Wednesday Aug 19, 2026
Wednesday Aug 19, 2026
Wednesday, 19 August 2026 05:00 - - {{hitsCtrl.values.hits}}
Colombo District land values rose by 5.9% year-on-year (YoY) in the first half of 2026, extending their post-crisis increase but at a markedly slower pace than during the height of Sri Lanka’s economic crisis in 2022-23, latest Central Bank data showed.
The Central Bank of Sri Lanka (CBSL) Land Valuation Indicator (LVI) increased to 271.6 in 1H 2026 from 256.4 a year earlier, with all three categories recording what the Central Bank described as moderate YoY increases.
Residential land values led the increase, rising by 6.7% YoY, followed by commercial land at 5.7% and industrial land at 5.2%.
The latest reading leaves the headline LVI nearly 24% above its end-2023 level of 219.8. Residential land values have risen by nearly 29% over the same period, from an index value of 221.0 to 284.9, whilst commercial land values are up nearly 26% from 214.0 to 268.9. Industrial land values have increased by about 16% from 224.5 to 261.0.
Since end-2023, residential land has therefore recorded the strongest increase, followed closely by commercial land, whilst the increase in industrial land values has been comparatively lower.
The current pace of land-value growth is substantially below that recorded around the height of the economic crisis. The headline LVI rose by 14.8% YoY in 2H 2022 and 15.2% in 1H 2023, before growth slowed to 7.1% in 2H 2023.
Sequential movements show a similar moderation. The LVI rose by 9.8% in 2H 2022 and a further 4.9% in 1H 2023. In comparison, the increase in 1H 2026 was 3.7% from the preceding six months.
The latest data also signal a slowdown from the renewed double-digit growth recorded during 2025. The headline LVI rose by 11.4% YoY in 1H 2025 and 10.6% in 2H 2025 before moderating to 5.9% in 1H 2026.
Residential land followed a similar trajectory, with YoY growth easing to 6.7% in 1H 2026 from 12.4% in 2H 2025 and 14.4% in 1H 2025.
However, on a half-on-half basis, all three categories continued to record increases in 1H 2026. Residential land values rose by 4.3% from 2H 2025, industrial land by 3.6% and commercial land by 3.2%. Residential and industrial land recorded stronger increases than their respective 2.3% and 1.6% gains in 2H 2025.
The LVI is compiled semi-annually using per-perch bare land prices obtained from the Government Valuation Department and covers all 13 Divisional Secretariat divisions in the Colombo District. The headline LVI is the simple average of separate residential, commercial and industrial land valuation indicators.
