The world entered to knowledge-based economy which is based on the production and use of information. Today computer technology, language proficiency and logistics play a major role. University Curriculum connects the secondary level education and the industry. Therefore, industry inclusiveness is essential in transforming children to an industry worker or an entrepreneur. This paper is derived from an opinion survey, desk research, and a case study. Reports of international institutions were studied extensively in the literatures survey. The respondents of the survey consisted key personnel in the government and private sector covering a cross section of the stakeholders in education and business world. The report analyses are then evaluated and discussed though a case study in Sri Lanka. The practices and procedures in the contemporary education system in the country is systematically explained in this section. The report presents its key recommendation under seven areas as policy recommendations. It includes innovative concepts such as, vertical integration between schools, universities, and industry; extended academic disciplines at tertiary level; changes in the university; review to selection criteria of state universities; new academic disciplines in the school curriculum; technical and vocational education; focus on children with different skills etc.

With globalization the need for experts in various fields were identified. In Sri Lanka students and parents preferred to become engineers, medical doctors, accountants, and lawyers after completion of their studies. However, demand for jobs other than above categories kept increasing and a mismatch between the supply of qualified people in relevant fields as against the demand from industry and government generated. Government universities offered degrees in limited fields and students were compelled to enroll in degrees against their choice. The education system produced more graduates from certain fields that are not in demand from the industry perspective. This situation leads to unemployment and underemployment which is a social problem today. Therefore,  a psychological paradigm shift in students’ degree choice  is proposed in this paper as a long-term solution to this problem. This study administered a qualitative research approach consisting comprehensive desk research and opinion survey. The results reveals the seriousness of the problems in Sri Lanka, its root causes, potential solutions. The society in large has settled down with certain ideologies about the field of higher education that are not commensurate with the present global trends. This paper discusses about the fundamental prerequisites to create a psychological paradigm shift in students’ degree choice.