Jan 30, Colombo: Sri Lanka Central Bank today said the country's inflation rate dropped to 10.7 in January of this year and it would further drop to single digits by March 2009.

Speaking to the media the Governor of the Central Bank Ajith Nivard Cabraal said that the inflation rate of the January has dropped to 10.7 with an annual average change of 21.6 percent, a drop of a percent from December 2008.

Comparing to the figures last year it was a clear drop of 3.7 points from the 14.4 points for the December, he added.

The decline is continuing for the last six months from the highest figure of 28.2 recorded in June 2008.

The Governor attributed the decline to the reduction in prices of diesel and several other essential consumer items and tight monetary policies of the Bank.