Why invest in
Sri Lanka?
Sri Lanka is entering a different phase of its economic story.
After several difficult years, the economy returned to strong growth in 2024 and 2025. The IMF records real GDP growth of 5.0% in 2025 and currently projects growth of around 3.0% in 2026, notwithstanding new external pressures arising from higher energy prices and geopolitical uncertainty. The IMF has also reported continued progress under Sri Lanka’s economic reform programme, while emphasising that risks remain and continued reform is important. (IMF)
For property investors, one of the more interesting features of this recovery has been the continued movement in real-estate values.
The Central Bank of Sri Lanka’s latest Land Valuation Indicator for the Colombo District increased by 5.9% year-on-year in the first half of 2026. Residential land values increased by 6.7%, commercial land by 5.7%, and industrial land by 5.2%.
For international buyers, however, the more relevant market is generally the condominium sector.
The Central Bank’s Price Index for New Condominiums in the Colombo District reached 284.4 in the first quarter of 2026, an increase of 18.5% compared with a year earlier. Condominium asking prices were also 11.0% higher year-on-year. These figures do not guarantee future returns, but they demonstrate that the Colombo apartment market has experienced substantial recent price appreciation.
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ave a
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