Conformed Copy - C1909 - Second Smallholder Rubber Rehabilitation Project - Amendment 1

Page 1 MINISTRY OF FINANCE The Secretariat, Colombo I March 6, 1992 Mr. Paul Isenman, Director, Country Department 111, South Asia Region, World Bank, 1818 H Street NW, Washington DC 20433, U. S. A. Dear Mr. Isenman, Credit 1909 CE - Second Smallholder Rubber Rehabilitation Project I write with reference to the above Development Credit Agreement entered into between the Government of Sri Lanka and the International Development Association. The World Bank Supervision Mission in February 1992, suggested to readjust the Replanting and New Planting targets from the original 35,500 ha and 3200 ha to 30,000 ha, and 8700 ha respectively. The distribution of planting over the last few years reflets a notable reduction in the rate of Replanting and an upward trend in New Planting activities, which is due to a number of factors, one of which is the continued decline in rubber prices. Where new Planting activities are concerned it is evidenced that the land for the purpose is found not from forest reserves but largely from extents under other crops. We have agreed to the suggestion made by the Supervision Mission to amend Replanting and New Planting targets over the Project period to 30,000 ha and 8,700 ha respectively. I would therefore be grateful if you could approve the necessary amendments to the corresponding figures in Paragraphs 1, and 2 of Part A encaptioned, 'Field Development' in schedule 2 of the Development Credit Agreement. Yours sincerely, (R. Paskaralingam) Secretary Ministry of Finance SA3AG Log. No. 628 Date Rec'd 4/9/92