This report illustrates wide range of aspects in the Sri Lankan higher education such as relevance and quality of higher education institutions and graduates produced by such institutes, the challenges faced by higher education system in the country, strategic expansion of access to higher education in areas of economic and social importance, improved teaching and learning in the higher education institutions, a national qualification framework for the full higher education sector, a quality assurance and accreditation system for the full higher education system, the empowerment of HEIs through strategic decentralisation and autonomy, a comprehensive and reliable Higher Education Management Information System (HEMIS), search and development, an expansion of the resource envelope available to develop the higher education sector, the promotion of social cohesion among the different ethnic, religious and cultural groups in the country and special attention is required for the development of higher education institutions in lagging regions, such as the Northern, Eastern and other outlying provinces.