Managerial performance lapses create a drop in the product or service in any organization. It will greatly affect the education services provided the by the universities including Sri Lankan state universities. of the particular organization. This paper sets out to understand the managerial lapses of the performance of mangers in both urban and rural universities separately and to give recommendations for future similar studies based on identifying managerial performances and the relationships. Desk research was conducted by means of a preliminary literature survey to investigate the existing managerial performances. Accordingly, the secondary data from the local and international sources were used including the Sri Lankan government organizations like Auditor General Department etc. There were managerial deficiencies associated with different percentages under the categories of the Urban and Rural locations of Sri Lankan state universities. After analysis of the secondary data, it was revealed that the main managerial lapse is identified as the Non complaints with laws, rules, regulations and management decisions as 30% in Sri Lankan urban universities and the main managerial lapse is identified as the management inefficiencies in the Sri Lankan Rural universities, and it is reported as 36% out of total reported lapses in Sri Lankan rural state universities. When comparing the managerial lapses reported in between the Sri Lankan urban universities managerial lapses related to Accountability and Good Governance, accounting deficiency, Management Inefficiencies, Asset management lapses were higher in rural universities than urban universities. 
In considering the managerial deficiencies of Delay projects/contracts and capital works, financial administration, Operating inefficiency, they were only reported in the urban universities in the selected sample for this study. Management deficiency related to Human resources management, non-compliance with laws, rules, regulations and management decisions reported in higher percentages in urban universities than rural universities. It is recommended to have further investigations based on the identified lapses of the managerial performance, by using data from all the universities under the categories of under the context of urban and rural universities for the enhancement of the performances of the university community.