DOCUMEN -The World Bank Colombo Office. Telephone: 4-11-2448070/2345281 INTERNATIONALBANK FOR RECONSTRUCTION AND DEVELOPMENT 1st Floor, DFCC Building, acsimile: +94-11-2440357 / 5561352 INTERNATIONAL DEVELOPMENT ASSOCIATION 73/5, Galle Road, Cable Address: INTBAFRAD COLOMBO Colombo 3, Sri Lanka. Mailing Address: P.O. Box 1761, Colombo. February 14, 2014 Dr. P. B. Jayasundera Secretary st Ministry of Finance and Planning O 5 The Secretariat Colombo 1 Dear Dr. Jayasundera: Credit Number 4613-LK RE: (Second Community Development and Livelihood Improvement Project) Amendment to the Financing Agreement We refer to the Financing Agreement between the Democratic Socialist Republic of Sri Lanka (the Recipient) and the International Development Association (the Association), dated October 22, 2009, as amended. We also refer to your request dated December 17, 2013 to amend some provisions of the Financing Agreement. We are pleased to inform you that the Association, after due consideration, has agreed to the requested amendments, and accordingly, the Financing Agreerfient is hereby amended as follows: 1. The table under Section IV.A.2 of Schedule 2 is amended as follows: Amount of the Percentage of Financing Allocated Expenditures to be (expressed in SDR) Financed (1) Grants and Sub-Grants 38,700,000 80% for expenditures made until December 3 1, 2013; 100% for expenditures made on or after January 1, 2014 (2) Goods, works, consultants' 11,700,000 70% for expenditures services, training and made until December 3 1, Incremental Operating Costs 2013; 100% for expenditures made on or after January 1, 2014 TOTAL AMOUNT 50,400,000 RCA 248423. L) WUI 64145 W FAX (202) 477-6391 Dr. P. B. Jayasundera - 2 - February, 14, 2014 2. Section IV.B.1 of Schedule 2 is hereby amended as follows: "2. The Closing Date is September 30, 2014." 3. First line item of Component B of Schedule 5 is amended as follows: "At least 60% of Pradeshiya Sabhas have accessed funds and procedures and have implemented at least one cluster level sub-project as per the agreed rules." 4. Component C of Schedule 5 is amended as follows: "At least 50% of producer groups meet their operational expenses from regular sources of cash flows." All other terms and conditions of the Financing Agreement that have not been amended hereby, shall remain unchanged and in full force and effect. Please confirm your agreement to the amendment set out above, by having an authorized representative of the Recipient sign the form of confirmation set forth herein below, and returning one fully executed original of this amendment letter to us at your earliest convenience and retaining one original for your records. Upon countersignature, this amendment letter shall become effective. Very truly yours, INTERNATIONAL DEVELOPMENT ASSOCIATION Doina Petrescu Acting Country Director for Sri Lanka and the Maldives CONFIRMED AND AGREED DEMOCRATIC SOCIALIST REPUBLIC OF SRI LANKA By: Priyantha Ratnayake Director General Title: Department of External Resources Ministry of Finance and Planning The Secretariat, Date: -.1 /o3l Za /Lf Colombo 01, Sri Lanka. Dr. P. B. Jayasundera - 3 - February, 14, 2014 cc: Mr. Priyantha Mayadunne, Additional Secretary, Development Projects and Agrarian Services, Ministry of Economic Development Mr. Shantha Bandara, Additional Secretary, Poverty Alleviation and Rural Development, Ministry of Economic Development Mr. S. K. Liyanage, Project Development, SCDLIP