary 4,474 4,872 5,092 5,252 5,372 5,477 5,553 5,598 5,625 5,641 A/L 435 484 507 526 542 558 574 589 605 622 Total general education 8,464 9,047 9,313 9,514 9,666 9,786 9,870 9,920 9,949 9,968 Scenario 2: improving teacher utilization (increasing the student/teacher ratio) (SL Rs millions) Primary 3,561 3,610 3,557 3,506 3,453 3,453 3,445 3,434 3,423 3,410 Secondary 4,482 4,540 4,459 4,352 4,235 4,318 4,378 4,414 4,435 448 A/L 436 414 386 364 348 358 368 378 388 399 Total general education 8,478 8,528 8,342 8,146 7,948 8,040 8,101 8,134 8,152 8,160 Difference (scenario 2-base run) (SL Rs millions) Prunary 6 -80 -157 -230 -299 -299 -298, -298 -296 -295 Secondary 7 -332 -633 -900 -1,137 -1,159 -1,175 -1,184 -1,190 -5,193 A/L 1 -70 -121 -162 -194 -200 -206 -211 -217 -223 Total general education 14 -519 -971 -1,368 -1,718 -1,746 -1,769 -1,786 -1,797 -1,808 Difference (scenario 1-base run) (%) Prunary 0 -2.17 -4.23 -6.15 -7.96 -7.96 -7.97 -7.99 -7.97 -7.97 Secondary 0 -6.81 -12.42 -17.14 -21.16 -21.16 -21.16 -21.16 -21.15 -92.06 A/L 0 -14.47 -23.94 -30.78 -35.82 -35.85 -35.85 -35.87 -35.91 -35.81 Total general education 0 -5.74 -10.43 -14.37 -17.77 -17.85 -17.93 -18.00 -18.07 -18.14 Notes: See notes for table 5-22. Costs in every education level were adjusted for teacher demand reduction in scenario 2 according to the salaries component in their recurrent expenditure. Teacher requirement projections are based on enrollment projections and student teacher ratios. In the base run, teacher demand is derived without any change in the current student teacher ratio, and in scenario 2, the student teacher ratio is assumed to increase gradually from thirty-one to thirty-five in primary schools, from twenty-one to thirty in years VI-XI, and from twelve to twenty-five in years XII-XII. Source: Same as for table 5-20. 200 Figure 5-8. Enrollment Projections by Level, 1991-2000 Thousands of students 2500 2000 1500 1000 500 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 A/L, XII-XIII M Secondary, IX-XI E Secondary, VI-VIII E Primary, I-V Source: Table 5-20. Table 5-25. Recurrent Cost Projections for General Education with and without Improving Teacher Utilization, 1991-2000 Growth rates (%) category 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 1991-95 1995-2000 1991-2000 Base run (SL Rs millions) Primary 66,980 66,228 65,428 64,618 63,746 62,635 61,424 60,206 59,006 57,829 -1.23 -1.93 -1.62 Secondary 88,673 91,962 94,330 95,548 95,987 96,159 95,831 94,984 93,849 92,590 200 -0.72 0.48 A/L 14,678 15,550 16,006 16,286 16,497 16,681 16,855 17,026 17,198 17,370 2.96 1.04 1.89 Total general education 170,331 173,740 175,764 176,452 176,230 175,475 174,110 172,216 170,053 167,789 0.85 -0.98 -0.17 Scenario 2: improving teacher utilization (increasing the student/teacher ratio) (SL Rs millions) Primary 66,980 64,198 61,536 59,019 56,588 55,602 54,527 53,446 52,381 51,336 -4.13 -1.93 -2.91 Secondary 88,673 83,139 77,814 72,474 67,383 67,503 67,274 66,679 65,882 64,998 -6.63 -0.72 -3.39 A/L 14,678 12,388 10,597 9,223 8,163 8,254 8,340 8,425 8,509 8,595 -13.64 1.04 -5.77 Total general education 170,331 159,725 149,947 140,716 132,134 131,359 130,141 128,550 126,772 124,929 -6.15 -1.12 -3.39 Difference (scenario 2-base run) (SL Rs millions) Primary 0 -2,030 -3,892 -5,599 -7,158 -7,033 -6,897 -6,760 -6,625 -6,493 n.a. n.a. n.a. Secondary 0 -8,823 -16,516 -23,074 -28,604 -28,656 -28,557 -28,305 -27,967 -27,592 n.a. n a. n.a. A/L 0 -3,162 -5,409 -7,063 -8,334 -8,427 -8,515 -8,601* -8,689 -8,775 n.a. n a n.a. Total general education 0 -14,015 -25,817 -35,736 -44,096 -44,116 -43,969 -43,666 -43,281 -42,860 n.a. n a. n.a. Difference (scenario 2-base run) (%) Primary 0 -3.07 -5.95 -8.66 -11 23 -11.23 -11.23 -11.23 -11 23 -11.23 n.a. n a. n.a. Secondary 0 -9.59 -17.51 -24.15 -29.80 -29 80 -29.80 -29.80 -29.80 -29.80 n.a. n a. n.a A/L 0 -20.33 -33.79 -43.37 -50 52 -50.52 -50.52 -50.52 -50.52 -50.52 n.a. n a. n a Total general education 0 -8.07 -14.69 -20.25 -25.02 -25.14 -25.25 -25.36 -25.45 -25.54 n a n a. n a n.a. Not applicable. Notes: See notes for table 5-23. Source: Same as for table 5-19. 