Demand for private tutoring in a free education country. The case of Sri Lanka

Private tutoring is a growing phenomenon among Sri Lankan students. We examine the demand for private tutoring in Sri Lanka using two rounds of nationwide household surveys. We find that the demand for private tutoring in Sri Lanka has increased over time. Moreover, results reveal that private tutoring expenditure has changed from a luxury good in 1995-1996 to a necessity good in 2006-2007. We believe that increased demand for private tutoring is mainly driven by intense social competition to enrol in popular secondary schools and universities coupled with the increased income of parents owing to the expansion of the middle classes to engage in this competition.