Collaboration between universities and industry is currently seen as a vehicle to improve innovation throughout the economy by means of knowledge and technology transfer. This paper examines the contributions of university staff to the promotion of knowledge exchange between universities and industry in Sri Lanka. In this quantitative explanatory study the authors apply a deductive research method and develop a conceptual framework that incorporates demographic and institutional factors as moderators. Academics of state universities constituted the survey population and 178 responses were received. SPSS and AMOS statistical packages assisted in the data analysis and a structural equation model was employed to explore the moderating effects. The findings revealed that the engagement of academic staff in joint research, contract research, human resource mobility and training was very low, and that the participation of males was greater than that of females. The impact of age on knowledge exchange was not linear in Sri Lanka. Further, the study ascertained that only joint research and training were important in knowledge exchange and that the university-industry relationship was significantly moderated by institutional factors. Other than the quality of academic work, other individual factors did not significantly moderate the relationship. The authors provide policy recommendations based on the findings.