Land values in the Colombo District rose 5.9% year-on-year in the first half of 2026, the Central Bank of Sri Lanka said, a pace it described as moderate and one that marks a sharp slowdown from the double-digit gains recorded through 2025.
The overall Land Valuation Indicator (LVI), which the Central Bank compiles for the Colombo District, was up 5.9% against the corresponding period of 2025. All three sub-indicators posted moderate increases.
Residential leads, industrial lags
Residential land recorded the largest rise at 6.7%, followed by commercial land at 5.7% and industrial land at 5.2%.
Measured against the second half of 2025 rather than year-on-year, the overall indicator and all three sub-indicators also increased. The Central Bank noted that residential and industrial land values recorded higher increases than those observed in the second half of 2025, pointing to firmer momentum in those two segments over the first six months of the year.
Half the pace of a year ago
The headline figure is well below the readings the same indicator produced through last year. EconomyNext reported residential land prices in the district rising 14.4% in the first half of 2025 and 12.4% in the second half on the same measure. At 6.7%, residential growth is now running at roughly half that rate.
The moderation lands alongside other signs of cooling in the capital’s property market. Central Bank data reported earlier showed condominium sales falling 15.2% in the first quarter of 2026.
The LVI tracks land price developments in the Colombo District across residential, commercial and industrial categories, and is published twice a year.
