The Land Valuation Indicator (LVI) for Colombo District indicated a notable slowdown on a year-on-year (YoY) basis in the latter half of 2023, according to data released by the Central Bank.
During the second half of 2023, the LVI recorded a growth rate of 7.1 percent, reflecting a deceleration compared to previous periods. This deceleration was evident across all sub-indicators of the LVI, including Residential, Commercial, and Industrial, which saw annual increases of 8.8 percent, 6.7 percent, and 5.9 percent, respectively.
On a semiannual basis, the LVI registered a moderate growth of 2.1 percent during the second half of 2023 compared to the first half of the same year.
The Central Bank attributed this deceleration to a slower increase in Industrial LVI, followed by Commercial and Residential LVIs, compared to the first half of 2023.
The LVI, formerly known as the Land Price Index (LPI), was compiled annually from 1998 to 2008 and semiannually from 2009 to 2017. The index is computed 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 then derived as the simple average of these three sub-indicators.
