Questions To Ask Your Real Estate Agent When Selling

A landlord can seek eviction under certain legally recognized reasons. These typically include:

• The tenant is in arrears of rent (i.e. behind on rent by over a month) when the property is under the Rent Act.
• The tenant is using the property for immoral or illegal purposes, or using it in a way that causes substantial damage or deterioration to the premises.
• The landlord (or certain close family members) needs the premises for their own residence or business purposes.

How to Serve Notice and Begin Eviction

• Provide written notice: For a tenancy (especially monthly tenancy outside Rent Act), it’s common to give at least one month’s notice.
• If the tenant does not vacate by the end of the notice period and if the reasons are valid, you may file a case in court to obtain an eviction order.

What Happens If The Landlord Does Not Follow Legal Procedures

• The eviction can be declared unlawful, and the tenant can claim relief, possibly including compensation.
• Courts may reject eviction claims where the application does not comply with the legal requirements introduced under the latest law.

Best Practices for Landlords in Sri Lanka

• Ensure you have a proper lease agreement, preferably written and signed by both parties.
• If you need the property for personal use, legally document your need; consider how the law handles such cases.
• When evicting, always issue formal notice, allow reasonable time for vacating, and if not complied with — proceed via court to obtain eviction order legally.
• Avoid trying to forcibly remove tenant or cut utilities, as this is illegal and could expose you to liability.
• If unsure, consult a lawyer familiar with landlord-tenant law in Sri Lanka — especially given that laws have recently changed.

2025 Land Price Index shows strong upward trend
The newly released Q1 2025 Land Price Index (LPI) reveals robust growth in land values across Sri Lanka’s Western Province.

Wide-ranging price increases across the Western Province

• Colombo city (Colombo 1–15): Prices rose 7% year‑on‑year

• Overall Western Province: Up 12%, marking a notable increase from 8% in Q1 2024

Suburban boom in Colombo district

• Colombo suburbs (excluding city core): Soared 20% Y‑o‑Y, as investors focus on affordable, developing areas
  – Kolonnawa: +21% — thanks to new transport links and development– Piliyandala, Athurugiriya, Homagama: All saw solid gains reflecting growing buyer interest

District-specific growth

• Gampaha District: +14% overall; hotspot Yakkala saw a dramatic 55% increase; Gampaha city rose 42%

• Kalutara District: More modest but steady growth at 6%; Ingiriya led with +20%, Horana +16%, Panadura +7%

Shift toward mid-range affordability

• Lands below Rs 500,000 per perch: Experienced a 107% rise in price from Q1 2020 to Q1 2025

• Premium plots over Rs 9.5 million per perch: Showed limited appreciation — highlighting buyer preference for value-oriented parcels

What’s fueling the momentum?

1. Infrastructure-led growth: Suburbs with improved connectivity are driving strong regional price increases

2. Economic recovery & policy easing: Following post-crisis tightening, commercial banks relaxed lending as the central bank eased rates — boosting affordability and demand
3. Preference shift: Buyers are increasingly opting for accessible, mid-range land rather than high-end parcels.

What This Means for Investors and Buyers

• Best opportunities: Emerging suburban hubs like Kolonnawa, Yakkala, and Ingiriya offer attractive prospects, especially for plots under Rs 500k per perch.

• Limited premium upside: High-end土地 appears saturated, with modest growth—suggesting capital appreciation is likely strongest in mid-tier, well-connected areas.

• Stay informed: Prices vary even within districts—properties near major roads or junctions command premiums. Always verify listings with a local valuer or agent.

Outlook: Q2 2025 and Beyond

Given the LPI’s data, the land market seems primed for continued momentum through 2025, particularly in suburban and mid-priced segments. As long as infrastructure projects stay on track and financing remains accessible, this growth trend is likely to persist.

Bottom line: Sri Lanka’s land market is demonstrating strong, diversified growth—grounded in strengthening suburban demand, value-driven purchases, and supportive macroeconomic conditions. Whether you’re investing or buying, the real action is now in emerging areas—not just traditional city cores.