The rapid development of information and communication technology (ICT), particularly internet, and the increasing development of user education forms and methods, such as new information literacy initiatives have resulted in significant changes in academic libraries. With these unprecedented changes, academic librarians in Sri Lanka have to deal with instructional processes more effectively and efficiently. The primary concern of this paper is to understand the concept 'user education' in the local context and its present practices in university libraries. Even more, this study intends to understand problems encountered, challenges being faced and potential new opportunities available on user education in university libraries in Sri Lanka. The total outcome of this paper is beneficial for researchers, policy makers, university authorities and academic librarians in Sri Lanka to understand the real situation which exists behind instructional activities of university libraries and to design, develop, implement policies and make strategies on pertinent subject.