The report is a compilation of a discussion paper series by the World Bank. The report is based on school-based education improvement initiatives where schools largely operate through a centrally controlled education system. In many Asian countries, public education is under the purview of the government, such that decision making, allocation of resources and key areas of control are managed centrally rather than locally. Therefore, empowerment of schools is a major step forward, whereby school-based management and the involvement of parents and communities in the work of schools must become important. The report looks at school-based management in terms of distribution of powers, more effective educational delivery andrecognition of, and responsiveness to, local needs. The report also highlights key benefits, mechanisms and ways of improving the Sri Lankan education system with school-based management and providing a better future for the children of the country.