Abstract: The skill gap among the gradates is a common problem in Sri Lanka, where the skill levels of the graduates and the skill level perceived and required by the employers does not match when the graduates enter in to the corporate sector. Although this is a pertinent issue, in the extant body of literature investigations are lacking. This paper aims to investigate the factors affecting the employability of graduates in the Sri Lankan context. Particularly, investigates the factors from both graduate’s and employer’s perspectives.