On year-on-year basis for the period ending June 2017, Land Price Index (LPI) recorded a 12.6 per cent increase, continuing the recent trend in land price movements in the Colombo district, the Central Bank said in a news release.
All three sub-indices of LPI (Residential, Commercial and Industrial) contributed to this increase.
In order to monitor the developments in the real estate sector, Central Bank (CB) has been compiling and analyzing several indicators.
The bi-annual Land Price Index (LPI) which is compiled covering the Colombo District since 1998 is one of the indicators of this nature. In the compilation process of LPI, the CB uses the land price data collected by the Valuation Department of Sri Lanka covering around 50 centers of five District Secretariat (DS) divisions1 in the Colombo District.
In view of the diverse nature of the land use and to maintain homogeneity, three indices for residential, commercial and industrial lands are computed separately. The overall LPI is computed by taking the average of these three sub-indices.
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