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As stated earlier, a framework has to be distinguished from a model. Whereas a model provides the conceptual lenses through which we view our world and try to make sense of it, a framework is a structure made of parts joined to form a frame. Work done on or with a frame can be referred to as a framework.

The study examines recent economic and social performance, indicating the priority challenges the country needs to face, and vulnerabilities to overcome. Resolving the civil conflict should be paramount. In addition, the role of government needs to be revised, and reduced, through strong policy reforms, the fiscal deficit reduced, the structure of expenditure improved, and remove policy distortions in the labor market removed. The privatization process needs to be enhanced, and the number of public institutions, to be reduced. Effective decentralization and addressing weaknesses in governance will bring prosperity to the country. The dimensions of poverty are addressed through exploring vulnerability, insecurity, and marginal poverty. Governance issues in poverty alleviating programs, and issues in future poverty strategy should be identified, and remedies found. Above all, success lies in full collaboration between all stakeholders.

Acknowledgment

I offer my sincere thanks to Dr.R.H.S.Samaratunga, Director Macro Division, Mr.O.K. Nayanananda ,Addl.Director, Macro Division for giving me their guidance and instructions

to complete this report.

My thanks go to Miss Mallika Dissanayake who provided invaluable help and advice for me .

My thanks to Mr.R.B.D.S.Perera for his corporation to complete this report.

Finally I must thanks all my colleges who helped me in various ways.