As suggested by the literature education widens the path for the labour force
participation and employment for both men and women. During the last four
decades the level of female education in Sri Lanka has increased rapidly,
narrowing the gender gap in education. Despite this rapid increase in the
female education level labour force participation of females has not increased
significantly. It seems that progress in education has not resulted in higher
female labour force participation. Within this puzzling background, this study
seeks to identify the major determinants of low labour force participation of
educated women in Sri Lanka. In order to figure out the determinants of
educated women‟s low labour force participation a Logit Model was
employed. This analysis was based on data taken from the labour force survey
2012, which has been carried out by the Department of Census and Statistics
in order to estimate the levels and trends of employment, unemployment and
labour force in Sri Lanka. Empirical results suggest that age, education level
and English literacy have strongly affected the low labour force participation
of educated women. Additionally, belonging to the employer headed house
hold or being the spouse of the head of the house hold also determines the low
labour force participation of educated women. Residing in rural areas can
also be a cause for this. The results imply the labour force participation of
educated women could be improved by encouraging them to attain higher
education level with formal training and English literacy, and by enhancing
the economic opportunities in rural areas