[Excerpt] This report highlights several issues relating to the overall efficiency of the higher education system in Sri Lanka: (i) the lack of management autonomy, (ii) lack of accountability, (iii) lack of internationalization, (iv) lack of institutional and policy support, (v) low quality of graduate output, (vi) low quantity of research output, (vii) heavy dependence on public funds, (viii) slow expansion of postgraduate (i.e., graduate) education, (ix) poor learning environment, and (x) the absence of entrepreneurial spirit.