Karunaratne initially attended Dharmaraja College, but had to move to different schools as his father was transferred. Karunaratne's father eventually pawned his wedding ring to pay for Karunaratne's first month at a premier boarding school in Colombo. When Karunaratne sat for the university entrance exam while attending Ananda College (the Buddhist school founded by Col. Henry Steel Olcott), he scored the highest grade nationally and won the prestigious Moulana Prize. (The prize was shared by another student who came in a close second, Felix Dias Bandaranaike the son of a wealthy, land-owning family who attended the prestigious Royal College.) This fully paid scholarship allowed Karunaratne to pursue higher education without further burdening his family.
