Expanding STEM education in low- and middle-income countries: Evidence from policy reforms in Sri Lanka

Abstract

Governments in low- and middle-income countries (LMICs) are increasingly investing in STEM education to enhance youth employability and economic growth. Yet, the success of such initiatives depends on students’ responses, which are shaped by their perceptions, motivations, and institutional context. This study examines the effectiveness of two parallel government interventions in Sri Lanka aimed at increasing high school enrollment in STEM subjects: (1) introducing a new Technology stream and (2) upgrading selected schools to offer the Science stream. Using nationwide school census data from 2008 to 2021 and a Difference-in-Differences approach, the study compares the impacts of these interventions on student enrollment patterns across STEM and non-STEM majors. The results show that the introduction of the Technology stream had a significantly larger impact on increasing STEM enrollment and reducing non-STEM enrollments—especially among male students and those in provincial schools—compared to the Science stream intervention. The study draws on education economics and psychological theories to explain these differences, highlighting the roles of perceived returns, self-efficacy, and student interest orientation. The findings underscore the need for STEM policies to align with both student characteristics and broader systemic structures. Insights from Sri Lanka may be relevant to other LMICs where educational reforms must navigate stratified school systems, constrained resources, and persistent gender disparities in STEM participation.