Apr 30, Colombo: Sri Lanka's annual average inflation rate declined to a recorded 16.7 percent in April, from its level of 18.6 percent in the previous month, the Central Bank reported today.

According to the Department of Census and Statistics, the consumer price inflation rate fell sharply to 2.9 percent in April from 5.3 percent in March. According to the Central Bank this is the lowest level of inflation ever recorded since January, 2004.

The inflation rate has been declining continually for the past ten months from a peak at 28.2 percent in June 2008 due to high global food and oil prices.

However, the Core inflation, on a point-to-point basis, also declined from 14.2 percent in March, 2009 to 13.5 percent in April, 2009, the Central Bank reported.

The Central Bank expects the inflation to continue to remain low reflecting the impact of tight monetary policy adopted by the Central Bank during the past years and easing of commodity prices in the international market.