The aim of this paper is to review determinants of graduates’ employability of Sri Lankan universities. As the education is a major criterion of measuring the development of a country and many Sri Lankan families give higher priority for their children’s education, it is important to realize the problem of graduate employability of the country. This study reviewed available literature to comprehend different views relating to the issue in general. Primary data was collected through discussions and telephone conversations with managers in government sector, private sector and non-government organizations. Also an examination of a random sample of 50 newspaper advertisements of job opportunities in weekend news papers was made. Further, the study used quality assurance judgement review results relating to the degree programs in Sri Lankan universities conducted by Sri Lanka Quality Assurance Council. It is found that there are many jobs for engineering/science and management graduates in current job market and fewer opportunities are available for humanities and social sciences. However, as far as quality of degree programs is concerned humanities and social sciences degree programs are better than even some degree programs offered by medical faculties in Sri Lanka.