202 B. MOEHE Budget Details Table 5-26. Education Cost by Level, 1991 and 1992 (SL Rs thousands) 1991 1992 MOE and MOE and As a percentage Education level MOEHE Provinces Provinces MOEE Provinces Provinces of total Recurrent expenditure General education 3.158,284 5,304,783 8,463,067 3,868.35 6,121.211 9,989,566 89.26 Technical educanon (techmical colleges) 131,582 n.a. 131.582 201,675 n.a. 201,675 1.80 University 802,431 n.a. 802,431 1,000,00 n.a. 1,000,000 8.94 Total 4.092.297 n.a. 9,397,080 5,070,03 n.a. 11,191,241 100.00 Capital expenditure General education 1,263.378 n.a. 1.263,378 1,486,70 n.a. 1.486,700 59.43 Technical education (technical colleges) 128,970 n.a. 128,970 415,000 n.a 415,000 16.59 University 395,000 n.a. 395,000 600,000 n.a. 600.000 23.98 Total 1,787,348 n.a. 1,787,348 2,501,70 n.a. 2,501,700 100.00 Recurrent and capital expenditure General education 4,421,662 n.a. 9,726,445 5,355,05 n.a 11,476,266 83.81 Technical education (technical colleges) 260.552 n.a. 260.552 616,675 n.a. 616,675 4.50 University 1,197,431 n.a. 1,197,431 1,600,00 n.a. 1,600,000 11.68 Total 5,879.645 n.a. 11.184,428 7,571,73 n.a. 13,692,941 100.00 Real term growth Growth rate Recurrent expenditure General education n.a. n.a. 8.463,067 n.a. n.a. 8,890,714 4.87 Technical education (technical colleges) n.a. n.a. 131,582 n.a. n.a. 179.491 -2.94 University n.a. n.a. 802,431 n.a. n.a. 890,000 10.56 Total n.a. n.a. 9,397,080 n.a. n.a. 9,960,204 5.20 Capital expenditure General education n.a. n.a. 1,263,378 n.a. n.a. 1,323,163 -13.49 Technical education (technical colleges) n.a. n.a. 128,970 n.a. n.a. 369,350 -6.86 University n.a. n.a. 395,000 n.a. n.a. 534,000 78.00 Total n.a. n.a. 1,787,348 n.a. n.a. 2,226.513 0.02 Recurrent and capital expenditure General education n.a. n.a. 9,726.445 n.a. n.a. 10,213.877 2.07 Technical education (technical colleges) n.a. n.a. 260.552 n a. n.a. 548,841 -5.61 University n.a. n.a. 1,197.431 n.a. n.a. 1,424,000 28.87 Total n.a. n.a. 11,184,428 n.a. n.a. 12.186,717 4.22 n.a. Not available. a. Prices increased by 11 percent between 1991 and 1992. Source: MOEHE. 203 Table 5-27. Estimated Budget of MOECA of Examinations and Publications Departments, 1991 and 1992 (SL Rs thousands) Program/project 1991 1992 Examinations Department Recurrent expenditure Administration and evaluation of examinations 167,973 218,403 Capital expenditure Administration and evaluation of examinations 14,000 20,000 Rehabilitation and improvement of capital assets 800 1,500 Acquisition of equipment 13,200 18,500 Recurrent and capital expenditures 181,973 238,403 Educational Publications a Recurrent expenditure Production of school and higher education books 3,354 4,076 Capital expenditure Production of school and higher education books 1,000 1,300 Rehabilitation and improvement of capital assets 80 150 Acquisition of equipment 920 1,150 Recurrent and capital expenditures 4,354 5,376 a. Does not include the cost of printing and publication of textbooks by the commissioner of education publications, estimated at SL Rs 225 million for 1992. Actual expenditure in 1991 was Rs 272 million, expenditure budgeted for 1991 was SL Rs 180 million, then revised to 279 million. Source: MOEHE. 