Amendments to the Banking Act will strengthen the Central Bank's powers and clear conflicts between Sinhala and English texts.
Parliament also passed amendments to the Monetary Law Act includes empowering the Central Bank to direct all banks to lend to specific economic sectors.
During the budget presentation, the government said agriculture lending has been quite inadequate over the last few years, despite increased savings deposits from the rural economy.
"The share of agricultural credit has declined from 6.3 percent in 1995 to 4.7 percent in 2004," a note circulated among the government parliamentary group said.
Under the amendments, banks are now compelled to increase their