Sri Lankan Higher Education and Highways Minister, Lakshman Kiriella told Xinhua that five foreign universities including Manipal University of India had agreed to put up their branch campuses in the country.

Sri Lanka would open up the higher education sector for private investment, he told the Chinese state-run news agency.

The minister, however, said there was a case regarding the acceptability of the only private medical college operating in Sri Lanka.

He said the future private investments in higher education would depend upon the Supreme Court ruling expected soon.

He said a large number of students went abroad on an annual basis for higher education as the country's university system could not offer them adequate opportunities.

"Nearly 100,000 students qualify for university education every year. However, only one fourths of them can be accommodated because opportunities are limited at the state universities," he said.

Also, he said new legislation would be enacted to improve the quality of higher education in Sri Lanka.