204 Table 5-28. MOEHE Recurrent Budget by Type of Expenditure, 1992 Program/tvpe of expenditure SL Rs thousands Percent General administration and staff services Personnel emoluments 20,427 1.20 Travel expenses 2,290 0.13 Supplies and requisites 3,993 0.23 Repairs and maintenance 4,810 0.28 Transport, communications, and utilities 10,065 0.59 Grants and contributions 1,661,409 97.56 Total 1,702,994 100.00 General education Personnel emoluments 860,824 47.22 Travel expenses 1,910 0.10 Supplies and requisites 7,922 0.43 Repairs and maintenance 1,700 0.09 Transport, communications, and utilities 33,225 1.82 Other services 89,534 4.91 Grants and contributions 827,946 45.42 Total 1,823,061 100.00 Teacher education Personnel emoluments 90,844 76.35 Travel expenses 160 0.13 Supplies and requisites 1,382 1.16 Repairs and maintenance 1,300 1.09 Transport, communications, and utilities 22,805 19.17 Grants and contributions 2,500 2.10 Total 118,991 100.00 Higher education (technical colleges) Personnel emoluments 92,586 45.91 Travel expenses 1,165 0.58 Supplies and requisites 17,611 8.73 Repairs and maintenance 2,800 1.39 Transport, communications, and utilities 48,920 24.26 Grants and contributions 23,593 11.70 Interest payment, Dividends & Bonus 15,000 7.44 Total 201,675 100.00 Education services Personnel emoluments 600 72.29 Travel expenses 10 1.20 Supplies and requisites 120 14.46 Repairs and maintenance 100 12.05 Total 830 100.00 All programs 3,847,551 Source: MOEHE. 205 Table 5-29. MOE Recurrent Budget by Type of Expenditure for MOEHE and Provinces, 1992 SL Rs thousands Percentage of total Central Central and Central and Education level and type of expenditure (MOEHE) Provincial provincial Central Provincial provincial General administration, general education, technical education, and education services Personnel emoluments 972,695 5,963,535 6,936,230 26.68 97.42 71.02 Travel expenses 4,370 17,347 21,717 0:12 0.28 0.22 Supplies and requisites 13,417 23,679 37,096 0.37 0.39 0.38 Repairs and maintenance 7,910 9,295 17,205 0.22 0.15 0.18 Transport, communications, and utilities 66,095 77,062 143,157 1.81 1.26 1.47 Grants and contributions 2,491,855 30,293 2,522,148 68.35 0.49 25.82 Other services 89,534 n.a. 89,534 2.46 0.00 0.92 Total 3,645,876 6,121,211 9,767,087 100.00 100.00 100.00 Technical education (technical colleges) Personnel emoluments 92,586 n.a. n.a. n.a. n.a. n.a. Travel expenses 1,165 n.a. n.a. n.a. n.a. n.a. Supplies and requisites 17,611 n.a. n.a. n.a. n.a. n.a. Repairs and maintenance 2,800 n.a. n.a. n.a. n.a. n.a. Transport, communications, and utilities 48,920 n.a. n.a. n.a. n.a. n.a. Grants and contributions 23,593 n.a. n.a. n.a. n.a. n.a. Interest payment, Dividends and Bonus 15,000 n.a. n.a. n.a. n.a. n.a. Total 201,675 n.a. n.a. n.a. n.a. n.a. Total general and technical 3,847,551 n.a. n.a. n.a. n.a. n.a. n.a. Not applicable Source: MOEHE. 206 C. Teachers Employed 1. The total number of teachers in Sri Lanka increased from 142.000 to 176,000 between 1985 and 1992, at a rate of 3 percent per year. The number remained almost constantdunng 1985-88, and fluctuated substantially dunng 1989-92. The governmentrecruited a massive number of teachers (37,000) during 1989 and 1990 to ease the increasing white collar unemploymentand to fill the accumulated needs, mostly in prunary schools, caused by the continuous decline in earlier years. Of this increase, 25,000 teachers were recruited in 1990 as trainees, that is, with a monthly salary of SL Rs 1,500. Those trainees are expected to become regular teachers after four years (by 1994), when they will receive a full salary of SL Rs 2,400 per month. 