Mar 09, Colombo: Land values in Sri Lanka's commercial capital Colombo on average has increased 18 percent compared to the prices a year ago according to the biannual Land Price Index (LPI) compiled by Central Bank of Sri Lanka.
The three sub-indices of LPI, namely residential, commercial and industrial have contributed to this increase. The residential land values year-on-year (YOY) increased by 17.2 percent and commercial land values by 17.4 percent while industrial land values increased by 19.4 percent.
The Land Price Index (LPI) for Colombo District reached 125.9 during the second half of 2018, recording an increase of 18 percent compared to the 116.3 in the 2nd half of 2017.
The Central Bank compiles and analyses several indicators, in order to monitor the developments in the real estate sector. Accordingly, the Land Price Index is compiled biannually covering the Colombo District since 1998.
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.