Colombo land price growth slows to 5.9% in first half of 2026

Land price expansion across the Colombo District slowed markedly during the first 6-months of the year, signalling a broad stabilisation in the capital's real estate market.

According to official figures released by the Central Bank, the overall Land Valuation Indicator rose by 5.9% year-on-year in the first half of 2026.

This marks a notable deceleration from the double-digit growth rates recorded throughout 2025.

While annual growth has cooled, short-term activity showed signs of a modest pickup compared to the second half of last year.

The overall index climbed 3.7% on a semi-annual basis, led by gains in residential property.

Across sectors, residential land recorded the highest overall index value and the strongest annual growth at 6.7%.

Commercial land values increased by 5.7%, while industrial land recorded a 5.2% increase over the same period.

The figures indicate that while demand for housing and development space near the capital remains steady, overall land price inflation in Colombo is moderating following a period of rapid post-crisis adjustments.