Colombo District’s Land Valuations Indicator reaches 138.9

Today Land Valuations Indicator (LVI) for Colombo District compiled by the Central Bank of Sri Lanka (CBSL), reached 138.9 during the second half of 2019, recording an increase of 10.4 per cent compared to the second half of 2018. All three sub-indicators of LVI, namely Residential, Commercial and Industrial have contributed to this increase.

Residential LVI recorded the highest year-on-year increase of 10.7 per cent, while both the Commercial LVI and Industrial LVI increased by 10.3% . Meanwhile, the LVI increased by 5.1 per cent in second half of 2019 from 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 bi- annual basis, covering five DS divisions in the Colombo District. Subsequently, from 2017 onward, its geographical coverage was enhanced to represent all 13 DS divisions in the Colombo District and hence it was rebased considering first half of 2017 as the base period. From second half of 2019 onwards LPI is renamed as Land Valuations Indicator (LVI) and will be released on a bi-annual basis.

Per perch bare land prices are obtained from the Government Valuation Department on a bi-annual basis. 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 the simple average of these three sub-indicators. (Source -Daily News).