February 26, Colombo (LNW): Property values across the Colombo District have continued their steady ascent, with residential plots leading the charge in the latter half of 2025, according to newly released figures from the Central Bank of Sri Lanka.
Data indicate that residential land prices rose by 12.4 per cent compared with the corresponding period in 2024, signalling sustained demand for housing space within the capital region. Commercial land followed closely behind, registering an annual increase of 11.3 per cent, reflecting renewed business confidence and expanding retail and office activity.
The Central Bank’s Land Valuation Indicator (LVI) for Colombo — a widely watched gauge of land price movements — advanced by 10.6 per cent year-on-year during the second half of 2025. Growth was recorded across all major categories tracked by the index. In addition to the sharp rise in residential and commercial segments, industrial land values also moved higher, posting an 8.0 per cent annual gain.
On a six-month basis, the market demonstrated more measured, yet still positive, growth compared with the first half of the year. Both residential and commercial sectors outperformed their earlier gains, suggesting a strengthening trajectory as 2025 progressed. Analysts note that improved credit conditions, infrastructure upgrades and sustained urban migration may have contributed to the buoyancy seen in Colombo’s land market.
The continued rise in land prices underscores Colombo’s position as the country’s commercial hub, with investors and developers remaining active despite broader economic headwinds. Market observers expect demand for well-located residential and mixed-use plots to remain firm into 2026, particularly as new development projects gather pace.