COVID-19, an insistent universal issue affecting Sri Lanka for over four years, has had substantial concerns. Its negative impacts on Sri Lanka's education system drove institutes to the Online Education (OE) system. However, OE programs should be successful in order for them to become a long-term solution. The study aims to critically assess the OE service quality while finding the relationships between service quality and students’ satisfaction in the online learning system as well as identifying its impact on students’ satisfaction level. A structured survey was arranged and circulated among the undergraduates at the South Eastern University of Sri Lanka (SEUSL). The questionnaire’s reliability was assessed among the collected 316 observations. This study conducted the SERVQUAL framework, adapting its components to investigate the detailed expectations and perceptions of online education. It reveals that the university offers a satisfying OE to the students as there is a narrow gap between students’ expectation and perception. A linear model was utilized to assess the relationships among the variables. Findings revealed the statistically significant positive outcome of service quality on students’ satisfaction, as evidenced by \({R}^{2}\) 81%. Interestingly, the appearance of the institution and its tools have the greatest impact on their satisfaction, while Responsiveness has the least impact. This study’s findings suggest that universities cannot afford to neglect any of those dimensions, as they all appear to have an impact on students’ satisfaction, including changeable values. Overall, this study will assist to attain the defensible and efficacious taking on forthcoming distance learning systems.