Aug 28, Colombo: Governor of the Central Bank of Sri Lanka Ajith Nivard Cabraal has predicted a decline of inflation rates into the single digits by the end of 2009, barring any major external factors like the global rise in fuel and food prices that pushed the inflation to record levels this year.

"If there are no major shocks, we would see single-digit inflation by the end of next year," stated the Governor in a media interview recently.

Cabraal also warned that the Bank's tight monetary policy would mean that the economic growth in 2008 would be slightly less than the forecast of 7 percent.