Literacy status of a sample of primary education completers from BRAC non-formal schools in 2016 and enrolled in grade six in various formal schools in the following year were assessed. Their performance in literacy was compared with a similar group of students taken from national literacy assessment under Education Watch 2016. A test based literacy assessment tool developed for Education Watch 2002 was used. The findings reveal that although the BRAC school students bear a lower socioeconomic status than those in national sample they achieved significantly higher literacy rate than the comparison group of students. A similar result was observed in each of the four components of literacy viz., reading, writing, numeracy and application of the 3Rs. No gender difference was observed in national sample but girls outperformed boys in BRAC sample.