• IPS says govt. must look at promoting private investments in general education and should consider new approaches
• Says must take measures to introduce private financing to accommodate A-Level passed students to pursue higher education
• Notes introducing non-state HEI scholarships/fee subsidies for A-Level passed students is a stepping stone
• Stresses need to implement a comprehensive quality assurance system to move towards enhancing quality of higher education

Sri Lanka has not been entirely open to establishing non-state higher education institutions (HEIs), especially for the medical but facilitating such entities would help the island nation save about Rs.50 billion in foreign exchange annually, the Institute of Policy Studies (IPS) said.
The recently published State of the Economy 2023 report noted that to tackle this outflux of foreign exchange, the government must look at promoting private investments in general education and should consider new approaches like venture donors and impact investors for development assistance.
“The government’s commitment to understanding and addressing the challenges associated with PPPs will be crucial in creating a thriving and inclusive higher education landscape. 
The government should take measures to introduce private financing to accommodate A-Level passed students to pursue higher education,” the IPS said in its new report.
It added that introducing non-state HEI scholarships/fee subsidies for A-Level passed students, who are qualified to pursue higher education, is a stepping stone for this. 
According to the IPS, doing so will not only bring deserved recognition to non-state HEls but also foster healthy competition, improve the quality of education across sectors and enhance access and affordability for students.
Further, establishing a student loan system for private higher education is crucial to expand access and promote equal educational opportunities. While noting that embracing this system to support students in pursuing their educational aspirations at private institutions fosters personal and societal growth, the IPS said through these, Sri Lanka can effectively expand access to higher education, improve educational quality through healthy competition and promote equity.
Meanwhile, essential is also to implement a comprehensive quality assurance system, which will help move towards enhancing the quality of higher education and expanding higher education opportunities through private sector participation. 
Introducing such a system will ensure that educational institutions adhere to rigorous standards, leading to improved educational outcomes and a favourable environment for private sector involvement in higher education. 

“In addition, the quality assurance system ensures that both state and non-state HEls adhere to high education standards, fostering an environment of excellence and promoting the advancement of the higher education sector,” the IPS said.