Land values in Sri Lanka’s commercial capital Colombo on average has increased 4.6 percent in the second half of 2020, according to the biannual Land Price Index compiled by Central Bank of Sri Lanka.
The Land Valuation Indicator (LVI) of Colombo District reached 145.2 during the second half of 2020, recording a year-on-year n increase of 4.6 percent while, on semi-annual basis the LVI marginally increased by 2.5 percent.
However, the percentage level of increase of LVI was in line with the declining trend observed over the recent periods.
In addition, the LVI recorded an increase of 2.5 per cent for the second half of 2020 compared to the first half of 2020.
All sub-indicators of LVI, namely Residential LVI, Commercial LVI and Industrial LVI, contributed to the overall increase. Residential LVI recorded the highest annual increase of 4.7 percent, followed by Industrial LVI and Commercial LVI..
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.