HomeBreakingGrowth of Land Prices in Colombo

    Growth of Land Prices in Colombo

    The rate of growth in the assessed value of land in Colombo district has shown a slow pace compared to last year. The Central Bank of Sri Lanka says that the land valuation index in the Colombo district recorded a relatively low annual growth rate of 7.1% in the second half of 2023.

    This situation is seen in all its three sub-indices namely residential, commercial and industrial.

    Those indices recorded growths of 8.8%, 6.7% and 5.9% respectively.

    The Land Valuation Index recorded a slight growth of 2.1% in the second half of 2023 compared to the first half of 2023, showing slower growth on a semi-annual basis as well.

    The central bank says that this was mainly due to the slow growth of the industrial sub-index in the second half compared to the first half of 2023 and the low growth of the commercial and residential sub-indexes.

    The prices of a vacant land perch collected from the Government Valuation Department semi-annually are used for this purpose.

    The land price index has been prepared annually from 1998 to 2008 and semi-annually from 2009 to 2017 covering 5 Divisional Secretariat Divisions of Colombo District.

    Then, from 2017 onwards, the geographical coverage of this index was expanded to include all 13 divisional secretariat divisions of Colombo district, and the base year was revised to the first half of 2017. This Land Price Index was renamed as Land Valuation Index from 2020 and is published semi-annually.

    Taking into account the existing diversity and the need to maintain homogeneity in terms of land use, three sub-indices are calculated for residential, commercial and industrial land categories by using the average price of a perch of land belonging to each category in each area of each divisional secretariat. The land valuation index is calculated based on the average of those three sub-indices.

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