Assessing the Comparative Efficiency of State universities in Sri Lanka Using Data Envelopment Analysis

Abstract

In Sri Lanka, currently fifteen state universities operate under the apex body of University Grants Commission (UGC) in Sri Lanka. Planning and coordination of university education, allocation of funds, maintenance of academic standards, and regulation of the administration of those universities are functioned by the UGC. However, it is general concern that the many state universities do not function efficiently in terms of academically and financially during the past few years. The Government Auditor General also views that the expenditure allocated to the state universities during the past few years have not been utilized in appropriate manner. Conversely, reports of international organizations have revealed that the world ranking of Sri Lankan universities is moving favorably towards better position. These views are led to do a study to see the efficiency of state universities in Sri Lanka.
This study focuses on measuring efficiency of all state universities in Sri Lanka using Data Envelpment Analysis (DEA). DEA methodology provides facility to evaluate the efficiency by comparing the all units of the sample and by considering financial and non-financial factors. This study found that 72% of Sri Lankan universities is efficiently operated in terms of academic and financial factors during the period from 2007 to 2011, while 28% is inefficient. Findings of this study give more insights for policy makers and university administration to make necessary steps to use their inputs more effectively in future.