In the Colombo District of Sri Lanka, residential land prices experienced a 12.4 percent increase in the second half of 2025 compared to the same period the previous year. Commercial land prices rose by 11.3 percent, as reported by a land valuation index (LVI) compiled by the central bank.
Industrial land values saw an 8 percent increase in the latter half of 2025 when compared to the corresponding period in 2024. Overall, the land value index rose by 10.6 percent.
According to a statement from the Central Bank of Sri Lanka (CBSL), the Commercial and Residential LVIs showed more significant increases than those seen in the first half of 2025. The statement noted, “LVI and its sub-indicators recorded moderate increases on a semi-annual basis during the second half of 2025, compared to the values recorded in the first half of 2025.”
The continuous depreciation of currencies, influenced by classical Mercantilist approaches promoting competitive exchange rates, poses challenges for wage earners. Such economic conditions make it increasingly difficult for individuals to acquire land or build homes, as they erode workers’ wages.
(Colombo/Aug29/2025)
