Many industrial outputs of developing countries have failed to make a mark in the international markets because of the absence of welldeveloped after sale and maintenance services. The Indian auto-maker, Maruti, failed to sell its fuel economy car until Suzuki of Japan stepped in with technology and after-sale services. Therefore, without the attendant services, it is not possible for either industry or agriculture to sustain itself. Sri Lanka which is devoid of a sufficient natural resource base would find it difficult to enhance growth through industry or agriculture alone. The country’s available land is limited and its population density at 293 persons per square kilometer is one of the highest. In comparison, Canada has a density of 3, USA 31, New Zealand 14, Australia 3 and Russia 9. While the latter group of countries could  8  6  World Development Report 1987, p.39  BIS Review 4/2007  conveniently move into extensive farming, Sri Lanka’s choice is limited only to improved productivity through intensive cultivation. That again is through innovation which comes from services. The second factor that would drive Sri Lanka to the services sector is the ever rising globalization of services. In the past, services which, by nature, cannot be stored, were non-tradable. Hence, there was no any prospect of selling, services beyond the borders of a country limiting its clientele to its own citizens.
India’s ascent to a formidable global ICT power has been mainly driven by economic reforms, establishment of a free market democracy, perseverance of some unbeatable private entrepreneurs and above all, continuous human capital development in engineering and electronic fields. 10 The last development came from the high educational standards maintained by a web of reputed state owned Indian Institutes of Technology (IITs) and permission given to private sector to set up higher learning institutes. This is definitely an eye opener for Sri Lanka. Even in the midst of growing evidence from India and elsewhere that privately owned institutes of higher learning could make a significant contribution to the globalization of education and training, Sri Lanka still keeps education as a closelyguarded relic in the public sector. As a result, its capacity to meet the demand for higher education is woefully low with one place being offered to satisfy about 16 aspirants. This has led aspiring youth to seek higher education in other countries at a high personal investment cost. Since every investment should yield commensurate returns, it also has compelled them to seek employment elsewhere. Whatever the intention, the closely protected public university education system has become a waste of scarce public resources, since only a fraction of the total registered students is reported to be in 11 attendance in classes. Hence, to gain reputation as a global centre of learning, it is necessary that the Sri Lanka’s university education system should undergo a complete overhaul and reform.