The education sector in Sri Lanka has recognized the importance of decentralized decision making as a means of effectively responding to local needs and improving the performance of schools. The Education Quality Inputs (EQI) scheme in Sri Lanka was one of the first schemes launched to improve school performance through decentralized financial decision making. In the EQI scheme schools are allocated a budget based on a formula for purchasing educational resources. Is this scheme an improvement on the earlier funding and management models? Is resource allocation under this scheme equitable? A study using the school census and other primary and secondary data seeks to find answers to the above questions.

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