The Central Bank of Sri Lanka (CBSL) compiles and analyses several indicators, in order to monitor the developments in the real estate sector. Accordingly, the Land Price Index (LPI) (base year: 1998) has been compiled annually from 1998-2008 and bi-annually from 2009-2017, covering 50 centres of five DS divisions in the Colombo District.
With the increasing importance of monitoring land prices due to the recent developments in the real estate sector, the geographical coverage of LPI was expanded to 82 centres covering all DS divisions in the Colombo District and revised its base period from 1998 to 1st half of 2017 to accommodate this expansion.
The LPI with improved coverage is available biannually from 2017 onwardsColombo, Thimbirigasyaya, Dehiwala, Ratmalana, Kesbewa, Homagama, Padukka and Seethawaka are included in the survey. In view of the diverse nature of the land use and to maintain homogeneity, three sub-indices for residential, commercial and industrial lands are computed separately, using per perch bare land prices collected from the Government Valuation Department. The overall LPI is computed by taking the average of these three sub-indices.