Underfunding on education reveals systemic inequalities – Human Rights Watch Report
Sri Lanka’s public education spending is reported at only 1.5 per cent of GDP, one of the lowest globally, after years of decline from a post-independence high of 3-5 per cent. International benchmarks suggest a minimum education spending of 4-6 per cent of GDP, highlighting a significant shortfall in Sri Lanka’s investment in education.
While there are strong foundations like high literacy and enrollment, the underfunding is revealing systemic inequalities, stated Sarah Saadoun, Senior Researcher and Advocate at the Human Rights Watch (HRW).

HRW's Sarah Saadoun speaking. Pic by Akila Jayawardena.
Last week the HRW launched a report titled ‘Tax Giveaways, Struggling Schools: How Low Taxes Drove Sri Lanka’s Economic Crisis and Squandered its Education Lead’ at the BMICH in Colombo.
Ms. Saadoun in her presentation illustrating the deep connection between taxation and economic and social rights in Sri Lanka, mentioned, “Low revenues have contributed to Sri Lanka’s economic crisis in 2022, exacerbating human rights issues. Decades of tax policies favouring corporations and the wealthy have led to chronic underfunding in essential public sectors like education.”
“Why is Sri Lanka spending so little on education? Shift towards low taxes and corporate tax exemptions began in the late 1970s, prioritising growth over social welfare. Reliance on regressive taxes disproportionately burden the poorest, while wealthier individuals benefit minimally. What is the impact of low spending on education? Schools forced to rely on minimal government funding, leading to disparities – wealthier alumni provide resources unavailable in poorer schools. Rise of private tuition, exacerbated by low teacher salaries and increased living costs, creates widening disparities among students,” she noted.
Sri Lanka’s challenges are reflective of a global tax competition environment leading to decreased public investment capabilities. Two critical international developments may assist Sri Lanka in reforming its tax system to meet human rights obligations: Ongoing negotiations for a UN tax convention on international cooperation, emphasising a shift away from Organisation for Economic Corporation Development’s dominance; and development of metrics for economic progress beyond GDP, advancing a more equitable economic framework, stressed Ms. Saadoun.
Meanwhile Federico Borello, Interim Executive Director at HRW in his address urged the Sri Lankan government to reveal truths about historical disappearances and hold responsible parties accountable, highlighting the need for a robust process to confront the legacy of protecting human rights violators.
On a global context of human rights violations, he cited worsening conditions in various regions: Russia’s actions in Ukraine, human rights abuses in Palestine, ongoing violence in Sudan and Haiti and conditions in Afghanistan and Myanmar.
With regards to the Sri Lanka’s economic crisis, he mentioned, “The aftermath of the 2022 economic crisis was largely fuelled by prior tax policies and prevalent corruption and there is a need to acknowledge public unrest during the Aragalaya movement that called for systemic change.”
Sri Lanka has the potential to set a precedent for economic justice and accountability in governance. The new government is expected to adopt policies focused on human rights rather than growth at the expense of public welfare, noted Mr. Borello.
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