This study is a part of the Research Studies series. The Micro Impacts of Macroeconomic Adjustment Policies (MIMAP) Project in Sri Lanka primarily aims at informing policymakers of the possible effects of macroeconomic adjustment policies on vulnerable groups. In attempting to cover a rather extensive area of interest, this review works along two main paths: linking literature specific to macro policy reform with that of literature on welfare and poverty, and reviewing literature, which itself links policy reform and welfare in a cause and effect relationship. The review on macro policy is considered under the three phases of reform: 1977- 1989, 1990-1994, and 1994 onwards. The review on poverty on social welfare includes both macro- and micro-level studies. The review concludes that the existing literature does provide—albeit with numerous limitations and gaps—a very sound base for studying the impact of macro-economic policy on welfare at the household level.