Assisted Schools and Training Colleges (Special Provisions) Act, No. 5 of 1960
This Act is the principal instrument behind Sri Lanka's landmark 1960s nationalisation of denominational and semi-private schools. It empowered the Minister of Education to appoint the Director of Education as the manager of any Assisted school, effectively ending private management of state-funded schools. Proprietors who refused could continue as strictly "unaided" schools — receiving no state funding and prohibited from levying fees.
Principal Act: LawNet (Act No. 5 of 1960). Supplementary Act: LawNet (Act No. 8 of 1961). Amendment: LawNet (Act No. 65 of 1981).
Act Structure
The Act, together with its 1961 supplement, can be grouped into three functional areas:
| Area | Sections / Instrument | Key Provisions |
|---|---|---|
| State Takeover | Section 2 (1960 Act) | Minister appoints Director of Education as manager of any Assisted school |
| Proprietor's Choice | Sections 3, 5 (1960 Act) | Proprietor may opt to run school as "unaided" — no State funding, no fee levying |
| Property Vesting | Act No. 8 of 1961 | Physical property and land vested in the Crown without compensation; power to eject occupants |
| Financial Relief | Section 5A (1981 Amendment) | Director-General may provide grants to unaided Grade I & II schools from State funds |
Statutory Bodies & Authorities
The Act does not establish traditional statutory bodies (boards, councils, or committees). Instead, it confers extraordinary powers on two existing government authorities:
Unlike regulatory acts (e.g., the NMRA Act or Medical Ordinance), this Act is a command-and-control instrument — it vests management and property powers directly in the Minister and Director of Education, with no advisory or oversight bodies established.
Key Provisions
State Takeover Mechanism (Section 2)
The Minister of Education may, by written order, appoint the Director of Education as the manager of any Assisted school or training college. This power:
- Overrides any existing proprietor, board of governors, or denominational management
- Applies to any school classified as "Assisted" (i.e., receiving State grants while under private management)
- Takes effect immediately upon the Minister's written order
This provision was the centrepiece of the Bandaranaike government's 1960 education reforms. Approximately 2,500 denominational schools (primarily Catholic and Buddhist) were brought under State management. The policy remains one of the most significant government interventions in Sri Lankan education history.
The Proprietor's Choice (Sections 3 & 5)
A school proprietor who did not wish to accept State management could opt to run the school as "unaided":
| Condition | Restriction |
|---|---|
| No State funding | The school receives no grants, subsidies, or financial assistance from the State |
| No fee levying | The school cannot charge tuition or other fees to students |
| Full private responsibility | All operating costs borne entirely by the proprietor |
This created a harsh dilemma — proprietors who refused the State takeover were left with schools they could neither fund publicly nor charge for privately.
Property Vesting — Act No. 8 of 1961
The 1960 Act only transferred management. The 1961 Supplementary Provisions Act completed the nationalisation by:
- Vesting property: All movable and immovable property of taken-over schools vested in the Crown (State) without compensation
- Ejection powers: The State was granted legal authority to eject any occupants from school premises
- Physical possession: The State could take immediate physical possession of all school buildings, grounds, and equipment
The vesting of property without compensation was — and remains — one of the most aggressive property acquisition measures in Sri Lankan legislation. It has been the subject of significant political and religious controversy for over six decades.
Financial Relief for Unaided Schools — Section 5A (1981)
After over two decades of financial hardship for schools that chose to remain "unaided", the 1981 Amendment provided a lifeline:
- The Director-General of Education was authorised to provide financial assistance (grants from State funds) to unaided Grade I and Grade II schools
- This power explicitly overrides the restrictions of Section 5 (which had prohibited State funding)
- The provision was made retroactive to January 1, 1980
- Grade III schools were notably excluded
Amendment History
The Act's legislative history is contained — one supplementary act (1961) and one direct amendment (1981). No further amendments have been enacted in over 40 years.
Supplementary Act No. 8 of 1961
Type: Property Vesting | Impact: High
The aggressive follow-up to the 1960 Act. While the principal Act only appointed the Director as manager, this supplementary act provided the legal mechanism to vest physical property and land in the Crown without compensation. It also granted ejection powers over occupants.
Amendment Act No. 65 of 1981
Type: Financial Relief / Administrative | Impact: Medium
The sole direct textual amendment to the 1960 Act. Inserted Section 5A to allow the Director-General of Education to provide financial assistance to unaided Grade I and II schools from State funds, bypassing the restrictions of Section 5. Made retroactive to January 1, 1980.
Amendment Timeline
Current Status & Reform
The entire Act is currently under review for wholesale replacement.
- Law Commission Sub-Committee (2023): Due to the archaic nature of both the 1960 and 1961 Acts — which still reference the "Crown" and outdated bureaucratic structures — the Law Commission of Sri Lanka appointed a sub-committee to examine these laws and propose comprehensive reforms or repeals.
- Proposed Education Standard Act: The government is working on drafting a new "Education Standard Act" that aims to consolidate, modernise, and integrate all existing general education ordinances and acts (including the Assisted Schools Acts) into a single modern legislative framework.
Cross-References
Assisted Schools and Training Colleges (Supplementary Provisions) Act, No. 8 of 1961
The companion act that completed the nationalisation by vesting school property in the State. Though a separate enactment, it is operationally inseparable from the 1960 Act.
Education Ordinance
The broader framework legislation for education administration in Sri Lanka. The Assisted Schools Act operates within the administrative structures (Director of Education, school classification system) established by the Education Ordinance.
Entity Relationships & Governance
Governance Hierarchy (1952 Design)
Current Replacement Structure (Post-1989)
Data Confidence
Research Gaps
The following areas require further investigation:
- Number of schools affected: The exact count of schools taken over under Section 2 vs. those that chose to remain unaided is not confirmed in the legislation
- Current unaided schools: How many schools still operate under the "unaided" classification and receive grants under Section 5A
- Property disputes: Whether any legal challenges to the 1961 property vesting have been adjudicated
- Grade III exclusion: Why the 1981 Amendment limited financial assistance to Grade I and II schools, excluding Grade III
- Law Commission report: The findings and recommendations of the 2023 sub-committee have not been published
- Education Standard Act progress: Current drafting status and expected timeline for the proposed consolidation
- Constitutional challenges: Whether the property vesting provisions have been challenged under the 1978 Constitution's fundamental rights provisions (Articles 12, 14)
- Compensation claims: Whether any affected proprietors or religious organisations have pursued compensation through other legal avenues