The LVI, which tracks per-perch bare land prices based on 2017 H1=100, reached 261.9 by late 2025, marking a 2.1% increase from the first half of the year. Residential land recorded the strongest growth, climbing 12.4% annually to 273.1, followed by commercial land at 11.3% to 260.6, and industrial land at 8.0% to 251.9.
This upward trend has been consistent since 2020, affecting all 13 Divisional Secretariat divisions in Colombo District.
Land Valuation Trends
PeriodResidentialCommercialIndustrialOverall LVI
2024 H2242.9234.1233.2236.8
2025 H1266.9254.3248.0256.4
2025 H2273.1260.6251.9261.9
The Central Bank noted that the LVI is calculated using data from the Government Valuation Department, averaging land prices across different land-use types. The index has provided a comprehensive measure of Colombo land values since 2017.
Analysts attribute the surge to sustained urban development, high demand for residential plots, and increased commercial and industrial activity in the district.
As Colombo continues to expand, land prices are expected to remain on an upward trajectory, reflecting the ongoing attractiveness of the city for investment and development.
