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?
Infrastructure-led growth: Suburbs with improved connectivity are driving strong regional price increases
- Economic recovery & policy easing: Following post-crisis tightening, commercial banks relaxed lending as the central bank eased rates — boosting affordability and demand
- 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.



