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A new optimization technique named as sliced particle swarm optimization (SPSO) is proposed. It introduces the slicing of search space into rectangular slices. It gives complete solution in terms of reduction in the computational cost and tracking minutely each sliced search space. It introduces the momentum factor which restricts the particle in a sliced search space. Linearly decreasing inertia weight is applied throughout the computation process which balances between global exploration and local exploitation. The proposed algorithm is tested on three benchmark functions and the results are promising.