In the initial phase of the project, the studies undertaken sought to obtain a clear and comprehensive picture of the information already available within Sri Lanka on macroeconomic policy reform and its impacts on welfare. The information surveyed include the literature on policy and welfare, data available for poverty analysis, and macro-economic models of the Sri Lankan economy. The Institute’s library was developed as a national repository unit for material on poverty.
Due to Sri Lanka’s early efforts and achievements in welfare and the high-profile nature of subsequent economic reforms, considerable attention has been directed towards the relationship between welfare and reform. Further, Sri Lanka has a relatively well developed national data gathering and publication tradition that provides considerable information regarding macroeconomic indicators and aspects of welfare of the population. Macroeconomic modeling, however, is an area that has received less attention. However, the surveys of existing information indicate that despite some crucial gaps, there is a sound base of knowledge that can be consolidated and expanded upon to understand the mechanisms which link macroeconomic policy reform to household welfare in Sri Lanka.