2. In an effort to restructure public sector employment, the government introduced financial incentives for early retirement in October 1990. The package included a pension salary determined by the number of service years and a generous bonus equivalent to thirty months salary. As a result, about 12,000 teachers, mostly qualified (trained and university graduates) left the service, and the total number of teachers declined by about 8.000 between 1990 and 1991. This created immediate shortages of secondary and primary teachers in urban areas and accentuated the need in remote and rural areas. 3. During 1992, the Ministry of Education and Higher Education (MOEHE) recruited an additional 15,000 teachers, including 1,000 unversity graduates and 12,000 trainees who will become teachers by 1996. Furthermore, the MOEHE recruited 5,000 university graduates as teachers during the first few months of 1993 and was processing the appomnents of 1,500 English teachers and 1,220 graduates of the colleges of education to fill the previous year's vacancies. The total number of teachers recruited in 1993 was 11,160. 4. In summary, the net number of teachers added during 1989-92 and early 1993 was almost 40,000, that is, an average of 10,000 teachers per year, representing 28 percent of the total teachers in 1989 or 6 percent per year. The large majority of the teachers recruited are women (75 percent) with secondary education (Advanced and Ordinary levels). Age Profile of Teachers 5. The teachers' age and sex composition (figure 5-9) reflects the massive recruinent in recent years of young, female teachers mostly recruited for primary schools. Females teachers who represent more than two-thirds of total teachers, are much younger than men teachers. In 1991, the median age for women teachers was thirty-one years and for men teachers was thirty-nine. In general, older teachers are more prevalent in urban areas. Teachers older than forty represent almost half the teachers in the highly urban Western Province, and less than one-fourth of the teachers m the mostly rural Uva Province. Teachers Cadre Figure 5-9. Age Profile of Teachers by Gender, 1991 Percent 40 --- -- 10- O0- Women 0 /Men Under 20 21-30 31-40 41-50 51-60 over60 Age (years) 207 6. Teacher cadre is a detailed and elaborate process carned out by the MOEHE to identify the shortages and surpluses of teachers on a district, provincial, and national level. The cadre was first established in 1983 as schools were requested to estimate their teacher needs according to criteria set by the MOEHE. These criteria include the number of students, classes, and subjects for different grades 7. The cadre is aggregated on divisional and provincial levels and sent to the MOEHE's Planning and Policy Department. Teacher needs are then compiled on a national level and reported to the Education Service Board, which in turn embarks on recruitment after the cabinet's approval. 8. Teacher needs are assessed by comparing the cadre with the available number of teachers in the schools. Such comparison usually reveals the shortages and surpluses of teachers for every distnct and province. The provincial departments of education are required to use the teacher surpluses to fill, where possible, some of their needs. Since 1983, the teacher shortages and surpluses have been revised annually according to the cadre, the changes in teacher attrition, and the schools' emerging needs. The MOEHE uses these shortages and surpluses as the basis for teacher recruitment. 9 According to the 1991 cadre, the total teacher deficit was 18,000 and the excess was 6,000 teachers. In 1992, the cabinet approved the recruitment of 15.000 teachers to fill the shortages shown by the 1991 cadre, taking into consideration that half of the surpluses were expected to be redistributed to fill some of the needs. 