Economy News | Colombo: According to the biannual Land Price Index compiled by Central Bank of Sri Lanka, land prices in Sri Lanka’s commercial capital Colombo averaged 7.1 per cent in the first half of 2020.
The Land Valuation Indicator (LVI) of Colombo District reached 141.6 during the 1st half of 2020, recording an annual increase of 7.1 percent while, on semi-annual basis the LVI marginally increased by 2.0 percent.
Both annual and semi-annual percentage changes of LVI showed a declining trend over the recent periods.
All sub-indicators of LVI, namely Residential LVI, Commercial LVI and Industrial LVI contributed to the overall increase. Industrial LVI recorded the highest annual increase of 7.2 percent, while both Residential LVI and Commercial LVI recorded 7.1 percent increases.
The Land Price Index (LPI) compiled from 1998 to 2008 on an annual basis and from 2009 to 2017 on a semiannual basis, covering 5 DS divisions in the Colombo District. Subsequently, from 2017 onwards, its geographical coverage was enhanced to represent all 13 DS divisions in the Colombo District and hence it was rebased considering 1st half of 2017 as the base period. From 2nd half of 2019 onwards LPI is renamed as Land Valuation Indicator (LVI) and released on a semi -annual basis.
Considering the diverse nature of land use, and the necessity of maintaining homogeneity, three sub-indicators for residential, commercial and industrial lands are computed separately for each DS division using the average per perch bare land price in the area. The LVI is the simple average of these three sub-indicators.