Abstract—This study explores the most effective leadership style in school performances of Central Colleges in Sri Lanka and identifies problems and difficulties faced by the principles of the selected schools. This study revealed that the transformational leadership style is the most effective as it leads higher school performances. Some principals of the Central Colleges were not successful due to the lack of resources, negative attitudes of the stakeholders, inefficient government officers, unfavorable external environment and the unnecessary political interference. Policy measures are proposed towards better performance of the Central Colleges of Sri Lanka. Findings of this study will help the governing bodies to design and update policies for improving performance of the Central Colleges specifically, and school leadership of Sri Lanka in generally.