10. The 1991 cadre also showed different patterns of teacher shortages and surpluses among the provinces. The high concentration of older teachers in the Western Province led to more retirements and produced teacher shortages in that province. Furthermore, the continuous shortages of Tamil-language teachers mostly needed in the plantation sector has led to substantial shortages in the Central, Northern, and Eastern provinces. Large numbers of Tamil-language teachers have left these provinces to come to Candy, Colombo, and other urban areas, some of them as refugees. By contrast, the highly populated and urban areas of the Southern Province attracted large numbers of education staff and led to a teacher surplus in that province. Teachers' Qualifications 11. The four major categories of teachers' qualifications are university graduates and one-year postsecondary diploma; trained teachers, mostly through the teacher trainung colleges and distance education; certificated teachers (those who pass the examination given by the MOEHE); and untrained teachers with secondary education (Advanced or Ordinary level). 12. The qualification composition of teachers has changed substantially as a result of the retirement and recruitment policies during the past five years. The massive retirement of university graduates and trained teachers led to a decline in the share of qualified teachers and a corresponding increase in the share of unqualified teachers. During 1988-92, the proportion of university graduates and trained teachers declined from 82 percent to 68 percent, meanwhile the proportion of untrained teachers with Ordinary and Advanced level increased from 11 percent to 28 percent (figure 5-10.) 13. Furthermore, recent recruitment policies have not sufficiently changed the large discrepancies in the distribution of qualified teachers' among the provinces. The provincial distribution pattern (table 5-30) show that urban provinces have lugher concentrations of qualified teachers than rral and remote provinces. For example, qualified teachers (graduates, trained, and certificated) represent 86 percent of the total teachers in the Western Province but 58 percent of the teachers in the North-Central Province. Teacher Absenteeism 14. On average, teachers take thirty days leave (official or unofficial) per year, 16 percent of school working days. Qualified teachers take more leave than unqualified, and teachers working in rural areas take more than those in urban areas. 208 Figure 5-10. Teachers' Qualifications, 1988 and 1992 Other Other 6% O/L and A/L 4% 11% O/L and A/L U niversity U nive gSi ty28 25% 23% Technical education 58% Technical educeiton 45% 1988 1992 209 Table 5-30. Teachers by Qualfications and Provinces, 1991 University University Province graduate diplomates Trained Certified OL/AL Maulavia Other Total No. of teachers Western 9,873 100 18,081 1,197 4,799 37 122 34,209 Central 5,181 19 11,072 1,128 6,452 46 76 23,974 Southern 6,523 23 11,325 1,105 6,891 9 74 25,950 Northern 1,977 7 4,850 227 2,820 14 106 10,001 Eastern 1,710 1 4,073 541 4,048 69 66 10,508 Northwestern 5,227 18 9,820 763 6,588 31 126 22,573 North Central 2,462 2 3,732 641 4,799 7 34 11,677 Uva 2,704 7 4,700 614 4,350 10 82 12,467 Sabaragamuva 3,755 15 8,542 1,216 5,797 14 37 19,376 Total 39,412 192 76,195 7,432 46,544 237 723 170,735 Percentage distribution Western 25.1 52.1 23.7 16.1 10.3 15.6 16.9 20.0 Central 13.1 9.9 14.5 15.2 13.9 19.4 10.5 14.0 Southern 16.6 12.0 14.9 14.9 14.8 3.8 10.2 15.2 Northern 5.0 3.6 6.4 3.1 6.1 5.9 14.7 5.9 Eastern 4.3 0.5 5.3 7.3 8.7 29.1 9.1 6.2 Northwestern 13.3 9.4 12.9 10.3 14.2 13.1 17.4 13.2 North Central 6.2 1.0 4.9 8.6 10.3 3.0 4.7 6.8 Uva 6.9 3.6 6.2 8.3 9.3 4.2 11.3 7.3 Sabaragamuva 9.5 7.8 11.2 16.4 12.5 5.9 5.1 11.3 Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 a. Teachers in Moslem schools. Source: MOEHE.