SL’s land market shows strong momentum- LPW says
View(s):The Sri Lankan land market is gaining renewed strength, with Colombo and the broader Western Province leading the way in price growth, according to the latest Land Price Index (LPI) published by LankaPropertyWeb (LPW).
The 2025 index reveals that land prices in Colombo city (Colombo 1-15) have risen by 7 per cent year-on-year, while the overall Western Province recorded a 12 per cent increase — a notable jump from the 8 per cent rise observed the previous year. The report highlights a sustained upward trend in land values, particularly in Colombo’s suburbs and key districts like Gampaha and Kalutara.
Within the Colombo district (excluding the Colombo 1-15 area), average land prices surged by 20 per cent, underscoring a shift in investor focus toward suburban locales offering better affordability and development potential. Gampaha district saw an impressive 14 per cent rise, while Kalutara posted a more modest but steady 6 per cent increase over the past LPW said.
According to LPW, demand has been especially robust for lands priced below Rs. 500,000 per perch. This segment saw a remarkable 107 per cent price increase between the first quarter of 2020 and 2025. In contrast, high-end plots priced above Rs. 9.5 million per perch experienced limited growth, suggesting a tilt in buyer preference toward more affordable and mid-range properties.
Colombo’s real estate landscape continues to evolve. The central Colombo 1-15 area registered a 7 per cent uptick in land values this year, building on consistent gains over the last five years. However, it is the emerging suburbs that are showing the most dynamism. Kolonnawa led the district with a 21 per cent price increase, driven by its proximity to the city, improved transport links, and ongoing urban development projects. Piliyandala, Athurugiriya, and Homagama also recorded healthy gains, reflecting sustained investor interest.
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