Land prices up 13% in 1H

• CB releases Land Price Index for 1H 2017

 In order to monitor the developments in the real estate sector, the Central Bank of Sri Lanka (CBSL) has been compiling and analysing several indicators. 

The bi-annual Land Price Index (LPI) which is compiled covering the Colombo District since 1998 is one of the indicators of this nature.In the compilation process of LPI, CBSL uses the land price data collected by the Valuation Department of Sri Lanka covering around 50 centres of five District Secretariat (DS) divisions in the Colombo District.

In view of the diverse nature of the land use and to maintain homogeneity, three indices for residential, commercial and industrial lands are computed separately. The overall LPI is computed by taking the average of these three sub-indices.On year-on-year basis for the period ending June this year, LPI recorded a 12.6% increase, continuing the recent trend in land price movements in the Colombo District. All three sub-indices of LPI (Residential, Commercial and Industrial) contributed to this increase. 

The recent movements of LPI and its sub-indices are provided for the information of the general public. Colombo, Dehiwala, Homagama, Kaduwela and Kesbewa are the five DS divisions considered in the LPI.