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In Sri Lanka, education is held with deep reverence; it’s a cultural cornerstone and a collective pursuit that spans generations. With a literacy rate exceeding 92%, the country stands out in South Asia for its long-standing commitment to learning, rooted in both tradition and policy. From ancient monastic teachings to modern classrooms, this dedication has endured through political shifts, economic challenges, and global disruption.
Much of that progress can be traced back to C.W.W. Kannangara’s transformative free education policy in the 1940s, which laid the foundation for a system built on equal opportunity. Today, Sri Lanka’s education is not only a path to personal advancement, but a shared responsibility embraced by families, communities, and the state—anchored in the belief that learning is a public good.
Now, with a growing youth population, a rising middle class, and a hunger for globally relevant qualifications, higher education in Sri Lanka is approaching a pivotal point. The public sector, long the backbone of the system, is straining to meet the evolving expectations of students and families. In this context, the door is opening wide for innovation—and for investors ready to help shape what comes next.
Port City Colombo, Sri Lanka’s first-ever multi-service Special Economic Zone (SEZ), is emerging as one such gateway. With its dedicated Education Cluster and investor-friendly framework, it has the potential to host world-class institutions and become a hub for next-generation learning across the region.
Sri Lanka’s education sector is on a strong growth trajectory—currently valued at over US$2.7 billion (2024) and forecast to expand at a CAGR of 8–10% over the next five years. This growth is fuelled by a young population, increasing disposable incomes, and a rising demand for private and internationally aligned educational offerings.
Each year, hundreds of thousands of students sit for Sri Lanka’s G.C.E. Advanced Level (A/L) examination—the country’s primary gateway to tertiary education in Sri Lanka. In 2024 alone, over 274,000 candidates took the exam, but only around 23% of those who qualified were admitted to state universities. This leaves more than 130,000 capable students seeking alternative pathways, highlighting a significant untapped demand for quality tertiary education.
This demand is translating into new behaviours and opportunities as students turn to:
Last year, more than 20,000 Sri Lankan students pursued education abroad. This figure highlights both the strong educational aspirations of families and the need for scalable, globally aligned offerings at home.
This scenario represents an opportunity for education providers and investors. The demand is real, the culture supports it, and individuals are making financial commitments. What’s missing is scale, infrastructure, and diversity of choice—three areas private and international players are well-positioned to bring.
Beyond the growing demand, another defining feature of the current education market in Sri Lanka is its reform momentum. In 2025, the World Bank committed US$50 million in funding to strengthen teacher training, expand digital learning infrastructure, and improve equitable access. These efforts align with the national General Education Sector Development Plan (2020–2025), aimed at modernising the system and equipping students with skills for a dynamic global economy.
One of the biggest changes is the shift to a modular learning system, set to begin in 2026. Moving away from a heavily exam-focused model, the new curriculum will prioritise continuous assessment, practical skills, and creative problem-solving—aligning more closely with global learning outcomes.
The government is also actively encouraging:
Government allocations in Budget 2025 further reinforce these shifts:
Together, these moves signal an education sector that is moving beyond preserving legacy structures to actively welcoming innovation, collaboration, and capital.
As Sri Lanka moves to address growing demand for quality higher education, Port City Colombo is positioning itself as a key enabler of the sector’s next phase. Anchored within this US$15 billion Special Economic Zone, the development includes a purpose-built education zone supported by targeted policy incentives—creating an ideal environment for globally ranked institutions and strategic education investment.
The Education Cluster at Port City Colombo is specifically designed to attract a range of education providers—from global universities and technical academies to EdTech ventures and research centres. With education demand outpacing supply across the country, this cluster offers an alternative path for expansion, scale, and global integration.
Unlike conventional zones, Port City Colombo’s Education Cluster offers both physical infrastructure and policy flexibility to support long-term educational ventures. Institutions entering the zone benefit from:
These directly respond to the kinds of challenges that have slowed expansion in other parts of Sri Lanka. Port City Colombo addresses many of the common barriers for investors such as setup delays, international hiring restrictions, and capital repatriation.
For foreign universities and EdTech providers looking to expand in South Asia, it offers a compelling first-mover opportunity within a modern urban environment, supported by strategic market access, robust infrastructure, and long-term policy clarity.
While Port City Colombo’s education ecosystem will certainly serve local students, its vision extends well beyond Sri Lanka’s borders. South Asia is home to a large population of ambitious learners—particularly from countries like India, Bangladesh, Nepal, and the Maldives—who traditionally pursue higher education in destinations such as the UK, US, Australia, or Malaysia.
Port City Colombo presents a compelling alternative: world-class education delivered closer to home, within a culturally familiar, secure, and cost-effective environment.
The ambition is to replicate the global education experience in Sri Lanka, offering the same level of academic excellence, campus life, and career pathways—without the logistical and financial barriers of overseas relocation. While the offering may be positioned at a premium, it is designed to elevate the national standard and foster purpose-driven tourism—particularly educational tourism, a sector gaining global traction.
Sri Lanka’s private education ecosystem—spanning international schools, transnational degree providers, EdTech ventures, and vocational institutes—has steadily matured over the past two decades. This track record of growth, combined with Sri Lanka’s strong educational culture, sets a strong foundation for what’s possible inside Port City Colombo’s Education Cluster.
Within this purpose-built Special Economic Zone, there is a unique opportunity to scale and elevate proven models in a globally integrated setting. For example:
International schools: With rising demand for premium K–12 education, Port City Colombo is ideally positioned to attract or incubate new international school brands offering Cambridge, Edexcel, or IB curricula—especially those aiming to serve regional students from India, the Gulf, or East Africa.
Transnational higher education: Institutions currently operating through affiliated campuses in Colombo (e.g. UK- and Australia-linked programmes) can evolve into full-fledged branch campuses at Port City Colombo, taking advantage of 100% foreign ownership and long-term tax incentives.
Vocational & professional training: Skills development aligned with the digital economy, healthcare, hospitality, and logistics can find fertile ground within Port City Colombo’s innovation ecosystem—especially when paired with startup incubators, technology labs, or sector-specific accelerators.
EdTech and digital learning: With over 17 million internet users and high digital penetration, Sri Lanka is primed for digital-first learning. Port City Colombo offers a launchpad for ventures focused on test preparation, career acceleration, or AI-based tutoring.
As these segments continue to grow nationally, Port City Colombo presents the next frontier to formalise, scale, and globalise Sri Lanka’s most successful private education models under a globally competitive regulatory and operational framework.
For forward-looking investors, this means faster setup, reduced risk, and a meaningful stake in a purpose-built knowledge economy.
Sri Lanka’s education sector has always been driven by pride, ambition, and equality. What’s different now is the alignment of opportunity, policy, and infrastructure.
Port City Colombo is not only creating educational infrastructure—it is helping to build a talent pipeline for Sri Lanka’s future. By attracting global-standard institutions and enabling students to access transformative learning opportunities within their own region, the project aims to upskill the local workforce and support the SEZ’s rapidly growing business ecosystem.
A new generation of learners is seeking greater choice, relevance, and global connectivity. A government is rethinking its approach and actively welcoming innovation. Port City Colombo is designed to host the next wave of education pioneers—and serve as home to institutions ready to shape future talent and redefine higher education across South Asia.
Start where the future is being shaped. Visit Investor Relations or Contact Us to explore how your business can help shape the next chapter of Sri Lanka’s education landscape at Port City Colombo.
Shape minds. Shape futures. Shape a new city.
Port City Colombo – Where World-Class Education Meets Opportunity.
