Colombo District Land Price Index up 18%

Friday, 8 March 2019 00:00 - - {{hitsCtrl.values.hits}}

Land Price Index (LPI) for Colombo District, compiled by the Central Bank of Sri Lanka (CBSL), reached 125.9 during the second half of 2018, recording an increase of 18% compared to the same period in 2017.

The three sub-indices of LPI, namely residential, commercial and industrial have contributed to this increase.

LPI is compiled covering all Divisional Secretariat (DS) divisions of Colombo District, using per perch bare land prices collected from the Government Valuation Department, in order to monitor the developments in the real estate sector.

To maintain homogeneity, three separate sub-indices for residential, commercial and industrial lands are computed, considering the diverse nature of the land use, and the overall LPI is calculated by taking the average of these three sub-indices.LPI was compiled from 1998 to 2017 covering five DS divisions in the Colombo District. Considering the increasing importance of monitoring land prices due to the recent developments in the real estate sector, the geographical coverage of LPI was later expanded to cover all DS divisions in the Colombo District. This new series of LPI, with expanded coverage and revised base period, continues biannually since 2017.