Despite committing to provide ten to eleven years of education to all since 1990. only 93 percent of children in the 5 - 14 years old age group were in school in Sri Lanka in the year 2000. Moreover, when decomposed into different socio-economic groups the education participation rates are not equitable across the country. This is despite a network of around 10000 schools, supplying education free of charge throughout the country. This paper examines the determinants of school non-participation of 5-14 years olds in Sri Lanka using household, community and school level information obtained from an island-wide survey. The study finds that demand side problems such sa poverty, direct and indirect costs of schooling, and cultural factors as well as supply side shortcomings such as quality of education seem to affect schooling behavior of children. Policies facilitating compulsory education in the country at present gives prominence to awareness building, monitoring and improvements in education delivery. The results show that these efforts need to be complemented by other supply side improvementa and income transfer measures, especially for the poorest, to achieve universal school attendance.