This study assesses the effectiveness of the Education Quality Inputs (EQI) scheme — a formula based resource allocation scheme for schools — in distributing funds and improving learning outcomes in Sri Lanka. The study was commissioned by UNESCO (Paris) as a background study for the Education for All – Global Monitoring Report – 2013.
Results show that the EQI scheme has improving equity amongst Sri Lankan schools. Smaller less facilitated schools rely on EQI funds more, but their utilization of funds is weaker. Evidence suggests that EQI funds have improved teaching, school attendance and learning. However, the effective usage of EQI funds is not optimal. Reasons are discussed.