DEMAND FOR PRIVATE TUITION CLASSES UNDER THE FREE EDUCATION POLICY. EVIDENCE FROM SRI LANKA

Private tuition is a growing phenomenon in Sri Lanka especially among students who prepare for competitive national school qualifying examinations. Private tuition classes are one of major education issues under the free education policy in Sri Lanka as it can damage the purpose of free education policy. This study examined the determinants of household private tuition expenditure in Sri Lanka. The study is based on two Household Income and Expenditure Surveys (HIES) of Sri Lanka conducted by the Department of Census and Statistics (DCS) in 1995/96 and 2006/07. Using descriptive statistics and Tobit model estimation framework, we find that household demand for private tuition classes has increased in recent time. Household private tuition expenditure was a luxury good of consumer’s budget in 1995/96 but it has gradually become necessity good in 2006/07. Moreover,parental education level is found to be an important factor of household private tuition expenditure. Increasing demand for private tuition classes is a growing concern because Sri Lankan government provides free school education up to university level. Education policy makers may have to take steps to improve school quality as household demand for additional private tuition classes was found to have increased with competitive schoolqualifying exams in recent time.Key Words: Private Tuition Classes, Household Expenditure, Free Education Policies, Tobit Estimator