Colombo land prices rose 5.9% in early 2026, with residential, commercial and industrial land values all increasing, Central Bank data shows.
Colombo land prices rose by 5.9% in the first half of 2026 compared with the same period last year, according to the Central Bank of Sri Lanka’s latest Land Valuation Index for the Colombo District.
All three sub-indices recorded annual increases during the period. Residential land prices climbed 6.7%, while commercial land prices increased 5.7%. Industrial land prices rose 5.2% year-on-year.
The Central Bank said the overall Land Valuation Index, which uses the first half of 2017 as its base period, reached 271.6 in the first half of 2026.
The residential land valuation sub-index stood at 284.9, while the commercial sub-index reached 268.9. The industrial land valuation sub-index rose to 261.0. In the second half of 2025, the respective index values were 273.1, 260.6 and 251.9.
Colombo Land Prices Rise Across All Three Sectors
On a half-yearly basis, the overall Land Valuation Index increased 3.7% in the first half of 2026 compared with the second half of 2025.
Residential land prices rose 4.3% during the six-month period. Commercial land prices increased 3.2%, while industrial land prices gained 3.6%.
The data also shows that growth in the residential and industrial sub-indices accelerated in the first half of 2026 compared with the growth rates recorded during the second half of 2025.
The index has a long history of tracking land price movements across the Colombo District. Authorities initially compiled it annually from 1998 to 2008, covering only five Divisional Secretariat divisions.
From 2009 to 2017, the index moved to a half-yearly format. In 2017, officials expanded its geographical coverage to include all 13 Divisional Secretariat divisions in the Colombo District.
Index Now Covers All 13 Colombo Divisions
The index now includes Colombo, Kolonnawa, Thimbirigasyaya, Padukka, Seethawaka, Maharagama, Homagama, Kaduwela, Kesbewa, Dehiwala, Ratmalana, Moratuwa and Sri Jayawardenepura Kotte.
Authorities previously called the measure the Land Price Index before renaming it the Land Valuation Index.
The Government Valuation Department collects the primary data every six months using prices for vacant land plots in the Colombo District.
Officials calculate three separate sub-indices for residential, commercial and industrial land in each Divisional Secretariat division. This approach helps maintain the diversity and homogeneity of land use within the index.
The final Land Valuation Index is based on the average of these sub-indices. As a result, the data provides an important measure for identifying actual Colombo land prices and price movements across Sri Lanka’s real estate sector.
