The Land Valuation Indicator (LVI) for Colombo District compiled by the Central Bank of Sri Lanka reached 138.9 in the second half of 2019, registering an increase of 10.4% compared to the second half of 2018 .
LVI’s three sub-indicators, namely residential, commercial and industrial, contributed to this increase, the Central Bank added. Residential LVI recorded the largest year-over-year increase of 10.7%, while commercial LVI and industrial LVI rose 10.3%. At the same time, the LVI increased by 5.1% in the second half of 2019 compared to the first half of 2019.
The Land Price Index (LPI) had been compiled from 1998 to 2008 on an annual basis and from 2009 to 2017 on a semi-annual basis, covering five divisions of the Divisional Secretariat in Colombo District.
Subsequently, from 2017, its geographic coverage was expanded to represent the 13 divisions of the Colombo District Divisional Secretariat and was therefore rebased to consider the first half of 2017 as the base period. From the second half of 2019, LPI was renamed LVI and published on a semi-annual basis.
Bare land prices per pole are obtained from the government’s Assessment Department on a semi-annual basis.
Given the diverse nature of land use and the need to maintain homogeneity, three sub-indicators for residential, commercial and industrial land are calculated separately for each DS division using the average bare land price per perch in the area. The LVI is the simple average of these three sub-indicators.