Colombo Land Price Index records 18-pct increase in 2H 2018

Mar 07, 2019 (LBO) – Land Price Index (LPI) for Colombo District, compiled by the Central Bank reached 125.9 during the 2nd half of 2018, recording an increase of 18 percent compared to the 2nd half of 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 District1 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.