Transformational leadership is aspired to implement change and novelty which is important to focus on service innovation. The study was focused on three key research objectives 1) to explore the practice of transformational leadership, 2) to identify features of transformational leaders and 3) to provide suitable suggestions and recommendations for improvement. In order to conduct the study an analytical framework was developed using key dimensions identified by former studies, the study was conducted using inductive reasoning through a qualitative research approach taking a case-study of a selected non-state higher education institution. A sample of the study 12 interviewees have been chosen and thematic analysis was conducted. Based on the analysis it was identified that majority of the interviewees perceive that transformational leadership is practiced at their organization as idealized influence, inspiration, intellectual simulation and individual consideration are accepted by all to be practiced in work setting. Further, making effort to align with its timely relevance the ability of the leaders to be visionary and effectively communicate has been emphasized. As the features of transformational leaders’ intrapersonal features such as; innovation, creativity, challenge-orientation, visionary, optimism and productivity and interpersonal features such as; mentorship, emotional intelligence, harmony, walk the talk, enthusiasm and inclusion were identified. Further as key areas of suggestions organizational, managerial and leadership level improvements were provided. The study concludes that in order to assure successful transformational leadership in non-state higher education sector in Sri Lanka the effective internal practices, comprehensive policy measures and continuous improvement is important.