This paper explains the effectiveness of distance teaching in Sri Lanka and shows the importance of face-to-face components in distance learning to meet the needs of students and resources. Distance education in the Third World and the current status of distance education at the Open University of Sri Lanka (OUSL) are described, and the characteristics of distance learners in Asia and Sri Lanka are noted. The results of a survey of students who had been in the OUSL distance education program are cited: (1) these students expected a learning system similar to learning taking place in conventional settings; (2) they preferred face-to-face teaching; (3) they lacked self confidence in self learning; (4) they expected continuing help and guidance from the institution; and (5) most were not used to and had no access to modern technology. The lack of autonomy, limited resources, and past experiences of the students are seen as major inhibitors to the development of distance education in Sri Lanka; and a complementary system of distance teaching and face-to-face teaching in the form of tutoring and counselling is recommended. (ALF)