India's Manipal University is to set up a campus near Negombo, north of Sri Lanka's capital Colombo.
The government is offering land and tax breaks for well recognized international higher education institutes to set up shop in Sri Lanka and break a state monopoly in degree awarding to freedom for students to gain a tertiary education.
Navaratne said the government was in advanced talks with about 10 institutes and relevant legislation was in the final stages of being drafted.
He said some institutions were getting land and others were going on their own.
He said the ministry was to have discussions with Treasury Wednesday about refining public policy on education.
Australian Technical and Management College (ATMC), an institute that works as an education delivery service for University of Ballarat in Australia said it was also in talks to set up fully-fledged campus.
"We are in discussions with the ministry of higher education on that," ATMC chief executive Manish Malhotra said.
"It is our long term goal that after a couple of year we will have a fully fledged campus here."
ATMC has just started a 'study centre' in Colombo to enroll fulltime students for the University of Ballarat in Colombo.
The University also welcomes the opportunity to have a facility with ATMC in Sri Lanka and the university will also make sure that facilities were equivalent to facilities in Australia," University of Ballarat deputy vice chancellor Rowena Coutts said.
"We like to make sure that as close as possible the student experience is the same."
Higher education minister S B Dissanayake has said that China's Beijing State University, London School of Fashion were also in talks with the government to set up campuses. Update II