The report on education in Sri Lanka is presented in two parts. Part I describes the structure of the educational system. Information is included on principles of educational development as set forth in the Constitution of 1972, educational administration, teacher education, management and funding of different levels of education, selection criteria for pursuing studies, general and higher education certificates, decentralized curriculum planning, and examination reform. Part II is a report of progress in educational development from 1974-76. During this period, policy orientations were introduced by the government which changed education from an academic, elitist system to a progressive and democratic one. These policy reorientations were accompanied by new legislative measures, decentralization of educational administration and management, introduction of core curricula on primary and secondary levels, intensified in-service programs for teachers, and development of programs for school drop-outs, adults, and workers. Major problems which must still be resolved include a high drop-out rate, high educational costs, regional inequities, and insufficient relevance of the educational system to the social needs of Sri Lanka. (Author/DB)